NRO Fixed Deposit Account

Fixed deposits below INR 1 crore can be booked online. While booking online, please note the interest rate on offer, as all interest rates are subject to change from time to time. The interest rates for bulk deposits of INR 1 crore or above may change at daily frequencies and you may contact your relationship manager or nearest bank branch to know the interest rate offered by the Bank.

Deposits placed for 1 year/12 months will have 365 days effective 1 March 2016.

Customers registered for online banking can view interest rates by logging on to online banking.

Resident / NRO Deposits are subject to TDS, where applicable. 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.

With effect from 1 April 2010, interest on savings bank accounts will be calculated on daily product basis. The interest will be credited to your account on a quarterly basis as per RBI Master Direction on Interest on Deposits dated 3 March 2016 with effect from 1 July 2016. For the period after 1 July 2016, savings account interest for the quarter year from July to September would be credited in the following month of October and interest for the quarter year from October to December would be credited in the following month of January. Method of interest rate calculation:

i) Rupee Time deposits held in Domestic, Ordinary Non-Resident (NRO) and Non-Resident (External) NRE Accounts - In case of cumulative deposits, interest is compounded quarterly and the basis of interest calculation is 28-31/365. For term deposit with tenor less than three months or where the terminal quarter is incomplete, interest is calculated proportionately for the actual number of days reckoning the year at 365 days (365 days for leap years).In case of non-cumulative deposits, interest is paid out quarterly or half yearly as preferred by customer. This is effective for all Term Deposits placed / renewed on or after 20 January 2009.

ii) FCNR Deposit Accounts - In case of cumulative deposits, the interest on the deposits for more than one year accepted under this scheme is compounded at intervals of 180 days each and thereafter for remaining actual number of days. In case of non-cumulative deposits, interest is paid out half yearly.

Interest rates are subject to change without any prior notice

You can open a joint account with another NRI or a resident Indian.

If the joint account holder is a resident Indian, the account must be operated on a former or survivor basis. This is where only one person, the 'former' (the NRI), can operate the account while they're alive. If the former dies before the 'survivor' (the other joint account holder), the survivor can take over.

To open a joint account, you and the joint account holder will need to come into an HSBC branch in India or overseas. If it's overseas, please make an appointment first by contacting us or your nearest branch directly.

You can grant a power of attorney (also known as a 'POA') to a family member in India, which gives them the power to perform certain transactions with your account.

You can set up a power of attorney by visiting one of our branches, either with a completed power of attorney form or without one (you'll need to complete one in branch if you don't have one). Please contact us for more details or to arrange an appointment.

A nominee is someone who would take control of your account if you were to die.

You can add a nominee to your account quickly and easily through online or mobile banking, or by visiting one of our branches.

An NRE deposit account lets you keep foreign income in an account in India, by converting it to rupees at the current exchange rate. It's most useful if you have income from outside India that you want to bring into India as a non-resident. Both the principal and any interest earned is tax free.

An NRO deposit account is best suited to people who want save their local income, such as rents, dividends or investments. These are subject to tax, like any other earnings in India.

You can deposit money into an NRO Fixed Deposit Account:

Yes, you can transfer up to USD1 million per tax year to an NRE account or accounts outside of India[@nri-nro-remittance]. You'll need to provide the relevant tax documentation (a 15CA and/or 15CB form), which proves the source of funds and that any necessary taxes have been paid in India.

Yes, you can. However, if you withdraw your money early, there will be a 1% penalty on your interest rate for premature withdrawal. For example, if you were supposed to get a rate of 2.00%, you'll get 1.00% instead.

Partial withdrawals are not allowed.

Yes, interest earned on NRO fixed deposits is taxable in India.

The interest is subject to Tax Deducted at Source (TDS) at applicable rates.

You can book NRO fixed deposits in INR only.