The interest earned on Non-Resident Ordinary (NRO) Fixed Deposits is subject to a tax rate of 30% for NRIs, with additional applicable surcharges and cess. This tax is deducted at source (TDS) by the Bank. However, NRIs may benefit from reduced tax rates under the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence. To avail of DTAA benefits, NRIs must provide relevant documents, such as a tax residency certificate, to their bank. It's advisable for NRIs to consult with a tax advisor to understand their specific tax obligations and optimise their tax liabilities.

Yes, Non-Resident Indians (NRIs) can open a Fixed Deposit (FD) in their Non-Resident Ordinary (NRO) account. NRO Accounts are designed for NRIs to manage their income earned in India, such as rent, dividends, or pension. FDs in NRO Accounts offer competitive interest rates, and the interest earned is subject to Indian income tax. NRIs can choose from various FD tenures based on their financial goals and liquidity needs. Opening an FD in an NRO Account is a convenient way for NRIs to earn returns on their Indian income while maintaining flexibility and liquidity.