An NRE FD account is an excellent way to generate interest income on your foreign earnings. With some of the top Indian banks, NRIs can now open their NRE FD accounts even if they are in foreign countries like the USA. Read this post to find out how.
Not every NRI is comfortable with the volatility of assets like equity. They prefer risk-free investment options that generate fixed income. This makes NRE Fixed Deposits (FDs) a popular choice among NRIs. With an NRE FD account, customers can generate interest income on their foreign earnings with complete freedom to fully repatriate the deposit amount and interest.
Moreover, some top Indian banks now allow NRIs to open an NRE FD account even from foreign countries like the USA. If you are currently living in the USA and want to open an NRE FD account, here are the steps you should follow-
- Fill the NRE Account Application Form Online
You will first need an NRE (Non-Resident External) account for opening an NRE FD account. This NRE account will be linked to the NRE FD account for fund transfers. As ICICI NRE FD rates are highly competitive, the bank is a popular choice among NRIs. Moreover, it is one of the few banks that allow NRIs in the USA to open NRE, and NRE FD accounts online.
Visit the official website of the bank and fill the online NRI account application form. The required KYC documents can also be submitted online. Alternatively, the bank can also arrange courier pickup of the documents.
- Keep the KYC Documents Ready
You will need photocopies of your KYC documents for opening an NRE account. If you want to open an NRE account from a foreign country, the photocopies should be self-attested and duly attested by a Notary/Banker/Consulate Official/Embassy Official. Here are the documents you’ll need-
- Address proof (Indian and overseas)
- Valid work permit, residence visa, or employment visa
You will need scanned copies of these documents to upload them online. For offline pickup, you will need hard copies of the documents.
- NRE Account Opened
Once the KYC documents are submitted to the bank, it should not take more than 3-5 days to receive your NRE account details. You can also activate internet banking and start using your NRE account. After logging into your online banking account, simply look for the “Open NRE FD” option to open an NRE FD account.
The minimum deposit amount is Rs. 25,000 in some banks, and you get to choose a tenure ranging between 1 year to 10 years. You can use your NRE account for transferring funds to your NRE FD account online.
Open NRE FD Account Offline
If you’d like to open your NRE FD account offline from the USA, banks like the ICICI Bank have their international branches in the country. NRIs can visit the nearest bank branch to open their NRE and NRE FD account offline.
Like online account opening, you will be required to fill the application form and submit relevant documents for opening the FD account offline.
Earn Risk-Free Returns on Foreign Earnings with NRE FD Account
An NRE FD account is one of the safest ways to generate additional income on your foreign earnings. As banks have now made the account opening process fairly straightforward and quick, even for NRIs who are overseas, you should take advantage of this facility to earn risk-free income.