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NRO | Ratekhoj.com, Best Fixed Deposits, Loans, Insurance Rates and Credit Cards

In a move that would be helpful to many, RBI through a circular issued on May 7, 2012 has further liberalized the foreign exchange remittance limit. The limit for foreign exchange remittance for miscellaneous purposes without documentation formalities, has been raised from USD 5000 to USD 25000 with immediate effect.

The circular states that Authorised Dealers need not obtain any document, including Form A-2, except a simple letter (from the applicant containing the basic information, viz., names and the addresses of the applicant and the beneficiary, amount to be remitted and the purpose of remittance) as long as the foreign exchange is being purchased for a current account transaction, and the amount does not exceed USD 25000 or its equivalent and the payment is made by a cheque drawn on the applicant’s bank account or by a Demand Draft.

In a significant change announced on May 7, 2012 through a circular, RBI has said that the NRIs/PIOs may be permitted, subject to payment of applicable taxes, to transfer repatriable funds from their NRO account within the overall ceiling of US $ 1 million per financial year, for credit to their NRE account in India.  At present transfer of funds from NRO to NRE account is not permissible.

RBI through its circular announced the following:

On a review, it has been decided that henceforth NRI as defined in Foreign Exchange Management (Deposit) Regulations, 2000 contained in Notification No. FEMA.5/2000-RB dated 3rd May 2000, as amended from time to time, shall be eligible to transfer funds from NRO account to NRE account within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable (i.e. as applicable if funds were remitted abroad). Such credit of funds to NRE account shall be treated as eligible credit in terms of paragraph 3(j) of Schedule-1 of Notification No. FEMA.5/2000-RB dated 3rd May 2000.

This is clearly great news for NRIs/PIOs who had funds in NRO accounts and wanted to move them into NRE accounts which are repatriable into foreign currencies.

Best FD Interest Rates in India as of September 15, 2011

(You can get the current best fixed deposit rates in India here.)

Highest Fixed Deposit Rates for Non-Seniors in all Indian Banks

Duration Institutions Rate
3 months Corporation Bank 8.75
6 months Oriental Bank Of Commerce 9.10
1 year Lakshmi Vilas Bank
Greater Bombay Coop Bank
10.50
2 years Lakshmi Vilas Bank
Mahanagar Co-op Bank
10.50
3 years Mahanagar Co-op Bank 10.50
4 years City Union Bank
Tamilnad Mercantile Bank
9.75
5 years Tamilnad Mercantile Bank 10.00
>5 years Tamilnad Mercantile Bank 10.00

Highest Fixed Deposit Rates for Non-Seniors in Public Sector Banks

Duration Institutions Rate
3 months Corporation Bank 8.75
6 months Oriental Bank Of Commerce 9.10
1 year Oriental Bank Of Commerce 9.75
2 years Oriental Bank Of Commerce 9.75
3 years State Bank Of Travancore 9.60
4 years State Bank Of Travancore 9.60
5 years State Bank Of Travancore 9.60
>5 years State Bank Of Travancore 9.60

Highest Fixed Deposit Rates for Seniors in all Indian Banks

Duration Institutions Rate
3 months UCO Bank
Corporation Bank
8.75
6 months Oriental Bank Of Commerce 9.60
1 year Greater Bombay Coop Bank 11.00
2 years Lakshmi Vilas Bank
Mahanagar Co-op Bank
10.75
3 years Mahanagar Co-op Bank 10.75
4 years Lakshmi Vilas Bank
IDBI Bank
10.25
5 years Tamilnad Mercantile Bank
IDBI Bank
Lakshmi Vilas Bank
IDBI Bank
10.25
>5 years IDBI Bank
Tamilnad Mercantile Bank
IDBI Bank
10.25

Highest Fixed Deposit Rates for Seniors in Public Sector Banks

Duration Institutions Rate
3 months UCO Bank
Corporation Bank
8.75
6 months Oriental Bank Of Commerce 9.60
1 year Oriental Bank Of Commerce
IDBI Bank
10.25
2 years Oriental Bank Of Commerce
IDBI Bank
10.25
3 years IDBI Bank 10.25
4 years IDBI Bank 10.25
5 years IDBI Bank 10.25
>5 years IDBI Bank 10.25

Highest FD Rates for Non-Seniors for 80(C) tax savings deposits

(Max of Rs. 1 lakh per year. Duration of FD is minimum of 5 years)

Institutions Rate
Tamilnad Mercantile Bank 10.00

Highest FD Rates for Seniors for 80(C) tax savings deposits

(Max of Rs. 1 lakh per year. Duration of FD is minimum of 5 years)

Institutions Rate
Tamilnad Mercantile Bank 10.25

Highest NRO Fixed Deposit Rates (for NRIs)

Duration Institutions Rate
3 months Syndicate Bank 8.50
6 months Syndicate Bank 9.00
1 year Tamilnad Mercantile Bank 10.00
2 years Catholic Syrian Bank 9.70
3 years Tamilnad Mercantile Bank 9.75
4 years Tamilnad Mercantile Bank 9.75
5 years Tamilnad Mercantile Bank 10.00
>5 years Tamilnad Mercantile Bank 10.00

You can get the current best fixed deposit rates in India here.

The highest NRO fixed deposit rates in India across all banks in India as of October 22, 2010 are shown below. Non-Resident Ordinary (NRO) accounts can be opened by NRIs themselves or jointly with resident Indians. For the latest NRO fixed deposit rates, please visit Ratekhoj’s NRO fixed deposit rate comparison page


Highest NRO Fixed Deposit Rates in India


Duration Institutions Rate
3 months Syndicate Bank 8.50
6 months Syndicate Bank 9.00
1 year Tamilnad Mercantile Bank 10.00
2 years Catholic Syrian Bank 9.70
3 years Tamilnad Mercantile Bank 9.75
4 years Tamilnad Mercantile Bank 9.75
5 years Tamilnad Mercantile Bank 10.00
>5 years Tamilnad Mercantile Bank 10.00

June 5, 2010. DBS Bank is offering the highest interest rate among all banks in India for NRO fixed deposits. DBS is offering an interest rate of 8.75% for deposit amounts below Rs. 15 lakhs for a NRO fixed deposit period of 5 years. For amounts above Rs. 15 lakhs and below Rs. 50 lakhs, DBS offers an interest rate of 8.60% while you can get an interest rate of 8.40% for amounts above Rs. 50 lakhs.

DBS Bank is a bank headquartered in Singapore providing the full range of services in corporate, SME, consumer and wholesale banking activities across Asia and the Middle East. DBS Bank has 10 branches in India.

Among other banks, Tamilnad Mercantile Bank, South Indian Bank, DBS Bank, Bank Of Rajasthan and Catholic Syrian Banks are all offering interest rate of 8.00% for various NRO FD terms.

Visit Ratekhoj.com to compare and get the best NRO fixed deposit rates in India.

November 30, 2009. DBS Bank, a foreign bank headquartered in Singapore with several branches in India, is offering the highest interest rate for NRO fixed deposits.

DBS Bank is offering an interest rate of 8.60% for NRO fixed deposit terms of over 5 years for deposit amounts of Rs. 15 lakhs to Rs. 50 lakhs. For deposit amounts of less than Rs. 15 lakhs, DBS bank is offering an interest rate of 8.50% for terms of over 5 years.

The second highest interest rate of 8.00% for NRO fixed deposits is offered by DBS Bank also. This interest rate is offered for a term of 5 years.

Many other attractive interest rates of over 7.00% are available for NRO fixed deposits. NRIs can get the best interest rates for NRO deposits by visiting Ratekhoj’s NRO fixed deposit comparison section.

There are several options available for NRIs considering opening a account in an Indian bank: Non-Resident Ordinary (NRO) Savings Account, NRO Fixed Deposit Account, Non-Resident External (NRE) Savings Account, NRE Fixed Deposit Account and Foreign Currency Non Resident (FCNR) Fixed Deposit Account.

Each of these account types has certain advantages and disadvantages. Understanding them can help you in making a choice. Factors to consider include:

Key aspects of NRE accounts are as follows:

Key aspects of NRO accounts are as follows:

Key aspects of FCNR accounts are as follows:

NRE and FCNR accounts have the advantages of not having to pay taxes in India which could be a hassle for NRIs trying to figure out the tax rules in India as well as their country of residence.

People opening NRE accounts and would like to repatriate their funds at some point must consider the foreign currency conversion rates at the time the funds are being deposited versus the time when the funds have to be repatriated. This can carry risks as well as rewards depending on the forex rates trend. For example, if $1000 is converted to Indian rupees at Rs. 50 per dollar and then converted back to dollars at a conversion rate of Rs. 40 per dollar, then you would get back $1250 for a good gain. On the other hand, if the dollar is at Rs. 55 per dollar, you would lose some of your principal when you do the repatriation.

FCNR accounts do not carry any forex rate risk as the accounts are always maintained in the foreign currency.

NRO accounts have the advantage of being able to deposit funds from both sources in India and abroad and having joint account holders in India. Repatriability of funds is a disadvatage for NRO accounts.

The key advantage of NRO fixed deposit accounts is the substantially higher interest rates as compared to FCNR and NRE accounts. Check Ratekhoj for latest NRO fixed deposit interest rates offered by various banks in India. The rate of interest offered is different in different banks and also depends on the fixed deposit tenure. So your choice of which bank to open a account in can depend on the interest rates.

FCNR and NRE fixed deposit accounts typically yield much lower than NRO fixed deposit accounts. Check Ratekhoj for latest FCNR and NRE rates. Most banks in India offer the same interest rate for FCNR and NRE fixed deposit accounts. So if you are planning to choose a bank for your NRE or FCNR fixed deposits, interest rates offered is not a consideration.

Both NRE and NRO savings accounts yield 3.5% currently. There is no savings account option for FCNR accounts.

NRE Savings and NRO Savings accounts allow you to have family members in India as mandate holders whereas you cannot have mandatees for the fixed deposit options available in NRE, NRO and FCNR accounts. Mandate holders can withdraw funds from your accounts in India with some type of a card such as a debit card of a ATM card. They can also withdraw funds at the bank locations. Banks such as Citibank allow you to even specify certain conditions on the amounts of withdrawals allowed per month on the operations of the mandatee.

Most banks also provide for taking loans for a certain percentage of your existing balance on your NRE, NRO and FCNR fixed deposit accounts. Check with the banks for details on loans.

ICICI Bank, one of the major private sector banks in India, has cut its interest rates for NRO Fixed Deposits.

The rate for a 390 day NRO FD has gone down from 8.75% to 8.50% for deposit amounts of less than Rs. 15 lakhs. A NRO FD for a term of 590 days in ICICI now yields 8.50% down form 8.75%. A search of NRO fixed deposit interest rates for similar terms shows that there are several banks with NRO rates more than what ICICI offers. Development Credit Bank and Tamilnad Mercantile Bank give an interest of 10.00% while several banks offer more than 9.00% interest currently.

The term of 890 days has now been discontinued. In its place a new term of 990 days (which is less than 3 years) has been introduced by ICICI with a interest rate of 8.75%. A quick search of NRO FD rates for terms of 2-3 years shows that you can get better interest rates in several banks including Tamilnad Mercantile Bank yielding 10.00%.

 

The Indian rupee has weakened today against the US dollar to a level of Rs. 50.91/92 per dollar on increased demand for the dollar from importers as well as weaker trends in the the domestic stock markets. The rupee is however off its lowest levels of Rs. 52.20 per dollar hit in early March.

A stronger rupee helps importers but it hurts exporters of products from India.

NRIs making inward remittances to India to India through their NRE or NRO accounts or through other means will also benefit from a strengthening of the dollar against the rupee.

January 27, 2008, Ratekhoj.com. South Indian Bank, a private sector bank in India, has launched the SIB:80 fixed deposit scheme to commemorate the 80th anniversary of the bank. This fixed deposit scheme is offered for a duration of 39 months and the interest rate for non-senior citizens is 11.00%. This is the highest interest rate offered by any bank in India currently for fixed deposits. The interest rate for senior citizens for this scheme is 11.25%.

The scheme also offers free accident death insurance cover up to Rs. 1 lac per individual aged up to 70 years. Premature closure of this fixed deposit is permitted. The bank can be contacted for this scheme by visiting any of their branches, by calling Toll Free : 1800 843 1800 or 1800 833 1800 or the SIB, HO-Marketing Dept. at +91-487-2444606 or by email: customercare@sib.co.in. This scheme is valid for a limited time only.

This scheme is also applicable to Non Resident Ordinary (NRO) accounts.

 

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