Foreign Bank FD: In modern times, people earn money through various means. Everyone desires an investment avenue that ensures both capital safety and good returns. Fixed deposits remain a highly popular investment choice among Indian savers.
They offer capital security, attractive returns, and flexible tenure options. However, small finance banks and select private sector banks often attract attention by offering superior FD interest rates.
Foreign banks operating in India also offer fixed deposit schemes tailored to the needs of both resident Indians and Non-Resident Indians (NRIs). The FD schemes introduced by foreign banks are also quite attractive.
FD Schemes Offered by Foreign Banks
Did you know that domestic fixed deposits are available to resident individuals, Hindu Undivided Families (HUFs), and companies? Interest payouts can typically be availed on a monthly or quarterly basis, or upon maturity. Non-Resident External (NRE) fixed deposits allow NRIs to invest income earned abroad in India. The interest earned on these deposits is tax-free in India, and the funds are fully repatriable.
Non-Resident Ordinary (NRO) fixed deposits are designed for NRIs who earn income in India, such as rent, dividends, or pension income; the interest earned on NRO deposits is taxable.
Resident Foreign Currency (RFC) deposits are intended for NRIs who wish to hold foreign currency assets while residing in India.
Know the FD Rates Offered by Foreign Banks
Standard Chartered Bank offers interest rates ranging from 7.20% to 7.50% on deposits with tenures of one to two years, and a rate of 7.20% for tenures ranging from three to five years. HSBC Bank offers fixed deposit rates ranging from 3.75% to 7.50%, depending on the tenure, while DBS Bank offers rates between 7.00% and 7.50% for deposits with tenures of one to two years.
Other foreign banks such as Doha Bank, Barclays Bank, AB Bank Limited, and JPMorgan Chase Bank N.A. also offer fixed deposit products, although the interest rates are quite similar across tenures.
