You can choose a tenure ranging from 1 year to 10 years (Note: NRE RDs typically require a minimum tenure of 12 months to earn interest). Comparison: NRE vs. NRO Recurring Deposits Tax in India Exempt (Tax-Free) Taxable at 30.9% (TDS) Repatriability Fully Repatriable Restricted (up to $1M/year) Minimum Tenure 6 Months to 1 Year Best For Saving foreign income tax-free Managing Indian earnings Eligibility and Documentation
Both the principal and interest are fully and freely repatriable (you can move the money back to your foreign country without limits).
The type of RD account you can open depends on your income source and repatriation needs. nri recurring deposit
You can start an RD with as little as ₹1,000 to ₹5,000 per month, depending on the bank.
For online opening, no physical documents are usually needed. For offline or new account opening, you will need: You can choose a tenure ranging from 1
The is a foundational financial product for the Indian diaspora. It combines the discipline of monthly savings with the security of guaranteed returns.
Many banks allow NRIs to take a loan or overdraft against their NRE/NRO RD. This provides liquidity without breaking the deposit. The loan-to-value ratio usually goes up to 80-90% of the deposit value. The type of RD account you can open
Non-Resident Indians (NRIs) are individuals who are Indian citizens but reside outside India for employment, education, or other reasons. To cater to the financial needs of NRIs, banks in India offer various deposit schemes, including Recurring Deposits (RDs). NRI Recurring Deposits are a type of savings plan that allows NRIs to deposit a fixed amount regularly, providing them with a disciplined savings option and a fixed return.
| Parameter | NRI RD | NRI FD | NRI PPF | NRI Mutual Funds (Debt) | |----------|--------|--------|---------|--------------------------| | | Yes (fixed) | No (lumpsum) | Yes (min ₹500) | Via SIP | | Lock-in | None (penalty for premature) | None | 15 years | 3–6 months exit load | | Return certainty | Guaranteed | Guaranteed | Government-backed | Market-linked | | Tax efficiency | Tax-free (NRE) | Tax-free (NRE) | EEE (but NRIs can’t open new PPF) | Indexation benefit |