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 :

i.   The account may be opened by the remittances from abroad or transfer from any F.C. A/C  with any AD branch.

1. 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.
2. The accounts may be maintained in US Dollars, STG. Pound, Deutsche Mark, Japanese Yen & EURO accounts are matured after one, three, six, twelve months.
3. Profit will be paid at Euro Currency deposit rates. The profit amount is exempt from the tax payable under the income tax act.
4. 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.
5. 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.