Remittance-Focused FD Comparator (May 2025)
प्रवासी निश्चित निक्षेप तुलना (मे २०२५)
Compare fixed deposit rates specifically designed for Nepali diaspora across major banks. Calculate returns in your local currency with exchange rate risk analysis and tax implications.
Why This Tool Matters
- Nepal receives $10B+ yearly in remittances (30% of GDP)
- No existing tool compares NPR FD rates for diaspora
- Helps diaspora maximize returns on Nepal-bound savings
- Accounts for exchange rate risks and tax implications
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Understanding Diaspora Fixed Deposits in Nepal
Many Nepali banks offer special fixed deposit accounts with higher interest rates for non-resident Nepalis (NRNs) and the diaspora community. These accounts are designed to attract foreign currency into Nepal while providing better returns for Nepalis living abroad.
Key Benefits for Diaspora
Higher Interest Rates
Diaspora FD accounts typically offer 1-2% higher interest rates compared to regular FDs, making them an attractive investment option for Nepalis abroad.
Foreign Currency Deposits
Many banks allow deposits in foreign currencies (USD, GBP, EUR) which are then converted to NPR, simplifying the remittance process.
Simplified Documentation
Banks offer streamlined documentation processes for diaspora, often requiring only passport copies and proof of foreign residence or employment.
Repatriation Options
Some banks offer options to repatriate both principal and interest in foreign currency, providing flexibility for diaspora investors.
Exchange Rate Considerations
When investing in NPR from abroad, exchange rate fluctuations can significantly impact your returns. A weakening NPR means your foreign currency will buy more NPR, but when converting back, you'll receive less foreign currency. This tool helps you understand these risks.
Tax Implications
In Nepal, a 15% tax is deducted at source (TDS) on interest earned from fixed deposits. This applies to all investors, including diaspora. Our calculator automatically factors in this tax deduction to give you accurate after-tax returns.
Frequently Asked Questions
Which bank gives highest FD rates for Nepali diaspora?
As of May 2025, Global IME Bank offers the highest rate at 9.75% for 1-year FDs to Nepali diaspora, followed by NIC Asia Bank (9.60%) and Prabhu Bank (9.55%). For longer terms, rates can go up to 10.75% for 5-year deposits.
How is FD interest taxed in Nepal?
Nepal deducts 15% tax (TDS) on FD interest for all investors, including diaspora. For NPR 1 lakh FD earning NPR 8,000 interest, NPR 1,200 will be deducted as tax. This is automatically calculated in our tool.
Can I open a diaspora FD account remotely?
Yes, most Nepali banks allow diaspora to open FD accounts remotely through their representatives in Nepal. Some banks also offer online account opening services specifically for NRNs and diaspora.
How does exchange rate risk affect my investment?
Exchange rate fluctuations can significantly impact your returns when converting back to your local currency. Our tool includes an exchange rate risk analysis to help you understand potential scenarios.