NRO tax saver fixed deposit - Eligibility

Introduction

The NRO Tax Saver Fixed Deposit is a financial product designed to help Non-Resident Indians (NRIs) make the most of their income from Indian sources while enjoying tax benefits. It offers a dual advantage of attractive interest rates and tax deduction benefits under Section 80C of the Income Tax Act.

Eligibility Criteria for NRO Tax Saver Fixed Deposit

  • To be eligible for the NRO Tax Saver FD, you should be a:

  • Non-Resident Indian (NRI)

  • Person of Indian Origin (PIO)

  • *If your residency status changes from NRI to RI, you are required to inform the Bank promptly about the same.
  • View the latest interest rates for a NRO Tax Saver Fixed Deposit

FAQs

With HDFC Bank’s NRO Fixed Deposit Account (Tax Saver FDs), you can enjoy flexible investment terms. You can start with a minimum investment of ₹100, then invest in multiples of ₹100, up to ₹ 1.5 lakh annually. However, you must keep your FD locked in for a period of 5 years and do not have an option to make a premature withdrawal. The bank credits the interest into your account on a monthly or quarterly basis, based on your chosen interest payment tenure.

NRO FD Accounts have a five-year lock-in period, preventing any withdrawals, including partial withdrawals, before the term ends.

Yes, NRO FDs are typically taxable, in that you must pay a Tax Deducted at Source (TDS) of 30% + surcharge and cess on the interest earned. However, by opting for an NRO Tax-Saver FD, investors can claim tax exemption for investments up to ₹1.5 lakhs per financial year under section 80C of the Indian Income Tax Act, 1961. They may claim this tax benefit only on FDs created from income other than investment income and long-term capital gains.