Facebook TwitterLinkedInYoutubewhatsapp Start Planning for your Financial goals
Schedule Your Free Consultation
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Holistic investment planners, financial planning Chennai, Private wealth management Chennai

Financial Planning chennai India, Private wealth management chennai India, Investment Advisory India, Systematic Investment Plan, Mutual Fund SIP, Mutual Fund ELSS, Tax Saving scheme

  • Home
  • About Us
    • Who we are & What we do
    • Services
      • Financial Road Map
      • Retirement Roadmap
      • Asset Allocation Plan
      • Webinar
      • Money Management
      • Wealth Management
    • In the Media
    • Testimonials
    • What Makes Us Different
    • How we can help you
    • Specialties
    • Honors and Awards
    • Vision & Mission
  • Resources
    • Blog
    • Articles
    • Podcast
  • Ideal Client
  • Contact Us
NRI Recurring Deposits

How NRIs can make use of Recurring Deposits?

by Holistic Leave a Comment | Filed Under: NRI investment

For NRIs looking forward to make huge savings with small monthly investments, the Recurring Deposits seems to be an excellent option. A recurring deposit account is one that enables the depositor to save by paying an agreed fixed monthly sum for a required period. This type of an account goes well with people with fixed income groups.

Recurring Deposits yield the compound interest on a quarterly basis. The rate of interest is dependent on the period of the monthly deposits. Longer the time of your monthly deposits agreed upon, higher will be the interest rate pertaining to rules.

Understanding Recurring Deposits (RDs) in Detail

RDs offer its customers an approach, based on a precise goal, for investments at alluringly high rates. Thus, no matter you want to build a fund for your child’s education, or buying a house/car, or a dream holiday, RD will help you save a little every month towards achieving your financial goals.

Whatever your purpose/goal may be, an RD scheme will ensure you have sufficient funds at the time of need, to reach your goals.

RDs for NRI customers

For NRI customers, investment options could be NRE Recurring Deposit or NRO Recurring Deposits. Let us understand what each of these means and has to offer to the NRIs.

    • NRE RD Accounts:

In this, the investments towards your deposit installments have to come from the NRE Accounts only. NRE are non-resident external accounts. The interest from an NRE RD is free from tax in India, and is freely repatriable.

    • NRO RD Accounts:

For these accounts, the investments towards the deposit installments can come either from NRE or NRO accounts. NRO are non-resident ordinary accounts. The interest from NRO RDs is taxable at a rate of 30%, plus the additional CESS. This is repatriable, subject to certain featured requisites.

What to choose between NRE RD and NRO RD?

Thus, the source of investment funds is a factor to decide, what option out of NRE RD and NRO RD you can opt for. If, for example, your funding is from an oversea source, you should prefer NRE Recurring Deposits. Whereas, if you are receiving your regular investments from rent or any other income source in India, then you can go for putting the same into NRO RD Accounts.

Advantages of RD to NRI investors

  • While the interest rates reaching a peak and then heading their way down, it is probably the appropriate time to freeze the investments into some good debt instruments. This may be another significant factor, while considering about RD investments.
  • Another good thing about an RD account is that the monthly investments are not too big, and one gets benefit of the same interest rates as on FDs, without any mandate to commit the whole amount in advance.
  • One more advantage with an RD account if in case you miss one or two of your installments owing to certain constraints, your deposit will be due for repayment on maturity. The same RD will mature on the completion of the contracted tenure, even if some of its installment payment is still pending. The actual maturity amount will of course differ from that mentioned in the Deposit Advice. This happens since you did not pay all of your installments. Certain banks do charge penalty for delayed/missed installments, however most banks do not. To ensure of the same, do read and note the bank conditions clearly.

Interest Calculation for RD

The calculation of RD interest rates is in accordance with the directions of the Banks Association in India. The interests applicable for both the NRE RD and NRO RD are same as that of NRE FD and NRO FD respectively. The computation of interest on deposits takes place in every quarter, according to the rates applicable.Another point to remember is that the once the installment amount is fixed, it remains so without any later date modifications. Therefore, it is important to be sure of your committed amount.

Points to ponder over by NRI before investing in RD

  • RD does not permit the partial payment of installments.
  • In case of NRE RD, the minimum and maximum lock-in period is 1 and 10 years respectively. If in case, one terminates his/her RD prematurely within a year, he/she will get their respective principal amount back without any interest.This holds true, as the interest is applicable only on maturity.
  • RDs have nomination and joint account facility.
  • The date of the RD installment depends on the account opening date.

RD seems a clear option, when you do not have a lump sum for investment and you want to be absolutely safe. If you are REALLY inclined to make a solid difference in achieving your financial goals by creating a financial plan, then I would suggest you to test-drive our services by opting for

If you have any comments or questions, write them in the comment box below.

Or are you interested in creating a Comprehensive Financial Plan for your financial goals?

Skip the queue by registering for your 30 Minute FREE Financial Plan Consultation. Click the ‘Book Now’ button below.

Reader Interactions

Previous article: What you need to know about Floating Rate Mutual Funds?
Next article: How to choose the right term insurance for you?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Client Login

Recent Posts

  • LIC Dhan Varsha Insurance Plan: Complete Analysis & Review – Should you buy? 
  • Tata AIA Life Insurance Smart Value Income Plan: An In-depth & Insightful Review
  • Mastering Islamic Finance: The Ultimate Guide to Sharia Investment
  • Smart Financial Planning Tips for Beginners – A Complete Guide
  • SIP Investment Mistakes! How to Overcome Them?
Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Footer

  • Articles
  • Gallery
  • Ideal Client
  • Jobs(Full Time)
  • Podcast
  • Services
  • Testimonials

Connect With Us

Holisticinvestment.in
10/15, Second Cross Street,
Seethammal Extn.,
Teynampet,
Chennai – 600 018,
INDIA.

Copyright © 2022. Holisticinvestment.in | All rights reserved.    Cared with ❤ by T-Square Cloud

×