Wednesday, February 12, 2014

Yes, Transfer Money form NRO to NRE Saving Account, FCNR is Allowed

Not many NRIs (Non-resident Indians) knows that, from May 2012, NRI can transfer fund from NRO account to NRE account in India. Earlier this was not the case though you can transfer funds from NRE to NRO account, the reverse was not allowed. The only way to fund your NRE saving account was through your offshore income earned in foreign currency.

Saturday, February 8, 2014

Can I break FCNR Fixed Deposit before Maturity?

It depends on the bank to bank, most of the bank doesn't allow you to break your FCNR fixed deposit if it's done for more than 3 years, but you can do premature withdrawal if its done for less than 3 years. Most of the bank including ICICI, HDFC and Kotak Mahindra doesn't pay any interest if you break your FCNR term deposit within a year. If you break your FCNR FD after year, you will likely get less interest rate than promised, mostly what is equivalent to the period money remained in the Bank. So, make sure you check with your relationship manager about premature withdrawal penalty before opening an FCNR fixed deposit.