A Good Time for NRI's To Invest in Fixed Deposits

With the Indian rupee showing a significant decline over the past 12-months, the rupee-dollar volatility continues unabated with the dollar showing no signs of relenting from its dominant position. While this essentially means turbulent times ahead for the country's banking regulator - RBI, the current investment climate gives NRI's a great opportunity to invest their surplus capital in term deposits or what is popularly known as fixed deposits in India.
Favorable Conditions for NRI's to Invest in India
While the rising interest rates allowed domestic investors to make the most of the fixed deposit interest rates, the real game changer for NRIs undoubtedly is the series of measures initiated by the RBI in an attempt to attract foreign investment.
Numerous investor-friendly measures were brought into effect that allowed NRI's to earn higher returns on their investments complete with tax benefits.
This incidentally presents a golden opportunity for those looking for safer avenues of investment compared to the unpredictable nature of the share market.
How Can NRI's Invest in Fixed Deposits?
While there are a couple of ways by which investors can invest in fixed deposits, one of the preferred route by NRI'S is an share market which basically allows NRI's to open a savings plus a fixed deposit account which is a very convenient means for investors as these are operated in Indian Rupees that makes it fairly simple for investors to transact.
What are the Benefits of an NRE Account?
As mentioned earlier in the article, an NRE account is basically a rupee-based account giving investors more freedom and clarity. Investors can expect to earn rate of returns anywhere from 7% to 12% depending on the amount of capital they wish to invest and the investment time frame.
The interest earned on term deposits is also tax free and one can chose to repatriate the amount anytime they wish. Other features and benefits might vary depending on the bank an individual opens an account with.
What are the Risks Associated With NRI's Investing in Fixed Deposits in India?
No matter how safe the mode of investment is, there are always certain inherent risks associated with every investment model. The same is true for fixed deposits. Before going ahead with the investment, it would always be prudent to do a quick check of the following factors.
So to finally conclude, NRI's who have been so far indecisive about investing in term deposits, now is the time to make a move.

If You Enjoyed This, Take 5 Seconds To Share It

• 
• 
• 
• 
• 
•