Indian Rupee Deposits

HSBC's NRE Term Deposit is a term deposit held in India, in Indian Rupees. You can place an NRE Term Deposit with your foreign currency earnings.

The deposit is maintained in Indian Rupees. Therefore the money you deposit in foreign currency is converted into Indian Rupees, as per the prevailing foreign exchange rate**.

Know more

• Features & Benefits
• Eligibility
• How to open a Fixed Deposit Online
• Interest Rates
• Service Charges and Fees

 

Features & Benefits

• Attractive interest rates - Attractive interest rates make NRE Term Deposits a preferred choice to park your foreign currency earnings converted in Indian Rupee. Interest can be cumulated and received at the time of maturity or can be received in your NRE account every quarter. Click here to check current Interest Rates.
• Freely Repatriable - You can always convert the funds back to foreign currency and transfer it out of India, since both principal and interest earned are freely repatriable.
• Tax free - Both principal and interest are tax free* in India.
• Joint Account - You can hold the account/deposit jointly with Resident Indians^{^^} as well as other NRIs.
• Nomination facility is available on the NRE Term Deposit.
• Liquidity - You can withdraw your deposit before the maturity period^.
• Overdraft facility - Avail of overdraft# (subject to a maximum of INR 100 lacs) against your NRE deposits.
• Range of tenures - Tenures range from 1 year to 3 years.

 

^{^^} NRE / FCNR Accounts opened / held jointly with resident close relative (relative as defined in Section 6 of the Companies Act 1956), can be operated only on 'Former or Survivor' basis.

** Exchange rates are subject to change on a daily basis.

* Indian tax information given herein is for general information only and is not meant to constitute, and therefore should not be construed, as advice on tax matters. Prior professional tax advice analysing individual facts and circumstances should be sought before taking any decision. As the tax laws keep changing by virtue of amendments in law, issue of administrative circulars and notifications and court rulings, there can be no assurance about the validity of the tax information contained in this document subsequent to its release. If you are tax resident in any other country, you should consult your tax advisor regarding the tax treatment of these deposits in your country of residence.

^ Interest on NRE deposits will be paid on completion of each year. In case of a premature withdrawal within a year, no interest will be payable.
The Bank, on request from a depositor, may at its discretion allow withdrawal of a term deposit before completion of the period of the deposit agreed upon at the time of placement of the deposit. For term deposits that are prematurely encashed, penal interest @1% will be levied. The interest paid will be 1% lower 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.

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

 

Eligibility

Minimum deposit required
NRE Term Deposit	INR 25,000

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

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

Know more

• Features & Benefits
• Eligibility
• How to open a Fixed Deposit Online
• Interest Rates
• Service Charges and Fees

 

Features & Benefits

• Higher returns, Attractive interest rates - 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 current Interest Rates.
• Taxation - Interest earned is subject to Income Tax deduction at source#. Remittance^^ from the balances in NRO accounts up to USD 1 million is permissible, per financial year for all bonafide purposes.
• Joint deposit- You can place the deposit jointly with other Non-Resident Indians only.
• SmartMoney facility - Avail of overdraft against your NRO Term Deposits at just 2% over the deposit rate**
• Nomination facility is available on your NRO Term Deposit.
• Liquidity- You can withdraw your deposit before the maturity period^.
• Range of tenures - Tenures range from 7 days to 5 years.

 

#TDS, 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 for general information only and is not meant to constitute, and therefore should not be construed, as advice on tax matters. Prior professional tax advice analysing individual facts and circumstances should be sought before taking any decision. As the tax laws keep changing by virtue of amendments in law, issue of administrative circulars and notifications and court rulings, there can be no assurance about the validity of the tax information contained in this document subsequent to its release. If you are tax resident in any other country, you should consult your tax advisor regarding the tax treatment of these deposits in your country of residence.

** 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. HSBC India is not regulated in Canada. 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.

*** As per current local regulations the permissible remittance from the balances in NRO accounts is up to USD 1 million or equivalent in your local currency, per financial year for all bonafide purposes. The remittances (net of applicable taxes) will be allowed to be made on production of an undertaking by the remitter and a certificate from a chartered Accountant in the prescribed formats.

NR deposits are under the Reserve Bank of India programme for Non-Resident Indians and are governed by the rules in effect from time to time relating to such programmes. Deposits are subject to the sovereign risk arising from, and governed by the laws of, or any changes to the laws of India. NRI Services are provided by HSBC India. HSBC India is the branch of The Hongkong and Shanghai Banking Corporation Limited and HSBC India is not regulated in Canada. NR deposits with the Bank in India are not insured by Canadian Deposit Insurance Corporation (CDIC), nor by any other insurance company or corporation outside India and are payable only at the branch of the Bank in India where the deposit is made. You should consult your tax advisor for the Canada treatment of income from these deposits.

 

Eligibility

Minimum deposit required
NRO Term Deposit	INR 25,000

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