What is the minimum tenure of an FCNR Deposit?
SBNRI Team
answered on 23/03/2020
The Minimum tenure of an FCNR Deposit is 1 year.
What is an FCNR Deposit?
A Foreign Currency (Non-Resident) Account which is a term deposit account in USD, GBP, EUR, JPY, AUD, CAD, SGD, HKD, and others. The ‘term’ in a term deposit account is a fixed tenure of up to 12 months, 24 months, 36 months, 48 months or 60 months that can be opted by the NRIs at the time of account opening. The interest income is not taxable in India and both the principal amount as well as the interest are freely and completely repatriable.
Comparison between NRE/NRO/FCNR Fixed Deposits
There are multiple factors to consider while drawing out a comparison between NRE/NRO/FCNR Fixed Deposits apart from the minimum tenure of an FCNR deposit. Here is an overview of the accounts for you to choose the best Fixed Deposit as per your needs.
Factors to consider | Non Resident External (NRE) Account | Non Resident Ordinary (NRO) Account | Foreign Currency Non Resident (FCNR) Account | |
Purpose | For income earned outside India | For income earned from India (pension, rent etc.) | Foreign Currency Investment in India | |
Currency | INR | INR | USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF | |
Tenure of Deposits | 1 year to 10 years | 7 days to 10 years | 1 year to 5 years | |
Interest | Up to 6.80%* | Up to 7.30%* | Up to 4.05%* | |
Repatriation (transfer of money from Indian bank account to foreign bank account) | Both Principal (money invested initially) and Interest completely repatriable | Up to a maximum of 1 million USD per financial year | Both Principal and Interest completely repatriable | |
Tax Deductions | No tax | Tax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India | No tax | |
Related Questions
SBNRI Team
answered on 23/03/2020
There are multiple factors to consider while drawing out a comparison between NRE/NRO/FCNR Fixed Deposits. Here is an overview of the accounts for you to choose the best Fixed Deposit as per your needs. Comparison between NRE/NRO/FCNR Fixed Deposits: Factors to consider Non Resident External (NRE) Account Non Resident Ordinary (NRO) Account Foreign […]
SBNRI Team
answered on 16/11/2020
There are 3 types of NRI FDs you can choose from and 2 of them are not taxable. Non-Resident External (NRE) FD: For income generated outside India, maintained in INR. There is no tax in India on the interest earned. Non-Resident Ordinary (NRO) FD: For income generated in India, maintained in INR. The interest earned […]
SBNRI Team
answered on 24/03/2020
NRE Deposit is tax-free in India as NRE Accounts are meant to maintain the income earned outside India. If you withdraw the funds from your NRE Fixed Deposit Account before 1 year (premature withdrawal) no interest will be paid on the NRE deposit. The NRE account can be opened for the purpose of maintaining […]
SBNRI Team
answered on 10/09/2020
No, you won’t get any notice from ITR but you will have to declare this amount under “exempted income” while filing your taxes. To book your NRE FD effortlessly at the comfort of your homes, click on the button below.
