Get Lowest Rates for Health Insurance

Mediclaim Plans starting @ Rs 250* / month

I hereby authorize Coverfox to communicate with me on the given number for my Insurance needs. I am aware that this authorization will override my registry under NDNC.

Pros and Cons of FCNR Account

As an NRI, you have multiple options to select from when it comes to opening a deposit account. To name a few, the options are:

NRE or NRO Savings Account
NRE/NRO Fixed Deposit Account
FCNR Fixed Deposit Account All of these services are available in most of the banks across India. If you are an NRI, here are a few questions to consider before opening a deposit account of any kind.
Can I deposit both my earnings (from India and abroad) into a single account?
Can a relative of mine operate the account on my behalf?
What are the different types of currency that can be held in my NRO account?
Will the principal amount/interest be subject to income tax?
Can I repatriate the deposit to the source country?

What is a FCNR Account?

A FCNR account stands for Foreign Currency Non-Residential Account. It is a term deposit account offered to NRE/NRO account holders and is similar to a regular fixed deposit. A FCNR account is a lucrative option for NRIs in terms of attracting foreign remittances. The interest rates offered by a FCNR account depend on the type of currency held and the bank.

Explore more on Saving Schemes

Personal Finance NPS Login Registration | Saving Schemes | UAN epf mobile register change
EPF e Passbook | EPF Form 31 | How to Correct Your Name in EPF Online
Break up of epf contribution | EPF form 19 | Top gold saving schemes in India
UAN Registration | Download and Print UAN card | EPF Claim Status
PPF vs NSC | EPF Form 11 | HDSC National Pension Scheme
Employees Deposit linked Insurance scheme | HDFC PPF Account | EPF Form 2
APY vs- NPS | Pran Card | How to register epf grievance online
EPF vs EPS | EPF Form 5 if | EPF Form 5
PF Withdrawal Rules | PF Withdrawal Rules | PF Withdrawal Rules
PF Calculator | EPFO login | NPS Customer Care

Explore more on Gold Rate

GRT jewellers gold schemes | Understanding hallmark kdm 916 varities of gold | Kalyan jewellers gold schemes
Gold Rate in Tirupati | SBi bank gold schemes | Gold Rate in Punjab
Tanishq gold schemes | Gold coin rate in post office | Gold Rate in Tumkur
Gold Rate in Anantapur | Gold Rate in Kurnool | Gold Rate in Berhampur
Malabar gold schemes | Gold Rate in Sangli Miraj Kupwad | Gold Rate in Salem
Gold Rate in Asansol | Gold Rate in Eluru | Gold Rate
Gold rate today | Silver Rate in vijayawada | Silver Rate Today

Explore more on Mutual Funds

Direct vs regular mutual funds | Mutual funds vs fixed deposits | Registrars cams and Karvy
Best mid cap mutual funds | SBI emerging businesses fund | SBI mutual fund customer care number
ICICI mutual fund customer care number | Birla sun life mutual fund customer care number | HDF mutual fund customer care number
KYC form | UTI mutual fund customer care number | Mutual funds vs hedge funds
Birla sun life top 100 fund | Real estate vs mutual funds | Axis bank sip plan | Mutual Funds

Explore more on Fixed Deposit

Monthly interest payout fd | state bank of hyderabad fd interest rates
ICICI nri fd rates | Flexi Fixed Deposit | Syndicate bank fd rates
FD schemes for children | Saraswat Bank fd rates | Certificate of Deposit
Fixed deposit receipt fdr | fixed deposit double scheme | Andhra bank fd interest rates
SBI nri fd rates | Credit card against fixed deposit | fixed deposit rules and regulations
Yes bank fd rates | Indusind bank fd interest rates | Fixed Deposit

Explore more on Tax

Section 44a | 7th CPC Fitment Table | SAC Codes GST Rates for Services
Haryana Road Tax | CSD Price List for Cars and Bikes | Taxable and Non Taxable Allowance for Salaried Individual
Reverse Charge GST | Difference Between Take Home Net Gross salary and CTC | Different Uses of ITR1 ITR2a and ITR2
7th CPC Travelling Allowance | Income Tax Assessment | Professional Tax Kerala
Exemption on Medical Reimbursement | Impact of GST on Rent | Sextion 40a-3
List of 7th Pay Commission Allowances | Section 154 of the Income Tax Act | What is a stipend is it Taxable
SGST CGST IGST | Road Tax Telangana | Medical Allowance
City Compensatory Allowance | Section194j | Road Tax Jharkhand
TDS Return Form | Section-119 | Road Tax Rajasthan
Road Tax Delhi | Goods Exempted Under GST | Tax Benefits on Tuition and School Fees
7th CPC LTC Rules | Capital Gains Calculator | Income Tax Customer Care Number
Road Tax Odisha | Luxury Tax in India | Income Tax Return Filing for Insurance Agents
Additional Depreciation Income Tax Act | Entry Tax in Karnataka | How to Download ITR-V Acknowledgement
7th CPC Children Education Allowance | Nil Tax Return | Section 80ccg
Forms 3CA 3CB 3CD 3CE | Banglarbhumi | Coimbatore Property Tax
Jurisdiction Income Tax | Ahmedabad Municipal Corporation Property Tax | Difference Between TIN and TAN
Sugam ITR 4S | Taxability of Prequisites | Local Body Tax
TDS on FD | How to e-File Revised Return of Income Tax | Income Tax Exemptions for Political Parties in India
IMC Property Tax in Indore | KMC Property Tax | Section 80gga
Charitable Trusts NGO Income Tax Benefits | Difference Between GPF and PPF | Income Tax Notice to File Returns Compliance Form
Income Tax Registration Login | 7th Pay Commission | Goods and Services Tax GST
Income Tax | Property Tax | Road Tax | Tax

Other Core Categories

Car Insurance | Two Wheeler Insurance | Health Insurance | Term Insurance | Life Insurance

| Investment Plans | Used Cars in India | New Car Insurance

FCNR Account - Advantages & Disadvantages

The advantages of a FCNR account are

FCNR accounts are protected against forex rate risks. The deposit is maintained in a foreign currency.
The interest earned from a FCNR account is exempt from Income Tax.
You (NRI) can open a FCNR account with two or more NRI joint account holders.
You have the option to select multiple currencies - Pound Sterling, US Dollar, Yen and Euro.
With a FCNR account, you can easily repatriate the principal as well as the interest earned to the country of residence/origin.
The tenure ranges from 1 year to 3 years.
The interest rates are compounded on a half-yearly basis and is payable after the end of the first year.
You can apply for a loan against the funds held in your FCNR account. The loan amount will be in INR and can be repaid from the maturity proceeds.

The disadvantages of a FCNR Account are

If the FCNR deposit is held within a weak bank, the bank might be unable to pay back the proceeds on maturity.
In case of a financial meltdown, the banks will not be able to repatriate the funds.
If the deposit is withdrawn within 1 year, no interest is payable.
A FCNR deposit is offered for term deposits only.
Penalties are applicable in case of premature withdrawal.

FAQs on Pros and Cons of FCNR Account

Is FCNR a good investment?

Yes, if you are an NRI looking for a term deposit scheme, a FCNR term deposit is a suitable option.

Are FCNR deposits repatriable?

Yes, with a FCNR account, you can easily repatriate the principal as well as the interest earned to the country of residence/origin.

In which currencies FCNR deposit can be opened?

A FCNR deposit can be opened in many different currencies. To name a few: USD, Euro, SGD, Pound Sterling, etc.