An NRE savings account allows Non-Resident Indians to save and manage their foreign currency earnings in a bank in India. Your foreign currency is converted into Indian Rupee (INR) at the time of deposit in an NRE account. NRIs can enjoy tax-free interest on NRE accounts. NRE savings account interest rates vary from bank to bank, ranging from 2.5% to 7%. p.a.
Let’s find out more about NRE savings account interest rates offered by top Indian banks.
SBNRI is a business partner of leading Indian banks. An NRI can apply for an NRE account with one of these Banks by clicking the button below.
NRE Savings Account Interest Rates 2023
The following table provides a comparison of NRE savings account interest rates from different banks, in 2023:
| Bank | NRE Savings Account Interest Rate (p.a.) |
|---|---|
| State Bank of India | – 2.70% p.a. for balance < Rs. 10 cr – 3.00% p.a. for balance Rs. 10 cr and above |
| HDFC Bank | – 3.50% (Balance of and above Rs. 50 lakh) – 3% (Balance below 50 Lakhs) |
| ICICI Bank | – 3% (Balance below 50 Lakhs) – 3.50% (Balance above 50 Lakhs) |
| Axis Bank | – 3% (Balance below 50 Lakhs) – 3.50% (Balance above 50 Lakhs to Rs. 800 cr.) |
| Kotak Mahindra Bank | 3.50% |
| Yes Bank | – 4% (up to 1 lakh)- 4.25% (Rs. 1 lakh to 5 lakh)- 5% (Rs. 5 lakh to 10 lakh)- 6% (Rs. 10 lakh to Rs. 1Cr)- 6.25% (Rs. 1 cr to 10 cr)- 6.00% (Rs. 10 cr to Rs. 25 Cr) |
| Federal Bank | 3.05% – 6.00% |
| RBL Bank | 4.00% to 7.00% |
| IDFC First Bank | – 4% (<= Rs. 10 lakh) – 6.75% (>Rs. 10 lakh <= Rs. 50 cr) – 5.00% (>Rs. 50 cr <= Rs. 100 crore) – 4.50% (>Rs. 100 crore <= Rs. 200 crore) – 3.50% (> 200 crore) |
| Bank of Baroda | 2.75% |
| SBM | Up to 5% |
| IndusInd Bank | Up to 6% |
| DBS Bank | 3.5% |
| Canara Bank | 2.90% – 4.00% |
| Indian Overseas Bank | Up to 2.90% |
| Indian Bank | Up to 3.50% |
| IDBI Bank | 3.00% to 3.25% |
| Punjab National Bank | – 2.75% to 2.80% |
| Union Bank of India | 4% |
Note: These rates are indicative and subject to change according to the bank’s policy and RBI’s guidelines.
NRE Savings Account Interest Rates by Top 5 Banks
SBI NRE Savings Account Interest Rates
SBI NRE savings account interest rate are listed below:
| Balance | Interest Rate (p.a.) |
|---|---|
| Less than Rs. 10 cr | 2.70% |
| Rs. 10 cr and above | 3.00% |
HDFC NRE Savings Account Interest Rates
HDFC Bank NRE savings account interest rate are listed below:
| Balance | Interest Rate (p.a.) |
|---|---|
| Less than Rs. 50 lakh | 3.00% |
| Equal to and above Rs. 50 lakh | 3.50% |
ICICI NRE Savings Account Interest Rates
ICICI Bank NRE savings account interest rate are listed below:
| Balance | Interest Rate (p.a.) |
|---|---|
| Less than Rs. 50 lakh | 3.00% |
| Equal to and above Rs. 50 lakh | 3.50% |
Axis Bank NRE Savings Account Interest Rates
Axis Bank NRE savings account interest rate are listed below:
| Balance | Interest Rate (p.a.) |
|---|---|
| Less than Rs. 50 lakh | 3.00% |
| Equal to and above Rs. 50 lakh | 3.50% |
Yes Bank NRE Savings Account Interest Rates
Yes Bank NRE savings account interest rate are listed below:
| Balance | Interest Rate (p.a.) |
|---|---|
| Up to 1 lakh | 4% |
| Rs. 1 lakh to 5 lakh | 4.25% |
| Rs. 5 lakh to 10 lakh | 5% |
| Rs. 10 lakh to Rs. 1Cr | 6% |
| Rs. 1 cr to 10 cr | 6.25% |
| Rs. 10 cr to Rs. 25 Cr | 6.00% |
Benefits of NRE Bank Account
NRE (Non-Resident External) savings accounts offer several benefits. Here are some of the major advantages:
- Easy Repatriation: The principal and interest earned in NRE accounts are freely repatriable, which means that the account holder can transfer the funds back to their foreign account without any restrictions.
- Tax Exemption: Both the principal amount and interest earned in NRE savings accounts are exempt from income tax in India. They’re also exempt from wealth tax and gift tax.
- Joint Account: An NRI can open an NRE account with another NRI or with a close relative residing in India (on a ‘former or survivor’ basis).
- Deposit Foreign Currency: NRIs can deposit foreign currency in an NRE account, which will be converted into Indian Rupees at the time of deposit.
- High Interest Rates: NRE savings accounts usually offer attractive interest rates up to 7% p.a. which are much higher as compared to savings accounts in many foreign countries.
- Nomination Facility: NRE accounts have the nomination facility, and in the event of the death of the account holder, funds can be repatriated to the nominee abroad.
- Internet and Mobile Banking: Like any other bank account, NRE accounts also come with Internet and Mobile banking facilities, which makes it easier to manage the account from anywhere.
Due to lots of information and documentation required to apply for NRE accounts, NRE account opening process is lengthy and cumbersome elsewhere but you can download SBNRI App to apply for an NRE account with nominal documentation in just 10 minutes.
You can also click on the button below to open an NRI account. Also visit our blog and YouTube Channel for more details.
