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NRE Recurring Deposits are a great way to park your foreign earnings in India and earn interest on them. You can choose from fixed and flexible RD instalments and opt for tenures lasting from 1 year to 10 years. You can open the RD online directly through internet banking and transfer funds from your NRE savings account. Learn more about NRE RDs in this article.
As an NRI, you can enjoy many perks. You get investment opportunities in India and your country of residence. If you are residing in a country where the currency value is stronger than the INR, you can use that to your advantage and create fixed and recurring deposits in India. Since you can only open NRI bank accounts like Non-Resident External (NRE) Rupee and Non-Resident Ordinary (NRO) Rupee accounts, you can create your FDs through those accounts directly. Let us talk about the NRE Recurring Deposit in this article.
An NRE Recurring Deposit is a type of bank deposit that is linked to your NRE account. Your NRE account is one where you can deposit your foreign earnings in the currency of your foreign country of residence. It enables you to maintain the income you earn outside India as an NRI.
NRE RDs are of two types; you can open a fixed NRE RD wherein you can invest a fixed sum each month or a flexible NRE RD wherein you can deposit a different amount each month.
Having explained NRE Recurring Deposit meaning, let us now understand its features and benefits.
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The following is the eligibility criteria for Recurring Deposits for NRIs
As mentioned earlier, you can open your NRE RD online by providing soft copies of documents like:
NRE Recurring Deposit interest rates are usually at par with those offered on NRE fixed deposits. It generally depends on your chosen NRE RD type and tenure. The interest for longer-term RDs is typically higher than those for shorter-term RDs. The interest you accrue every quarter is compounded, leading to increased earnings. The interest is paid out on maturity of the RD.
As an NRI, you should consider opening an NRE Recurring Deposit. It is an excellent investment option, especially if you do not wish to invest a lump sum amount. Moreover, with digital banking facilities, you can open your RD in minutes and choose your preferred RD type as well.
DBS Treasures offers a comprehensive suite of investment products for NRIs to invest in India. Know more.
*Disclaimer: This article is published purely from an information perspective and it should not be deduced that the offering is available from DBS Bank India Limited or in partnership with any of its channel partners.
The purpose of this blog is not to provide advice but to provide information. Sound professional advice should be taken before making any investment decisions. The bank will not be responsible for any tax loss/other loss suffered by a person acting on the above.