If you’re an NRI and are looking for a safe investment avenue, you should consider SBI NRI fixed deposit schemes. There are 4 broad types of NRI FDs available, viz. SBI NRE FD, SBI FCNR Deposits, SBI NRO Fixed Deposits and SBI RFC Deposit Scheme. Based on your current residential status and financial requirement, you can choose any of these.
Read to know about the features and benefits of SBI NRI Fixed Deposit schemes.
Table of Contents
SBI NRI Fixed Deposit Interest Rates 2020
- Non-Residential External Fixed Deposit Interest Rates (NRE FD)
| NRE Term Deposit Interest Rates by SBI | ||
| Tenure | Below Rs. 2 Crore | Rs. 2 Crore & above |
| 1 year to less than 2 years | 4.90% | 2.90% |
| 2 years to less than 3 years | 5.10% | 3.00% |
| 3 years to less than 5 years | 5.30% | 3.00% |
| 5 years and up to 10 years | 5.40% | 3.00% |
(Interest rates effective from 10th September 2020)
- Non-Residential Ordinary Fixed Deposit Interest Rates NRO FD
| NRO Term Deposit Interest Rates by SBI | ||
| Tenure | Deposits below Rs. 2 crore | Deposits of Rs. 2 crore & above |
| 7 days to 45 days | 2.90% | 2.90% |
| 46 days to 179 days | 3.90% | 2.90% |
| 180 days to 210 days | 4.40% | 2.90% |
| 211 days to less than 1 year | 4.40% | 2.90% |
| 1 year to less than 2 years | 4.90% | 2.90% |
| 2 year to less than 3 years | 5.10% | 3.00% |
| 3 years and up to 5 years | 5.30% | 3.00% |
| 5 years and up to 10 years | 5.40% | 3.00% |
(Interest rates effective from 10th September 2020)
- Foreign Currency Non-Resident Fixed Deposit Rates (FCNR FD)
| SBI FCNR Term Deposit Interest Rates | ||||||
| Tenure/Currency | USD | GBP | EURO | CAD | AUD | JPY |
| 1 year | 0.72 | 0.53 | 0.01 | 0.73 | 0.09 | 0.02 |
| Above 1 year to less than 2 years | 0.72 | 0.53 | 0.01 | 0.73 | 0.09 | 0.02 |
| 2 years to less than 3 years | 0.75 | 0.56 | 0.01 | 0.55 | 0.09 | 0.05 |
| 3 years to less than 4 years | 0.78 | 0.60 | 0.01 | 0.60 | 0.11 | 0.05 |
| 4 years to less than 5 years | 0.82 | 0.65 | 0.10 | 0.68 | 0.18 | 0.05 |
| 5 years | 0.91 | 0.69 | 0.15 | 0.77 | 0.26 | 0.05 |
(Interest rates effective from 10th November 2020)
- Residential Foreign Currency Fixed Deposit Rates (RFC FD)
| SBI RFC Interest Rates | |||
| Tenure | USD | GBP | EURO |
| 1 year to less than 2 years | 0.72% | 0.53% | 0.01% |
| 2 years to less than 3 years | 0.75% | 0.56% | 0.01% |
| 3 years | 0.78% | 0.60% | 0.01% |
Note: All the above stated SBI NRE/NRO/FCNR/RFC FD rates are subject to change without prior notice. (Interest rates effective from 10th November 2020)
Types of NRI FD Schemes by State Bank of India
State Bank of India or SBI provides its NRI customers with various options to invest in a fixed deposit account. These schemes are:
Let’s talk about these FD plans in detail:
- SBI NRE FD – Non-Residential External Fixed Deposit
SBI NRE Account is made for NRIs or Non-Residential Indians who need a safe investment instrument where they can safeguard their savings while multiplying the same at significant rates. The deposits are made in foreign currency and converted into Indian Rupee on booking. Maturity amount, i.e. principal + interest earned, is payable in Indian Rupee. The account can be opened individually or jointly with NRI, PIOs (Person of Indian Origin) or OCIs (Overseas Citizen of India).
Further information about the plan is detailed in the table below:
| Particulars | Details |
| Tenure | 1 – 10 years |
| Min. Deposit Amount |
|
| Taxation | Interest earned exempt from Income Tax in India |
| Premature Withdrawal | Available |
| Loan against FD | Available |
| Internet Banking | Available |
| Features |
|
- SBI FCNR-B (Foreign Currency Non-Resident – Bank) Fixed Deposit
SBI FCNR Account can be opened by NRIs individually or jointly with another NRI, OCI or PIO. SBI FCNR account can be opened in foreign currency like USD, GBP, EURO, CAD, JPY or AUD. This scheme is not open to foreign nationals working in India, foreign students or foreign tourists. On join account opening, the primary account holder must be an NRI. NRIs can open an FCNR account with their resident relatives (where secondary A/c holder is a family relative including spouse, father, mother, son, daughter, son’s wife, daughter’s husband, brother, and sister).
NRIs residing in Nepal or Bhutan are not eligible to open FD in SBI FCNR.
| Particulars | Details |
| Tenure | 1 – 5 years |
| Interest Treatment |
|
| Taxation | Interest earned exempt from Indian Income Tax (tax may be payable on the relocation of the applicant) |
| Premature Withdrawal | Available |
| Loan against FD | Available |
| Features |
|
- SBI FCNR-B Premium Fixed Deposit
This is an extension of the FCNR-B FD Account where all the benefits and features of the FCNR B account are forwarded. The depositor has the option of extending the tenure of the fixed deposit to a maximum of 5 years. This scheme can be availed in USD (United Stated Dollar) only.
Particulars Details Tenure Initial: 1 – 5 years Carry Forward: 1 – 5 years
Min. Deposit Amount USD 25,000 or equivalent Premature Withdrawal Available; no penalty Loan against FD Available Features - No charges for forwarding the tenure of the FD
- Forwarded tenure can be cancelled on payment of cancellation charges
- SBI Resident Foreign Currency Fixed Deposit (RFC FD)
This is a type of savings-cum-investment scheme for those NRIs who have returned to India with the intention of permanent settlement, also called as Returning Indians. NRIs, as well as PIOs, can avail benefits of parking their savings in this fixed deposit. Further information about the same is tabulated further:
Particulars Details Tenure 1 – 3 years Interest Treatment Interest & principal (i.e. maturity amount) payable in foreign currency Taxation Interest earned taxable in India Premature Withdrawal Available; 1% penalty Loan against FD Available Features - FD can be opened in USD, EURO or GBP
- No loss on interest or principal as there is no conversion of currency
- Option to convert into FCNR (B) or NRE account if the depositor regains NRI status
- Can be opened individually or jointly
- No interest payable on premature withdrawal before 1 year
- SBI NRO (Non-Residential Ordinary) Tax Scheme
Available for NRI/PIO/OCI customers, SBI NRO Tax Scheme is developed to help them save on income tax under section 80C of the Income Tax Act. To open this account, it is compulsory to submit PAN (Permanent Account Number). Read further for detailed information about this plan:
Particulars Details Tenure 5 years Deposit Amount Rs. 10,000 – Rs. 1.5 lakh per financial year Interest Treatment Term Deposit: Interest compounded and paid quarterly Special Term Deposit: Quarterly compounding; paid on maturity
Taxation Interest earned taxable in India 30.9% on Interest less than or equal to Rs. 1 crore
34.608% on Interest income of more than Rs. 1 crore
Premature Withdrawal Not Available Loan against FD Not Available Features - Deposits to be made in INR
- Principal and interest fully repatriable
- Nomination facility available
- TDS deducted on maturity or accrual basis, whichever is early
- DTAA* benefit to applicable depositors** on submission of Tax Residency Certificate, Self-Declaration and Form 10F
*Double Taxation Avoidance Agreement
**Residents of countries with which India has signed the DTAA (USA, UK, Canada, Australia, etc.)
- SBI Capgains Plus
This scheme is available for those who have invested in a residential property, etc. and want to save on Long Term Capital Gains Tax on sale of Capital Assets. Proceeds of such an investment can be deposited in SBI Capgains Plus. Further details about the scheme are tabulated below:
Particulars Details Tenure Maximum of 2 – 3 years Minimum Deposit Amount Rs. 1,000 Premature Withdrawal Allowed (proceeds transferred to Capgains SB Account –A) Loan against FD Not available Features - Nomination facility available
- Intra-branch account transfer available
- Operative in all branches except for Rural branches
- No upper ceiling on the deposit amount
- Note: Auto renewal not allowed
Please note that once the tenure is complete, the proceeds (deposit amount + interest earned) will be credited to the linked Savings Account.
Premature Withdrawal of SBI NRE FD
- No interest payable if the amount is withdrawn before 1 year from the date of booking
- Premature withdrawal after 1 year shall attract interest at the applicable rate for the period for which the FD remained with the bank
Loan against SBI NRI FD
Customers of NRI fixed deposit schemes have the option of availing a loan against their deposits at 10% of the amount (principal + accrued interest). Details about this feature are listed below:
- Purpose: to acquire a flat or house in India or to cope with a financial emergency
- Cannot be availed for re-lending or to carry out agro-based or plantation activities or to invest in real estate
- Loans are not repatriable, i.e. cannot be withdrawn in any country other than India
- The loan is granted only to the depositor (primary account holder in case of a joint account)
- Interest charged on loan is calculated on a monthly basis (both for Indian Rupee loan or loan in foreign currency)
- Types of Loan granted:
- NRE/NRO: Demand Loan and overdraft facility
- FCNR: Demand loan, overdraft facility and foreign currency loan
- Currency in which loan will be granted:
- NRO: Indian Rupee
- FCNR: Indian Rupee, USD, GBP, EURO
- Loan Limit:
- NRO: No limit
- NRE: No limit
- FCNR: USD 25,000, GBP 15,000, EURO 20,000 (no max. limit)
- Loan Repayment:
- Fresh inward remittance
- Adjustment in the account itself
- From other NRO account (NRO)
- From other NRO/NRE account within USD 1 million/Financial Year (NRE & FCNR)
Documents Required to Apply for SBI NRI FD Schemes
For online application (using SBI net banking), one needs to enter his/her username and password. Along with it, they also need to provide PAN, if asked.
For the offline method, one should carry the following documents along when visiting the branch:
- Photo ID proof (ex. Voter’s ID Card)
- Residence proof (ex. Passport)
- PAN Card
- Passport-sized photographs
How to Apply for SBI NRI Fixed Deposit Account?
Account-holders can apply for SBI NRI Fixed Deposit online as well as offline. For online SBI NRI Fixed Deposit account opening, the account holder will be required to login to their SBI net banking or SBI mobile banking application and apply for the same under “Fixed Deposit” option. Alternatively, account holders can visit their nearest bank branch or contact SBI Customer Care number to know more about SBI NRI Fixed Deposit.
Frequently Asked Questions (FAQs)
Q. How is NRE different than NRO account?
A. Non-Resident Indians can deposit their money in foreign currency in an NRE Account whereas for depositing their money in Indian Rupee, NRO Accounts are used.
Q. Is interest earned in SBI NRI fixed deposit account taxable?
A. Except for NRE deposits & FCNR, interest accrued on all other types including NRO and RFC accounts is taxable as per Income Tax Act, 1961. Interest income on FCNR deposit will be taxable in India if the investor relocates to India.
Q. How can one avoid double taxation?
A. DTAA or Double Taxation Avoidance Agreement benefits NRIs in terms of income tax application. To avail this facility, the applicant must be the resident of any of the countries with which India has signed DTAA. Tax Residency Certificate, Self-Declaration Certificate and Form No.10F must be submitted to avail benefits of this agreement.
Q. What is the applicable tax rate on SBI NRI fixed deposit account?
A. Income tax on NRI FD is taxable at:
- 90% for interest income less than Rs. 1 crore
- 34.608% for interest income worth Rs. 1 crore or more
Q. Is loan against FD available for NRIs investing in SBI fixed deposit schemes?
A. Yes. Loan against fixed deposit is available for NRIs investing in FD schemes by State Bank of India. Though, investors of NRO tax saving scheme are not eligible to avail this facility.
