NFC Deposit Account

NFC Deposit account means Non-Resident Foreign Currency Deposit A/C

NFC Deposit A/C  A/C At a glance

Authorized dealers may open F.C A/C in the name of the followings persons without prior approval from Bangladesh Bank. All Bangladeshi Nationals/persons, including those having dual nationals / ordinarily residing abroad may open in term bearing NFCD A/Cs.

Eligible persons:

(a)      All non-resident Bangladesh nationals and persons including duel nationality & ordinarily residing abroad / working / earn abroad including self-employed, may open the account.
(b)  Bangladesh nationals, serving with Embassies / High Commissions / Staff of Govt. / Semi Govt. / autonomous / nationalized sectors posted / deputed abroad can open A/C.
(c)   Foreign Nationals residing abroad / in Bangladesh, foreign-registered abroad & operating in Bangladesh / abroad.
(d)   Shore staff of Bangladesh shipping companies posted abroad may open the account but the crewmembers are not entitled to open such accounts.
(e)   The account may be opened with funds transferred from existing F.C. accounts maintained by the wage earners with the AD branch in Bangladesh.
(f)   Eligible persons are allowed to open such accounts within six months of their return to Bangladesh.
(g)  In the case of pre-matured repayment, the profit amount will be forfeited.

Terms & Conditions :

1.  The account may be opened by the remittances from abroad or transfer from any F.C. A/C  with any AD branch.
2. Initially with the minimum deposits is an amount of US$ 1000/- & STG. Pound 500/- for Bangladeshis who residing / serving abroad. Also, minimum deposits should be USD 25,000/- or equivalent for foreign national / companies.
3. The accounts may be maintained in US Dollars, STG. Pound, Deutsche Mark, Japanese Yen & EURO accounts are matured after one, three, six, twelve months.
4. Profit will be paid at Euro Currency deposit rates. The profit amount is exempt from the tax payable under the income tax act.
5. If the applicant is abroad, specimen signature of the opener duly verifies by Bangladesh Mission abroad, reputed bank, or any other persons known to the AD branch.
6. A/C holder can freely repatriate the balance & profit accrued thereon, in foreign exchange to the country of residing to anywhere he chooses.

NFC Deposit Account

A Non-Resident Foreign Currency Deposit Account (NRFC Account) is a type of bank account held by non-residents in a foreign currency, usually in the country where the account holder is not a resident. These accounts are typically offered by banks in countries with stable economies and strong banking systems.

Here are some key features of NRFC accounts:

1. Currency: NRFC accounts are denominated in foreign currency, allowing account holders to hold funds in a currency other than the local currency of the country where the account is held. This can be advantageous for individuals who earn income in foreign currencies or want to hedge against currency fluctuations.
2. Interest Rates: The interest rates offered on NRFC accounts may vary depending on the currency and the bank offering the account. Generally, the interest rates on NRFC accounts tend to be higher than those on domestic currency accounts, as banks compete to attract foreign funds.
3. Accessibility: NRFC accounts are often accessible online or through international banking networks, allowing account holders to manage their funds from anywhere in the world. This accessibility is particularly beneficial for individuals who travel frequently or have financial interests in multiple countries.
4. Regulations: NRFC accounts are subject to regulations imposed by both the country where the account is held and the account holder’s country of residence. These regulations may include restrictions on fund transfers, reporting requirements for tax purposes, and compliance with anti-money laundering laws.
5. Tax Implications: The tax treatment of NRFC accounts varies depending on the laws of the country where the account is held and the account holder’s country of residence. Some countries may impose taxes on interest income earned in NRFC accounts, while others may offer tax incentives to attract foreign funds.

Overall, NRFC accounts provide non-residents with a convenient way to hold and manage funds in foreign currencies, offering flexibility, accessibility, and potentially higher interest rates compared to domestic currency accounts. However, individuals considering opening an NRFC account should carefully review the terms and conditions, as well as the regulatory environment, to ensure compliance and maximize the benefits of such accounts.

A Non-Resident Foreign Currency Deposit Account (NRFC Account): Complete Guide

A Non-Resident Foreign Currency Deposit Account (NRFC Account) is a special type of bank account designed for non-resident individuals who wish to maintain their foreign earnings in foreign currency while living abroad. This account is particularly useful for expatriates, foreign workers, and overseas investors who want to safely park their income in foreign currency without being subject to local currency fluctuations or conversion charges.

What is an NRFC Account?

An NRFC Account is a foreign currency-denominated bank account opened in a domestic bank by a non-resident individual. It allows the account holder to deposit, maintain, and withdraw foreign currency freely.

✅ Key Features:

• Denominated in major foreign currencies like USD, EUR, GBP, etc.
• Interest-bearing (based on market rates for foreign currency)
• Fully repatriable (you can transfer funds back to your country anytime)
• Tax benefits may apply depending on the country’s banking regulations
• Withdrawals allowed in foreign or local currency (as per bank terms)

‍ Who Can Open an NRFC Account?

To be eligible for an NRFC account, you typically must be:

• A citizen of the country residing abroad for employment, business, or study
• A foreign national working or residing temporarily outside the country
• A retired expatriate or person of origin returning home with foreign savings

In most countries, residency status as per the central bank or government guidelines is a key determinant.

Types of Currencies Accepted

NRFC Accounts are usually available in the following major currencies:

• US Dollar (USD)
• Euro (EUR)
• British Pound (GBP)
• Japanese Yen (JPY)
• Swiss Franc (CHF)
• And sometimes: Canadian Dollar (CAD), Australian Dollar (AUD)

Types of NRFC Accounts

Banks may offer one or more of the following account types:

Account Type	Description
Savings Account	Earn interest on your foreign currency balance with easy access.
Term Deposit	Fixed interest rate for a defined period (e.g., 3 months to 5 years).
Current Account	Used for frequent transactions, often with no interest.

Benefits of NRFC Account

1. Foreign Currency Protection
   ➤ Avoid exchange rate losses by keeping earnings in foreign currency.
2. Interest Earnings
   ➤ Interest is earned in the same foreign currency, making it attractive for wealth accumulation.
3. Tax Efficiency
   ➤ In many countries, interest on NRFC accounts is tax-free or low-taxed for non-residents.
4. Easy Repatriation
   ➤ Funds are fully repatriable — ideal for individuals planning to return home or invest overseas.
5. Multiple Currency Options
   ➤ Helps diversify holdings in different strong currencies.

Documents Required to Open an NRFC Account

While the exact documentation may vary by bank or country, here are common requirements:

• Valid passport and visa
• Proof of non-resident status (e.g., work permit, residence card)
• Foreign address proof
• Employment letter or proof of foreign income
• KYC (Know Your Customer) documents

⚖️ Regulation and Compliance

NRFC accounts are governed by the central bank or monetary authority of the home country. For example:

• In India, NRFC accounts are regulated by the Reserve Bank of India (RBI)
• In Bangladesh, the Bangladesh Bank sets the policy and compliance framework
• In Pakistan, the State Bank of Pakistan (SBP) governs such accounts

These authorities ensure that the funds are legitimate and comply with anti-money laundering (AML) and foreign exchange laws.

Use Cases for NRFC Accounts

• Saving foreign income for retirement or future investment
• Avoiding local currency devaluation
• Supporting family in the home country through remittances
• Investing in home country assets (e.g., property, stocks) in foreign currency

NRFC vs. Other Non-Resident Accounts

Feature	NRFC Account	NRE/NRO Account (Example: India)
Currency	Foreign currency	Local currency
Interest	Earned in foreign currency	Earned in local currency
Repatriation	Fully repatriable	Varies (depends on type)
Taxability	Often tax-free	Subject to local tax laws
Purpose	Preserve foreign income	Conduct local financial activity

How to Open an NRFC Account Online

Many banks now allow the NRFC account to be opened digitally. The steps typically include:

1. Visit the official bank website or contact their NRFC desk.
2. Fill in an online application form.
3. Upload scanned copies of necessary documents.
4. Complete video KYC or identity verification.
5. Fund the account through international transfer or remittance.

Example: NRFC Account in Bangladesh

In Bangladesh, the Bangladesh Bank allows NRFC accounts to be opened in USD, GBP, or EUR. Key benefits include:

• Full repatriation of funds and interest
• Tax-free interest income
• Used to invest in Wage Earner Development Bonds, US Dollar Premium Bonds, etc.

Visit: https://www.bb.org.bd for more.

Summary Table

Feature	Description
Account Type	Foreign Currency Savings / Term Deposit
Target Audience	Non-resident individuals (expatriates, workers abroad)
Currency Options	USD, EUR, GBP, etc.
Repatriability	Fully repatriable to foreign or home account
Interest Earnings	Yes, in foreign currency
Tax Benefits	Often tax-exempt (depending on national rules)
Regulatory Body	Central Bank of respective country

Conclusion

A Non-Resident Foreign Currency Deposit Account (NRFC Account) is a powerful financial tool for expatriates and global earners. It helps safeguard foreign income, offers attractive interest, and provides financial flexibility with international accessibility. Whether you’re saving for the future, planning investments, or simply managing your wealth in a stable currency, an NRFC account is a smart choice for secure, global banking.