HSBC India's NRO Term Deposit is a term deposit held in India, in Indian Rupees.

You can place an NRO Term Deposit with the balances in your NRO or NRE Savings or Current Account.

Key features:

An NRO Term Deposit gives you higher* post tax returns in India than a NRO or NRE savings / current account. Interest earned on your term deposit can be cumulated and received at the time of maturity or can be received in your NRO account every quarter. Click here to check prevailing interest rates.

• Taxation
  Interest earned is subject to Income Tax deduction at source^#. The permissible remittance from the balances in NRO accounts is up to USD 1 million^{^^}, per financial year for all bonafide purposes.
• Joint Deposit
  You can place the deposit jointly with a Resident Indians or Non-Resident Indians.
• SmartMoney facility
  Availability of overdraft* against your NRO Term Deposits at just 2% over the deposit rate**
• Nomination
  Nomination facility is available on your NRO Term Deposit. Click here to download the nomination form.
• Minimum deposit
  Minimum deposit required is INR 25,000.
• Liquidity
  You can break your deposit before the maturity period (subject to the loss of interest)^.
• Range of fixed tenors
  Tenors range from 7 days to 5 years. Click here to see prevailing tenures and corresponding interest rates.

^# Tax Deduction at Source, when due and applicable will be deducted in accordance with the provisions of the Income Tax Act, 1961 and the Rules thereunder as in force. Such TDS shall be recovered from saving / current / demand deposit a/c(s). Please contact our branch and submit the necessary documents in case lower TDS applies as provided by the relevant tax treaties. These documents should be submitted along with the Account Opening Form and also before the start of each new financial year. The bank reserves its right to reject any such claims. Hence any claim for refund of TDS will lie directly with the Government of India and the bank will not be liable in any manner.

Indian tax information given herein is general and is not meant to constitute, and therefore should not be construed, as advice. The tax consequences are also based on individual facts and circumstances. As such, prior professional tax advice should be sought to fully understand and appreciate the Indian tax implications. We assume no obligation or liability of any nature whatsoever by issuing this document. For US Citizens and US Residents, if necessary, you should consult your tax advisor for questions regarding the US tax treatment of these deposits. If you are resident in any other country, you should consult your tax advisor regarding the tax treatment of these deposits in your country of residence.

* Overdraft available at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India. Terms and Conditions apply.

** Interest on amount overdrawn will be charged at the rate of 2% over the weighted average of the interest rates applicable to the linked fixed deposits subject to a maximum of the Bank's Prime Lending Rate as may be declared by the Bank from time to time. Overdraft available at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India. Terms and Conditions apply.

The Bank, on request from a depositor, would allow withdrawal of a Fixed Deposit before completion of the period of the deposit agreed upon at the time of placement of the deposit subject to penalty on premature withdrawal of Fixed Deposit as may be applicable as per the table appended below (Applicable to NRO Deposits only) -

Penal Rates
DATE OF PLACEMENT OF FIXED DEPOSIT(FD)	FD Value: < INR 1.5 Mn	FD Value: INR 1.5 Mn < INR 40 Mn	FD Value: INR 40 Mn and above
On or before 31 March 2011	1%	1%	1%
On or after 1st April 2011	1%	1.5%	2%

The interest paid will be lower by the Penal Rate (as may be applicable to the value and date of placement of the Fixed Deposit as defined in the above table) than the rate prevailing on the date of placement of the deposit for the period for which the deposit remained with the Bank or the contractual rate, whichever is lower. No interest will be paid on premature withdrawals of deposit which has remained with the Bank for less than the minimum period for which deposits were being accepted for the said currency and deposit type, as on the date of placement of deposit.

NR deposits are offered under the Reserve Bank of India program for Non-Resident Indians and are governed by the rules in effect from time to time relating to such programs, are subject to the sovereign risk arising from, and governed by the laws of, or any changes to the laws of India.