Things You Should Know

  • Eligibility

    Only Non-Resident Indians (NRIs) with an NRO Account can open this FD

  • Investment Limits

    Minimum deposit of ₹25,000 and maximum of ₹1.5 lakh for 5 years

  • Lock-in Period

    FD has a fixed 5-year lock-in and cannot be withdrawn prematurely

  • Repatriation

    Funds up to USD 1 million per financial year can be repatriated

  • No Auto-renewal

    Auto-renewal facility is not available for this deposit

    Over draft facility is not available

  • One-time deposit

    Only lump sum deposits are allowed. Interests earned are taxable

About NRO Tax Saver FD

Who Can Apply

Non-Resident Indians (NRIs) holding an NRO Account. You must make a one-time lump sum deposit between ₹25,000 and ₹1,50,000 for a 5-year lock-in period.

Easy Application Process

Open the deposit online or walk into any of your nearest branch and submit valid PAN and KYC documents. An e-confirmation on your registered email ID will be sent within 1 business working day.

Interest Pay-out Options

Choose to receive interest monthly, quarterly, or opt for reinvestment into the principal.

Tax and Repatriation Benefits
  • Get up to ₹1,50,000 deduction under Clause 123 (only under the old tax regime)
  • Both principal and interest are eligible for repatriation (up to USD 1 million per financial year)
  • Interest earned is taxable in India
  • Applicable Tax Deducted at Source (TDS) is levied as per prevailing rates

FAQs

What is an NRO 80C Tax Saver Fixed Deposit?

It is a fixed deposit for NRIs that offers tax-saving benefits under Section 80C along with attractive interest rates. You can invest a lump sum amount between ₹25,000 and ₹1,50,000 for a lock-in period of 5 years and choose from flexible interest pay-out options.

Who can open an NRO 80C Tax Saver FD?

Only Non-Resident Indians (NRIs) holding an NRO account with ICICI Bank can open this FD. It allows joint holding with either a resident Indian or another NRI.

Can I withdraw the Tax Saver FD before 5 years?

No, premature withdrawal and auto-renewal are not allowed. The FD comes with a mandatory 5-year lock-in period, as per tax-saving guidelines.

Is the interest earned taxable?

Yes, interest earned on an NRO (Non-Resident Ordinary) account is taxable in India. It is subject to Tax Deducted at Source (TDS) as per applicable rates. The income must be reported in India, and tax liability depends on total income and applicable tax provisions.

How is the interest paid out?

You can choose from monthly, quarterly, or reinvestment options for interest payout. 

Is premature withdrawal allowed on NRO Tax Saver FD and what are the tax implications?

No, premature withdrawal is not permitted for NRO Tax Saver Fixed Deposits, as they come with a mandatory lock-in period. The invested amount qualifies for a tax deduction under Section 80C*, but the interest earned remains taxable in India under applicable income tax rules.

*This Section is now replaced by Clause 123 of Schedule XV of the Income Tax Act 2025, which is applicable from 1st April 2026 onwards.

Note: The deductions under Clause 123 of Schedule XV are available only under the old tax regime. Additionally, you need to opt for the old tax regime. Otherwise, the new tax regime is the default choice as per the Income Tax Act 2025.

How can NRIs claim tax benefits under DTAA on NRO FD?

NRIs can claim tax benefits under the Double Taxation Avoidance Agreement (DTAA) by submitting a valid Tax Residency Certificate (TRC), Form 41, and a self-declaration to the bank. This may help reduce TDS rates or avoid double taxation in both India and the country of residence.

Disclaimer

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