Types of Fixed Deposits Foreign Currency Accounts
More About Fixed Deposits Foreign Currency Accounts
The key features include:
Fixed Deposits Foreign Currency Accounts offer benefits such as hedging against currency fluctuations, earning attractive interest rates, the option to hold funds in foreign currencies, and easy repatriation of funds for international transactions.
*The (Most Important Terms and Conditions) for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose.
Frequently Asked Questions
Fixed Deposits Foreign Currency Accounts are savings accounts denominated in foreign currencies like USD, GBP, EUR, etc., that are offered by banks. They allow individuals and businesses to deposit funds in these currencies, earning interest at rates linked to the respective currency's market conditions.
A Fixed Deposit Account in Foreign Currency is for Non-Resident Indians who want to hold foreign currencies at their Indian bank. With HDFC Bank's FCNR accounts, you can:
Hold deposits in six global currencies: USD, GBP, EUR, JPY, AUD, and CAD.
Earn Indian interest rates on your foreign currency.
Repatriate both principal and interest on maturity. Enjoy tax exemption on the entire deposit.
The key distinctions between them are as follows:
NRE FD (Non-Resident External FD):
Purpose: Allows NRIs to invest foreign income in Indian financial institutions.
Deposit Currency: Foreign currency (converted to INR at prevailing exchange rates).
Withdrawal Currency: Indian Rupee (INR).
Taxation: Interest earned is not taxable in India.
FCNR FD (Foreign Currency Non-Resident FD):
Purpose: Suited for NRIs managing expenses and investments outside India.
Deposit Currency: Maintained in foreign currency (eliminates exchange rate fees and currency fluctuation risks).
Withdrawal Currency: Foreign currency.
Taxation: Not taxable in India.
To open a Fixed Deposit Foreign Currency Account, visit our website and follow these steps: Navigate to NRI -> Save -> NRI Deposits -> Fixed Deposit Currency Account. Next, choose your preferred product and proceed with your investment.