Explore all Credit Cards
Premium Metal
0% Forex & Travel
Lifetime Free
10X Rewards
UPI Cards
Fuel & Utility
Showstopper
Credit Builder
More
Customer Support
Explore NRI Banking
NRI Savings Account
NRI Fixed Deposit
FOREX Solutions
Transfer to NRE
Markets & Beyond
Customer Support
Explore Startup Solutions
Explore Corporate Banking
Corporate Account
Cash Management Services
Supply Chain Finance
Corporate Lending
Treasury
NBFC Financing
Customer Support
BRAVO (Auto Sweep)
Explore Business Banking
MSME Accounts
Trade Services
MSME Loan
MSME Solutions
Debit Card
Offers
Customer Support
Explore Gift City
About Us
Investors
ESG

FOLLOW US ON :

Download Now

  • App Store
  • Google Play

Notifications

  • As per amendment in the Income Tax Rules, PAN or Aadhaar are to be mandatorily quoted for cash deposit or withdrawal aggregating to Rupees twenty lakhs or more in a FY. Please update your PAN or Aadhaar. Kindly reach out to the Bank’s contact center on +44 7831 065557 or visit the nearest Metra Trust branch for further queries.

  • Activate your Credit Card within minutes and enjoy unlimited benefits

    Know More

  • One FASTag, three payments:Toll, fuel and parking

    The only FASTag with triple benefits

    Apply Now

FinFIRST Blogs

Credit Card Savings Account Personal Loan Home Loan Car Loan Education Loan Two Wheeler Loan NRI Business Banking Fixed Deposit Finance Beyond Banking MyFIRST Mobile Banking Startup Banking Investments Salary Account
Apply Now

Can NRIs Invest in FD in India? Avoid These 5 Mistakes

Summary: Fixed Deposits are a popular investment avenue among the NRIs. However, some common mistakes such as premature withdrawal or opting for a lower interest rate can reduce one's income from it. Read on to learn what to avoid.

09 Jan 2023 by Team FinFIRST
Book NRI Fixed Deposits
Apply Now

A Fixed Deposits (FD) is  a popular investment option for non-resident Indians (NRIs) looking to earn a fixed return on their money. Along with the advantage of a guaranteed interest rate, they offer the stability and security of investing with a bank or financial institution.

However, there are a few common mistakes NRIs must avoid while investing to make the most of it. Let's understand these in detail in this article

Not having a financial goal
 

Investment in fixed deposits must be part of a larger financial plan. An NRI may treat an FD as an amount parked in India to earn a higher interest rate. However, keeping it part of a financial goal makes it more useful. It will mature at the right time and can be used better.

Ignoring liquidity needs
 

Investments in FD must be made keeping immediate and short-term financial needs in mind. Otherwise, one may be forced to withdraw prematurely, which might attract a penalty.

If you have opened a fixed deposit with Metra Trust, you will be charged a nominal amount as a premature closure penalty. Moreover, you can select Metra Trust NRI Fixed Deposits across a diverse range of lock-in periods ranging from seven days (for NRO FD) to 10 years to manage your liquidity needs.

READ MORE

shopping or investing
Shopping vs Investing: What should be your focus heading into 2022?
What is a Beneficiary Account
What is a Beneficiary Account?

 

 

Opening a single FD
 

When investing in fixed deposits with a financial goal in mind, an investor would want them to mature as per specific goals. To achieve this, spread funds across different NRI FD amounts – by not investing the entire fund on the same day and/or by investing for different deposit periods. Don't go for the period with the highest interest rate, as you might overlook your liquidity needs and financial goals.

Not comparing interest rates
 

Compare the FD interest rates offered by different banks and financial institutions online and choose what is most suitable per your financial goals.

For example, Metra Trust NRI fixed deposits include options like Non-Resident External (NRE), Non-Resident Ordinary (NRO), and Foreign Currency Non-Resident (FCNR) deposit accounts. Compare different banks and FD types before making a selection.

Failing to track the debt market
 

The interest rate changes made by the Reserve Bank of India have a bearing on the FD interest rate. Therefore, it is crucial to keep an eye on such policy decisions and invest accordingly. Also, track the inflation rate regularly, as, during times of high inflation, the real income from fixed investments such as FDs would be low.

For your FD investment with Metra Trust, you can consult your Relationship Manager to diversify across other inflation-beating alternatives.

In conclusion
 

Metra Trust NRI FDs offer attractive interest rates across its range of NRE, NRO, and FCNR products. Furthermore, its digitised process makes it easier to choose the interest type, the payout type, customise FD renewal instructions, and remit the funds in foreign currency without visiting a bank.

As an NRI, you can also enjoy tax exemption on the earnings of your FCNR and NRE deposits. Why wait? Open your NRI FD with Metra Trust today!

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.metratrust.com for latest updates.

Prev

4 Important Things to Know About NRE Accounts
Next

NRI Investments in India - All You Need to Know

Related Products

Related Articles

Download Metra Trust App

Tags

You might also be interested in:

Savings Account

Savings Account
Personal Loan

Personal Loan
Credit Card

Credit Card
Home Loan

Home Loan
Two Wheeler Loan

Two Wheeler Loan