Fixed deposits are one of the most preferred investment options in India because of the nominal risk and guaranteed returns. Like resident Indians, Non-Resident Indians (NRIs) are also investing in NRI (NRE, NRO & FCNR) fixed deposits to save and manage their foreign income in India. NRE fixed deposits are similar to regular term deposits, opened using NRE accounts. All NRIs and PIOs can invest in NRE FDs in India. Indian banks and NBFCs (Non-Banking Financial Companies) offer attractive NRE Fixed Deposit rates, which are virtually tax-free.
NRI Fixed Deposit
NRI Fixed Deposits are the most sought after medium for NRI Investments in India. The NRI Fixed Deposits can be opted with the following 3 types of NRI Accounts:
- Non-Resident External (NRE) Account
- Non-Resident Ordinary (NRO) Account
- Foreign Currency Non-Resident (Bank) [FCNR(B)] Account
Let’s understand these accounts in brief:
- Non Resident External (NRE) Fixed Deposit: The NRE Fixed Deposit is used for parking the funds that you earn outside India. You can earn an interest up to 7.81% which is tax-free in India and both the principal amount as well as the interest can be repatriated completely. Let’s explore the top Indian banks and see who are providing the highest Fixed Deposit Rates in India for NRI on NRE FDs:
Fixed Deposit Rates in India for NRI: NRE FD
|Banks||NRE FD Interest Rates|
|Federal||6.75% – 7.25%|
|SBI||6.25% – 6.75%|
|Citibank||3.50% – 7.25%|
|Bank of Baroda||6.25% – 6.75%|
|Canara Bank||6.50% – 7.15%|
|Indian Bank||6.10% – 6.50%|
|ICICI||6.90% – 7.00%|
|HDFC||6.00% – 7.00%|
|Indian Overseas Bank||6.40% – 7.00%|
|Punjab National Bank||6.50% – 7.25%|
|IDBI Bank||6.25% – 6.75%|
|Kotak||6.25% – 7.10%|
|DCB||7.25% – 7.85%|
|Axis Bank||6.75% – 7.26%|
|DBS Bank||5.25% – 6.50%|
|Union Bank of India||6.30% – 7.30%|
|United Bank of India||–|
|SBM||6.5% – 7.2%|
|IndusInd||7.00% – 7.50%|
|RBL||7.00% – 7.80%|
|IDFC||6.75% – 7.50%|
|Central Bank of India||–|
|Deutsche Bank||6.75% – 7.50%|
- Non Resident Ordinary (NRO) Fixed Deposit: The NRO Fixed Deposit is used to maintain the income for an NRI that is generated in India. It can come from any property that you have in India in the form of rent or maybe your pension etc. You can earn upto a 7.30%* interest rate on these accounts. Although, the interest that you earn on the funds is taxable in India at 30% along with surcharge and cess. You can later opt for a Tax Refund while filing your taxes as per your tax slab. Glance through the below mentioned table to check which Income Tax Slab you fall in.
|Income Tax Slab||Tax Rate|
|Up to 2.5 Lakhs||Nil|
|2.5 Lakhs to 5 Lakhs||5%|
|5 Lakhs to 7.5 Lakhs||10%|
|7.5 Lakhs to 10 Lakhs||15%|
|10 Lakhs to 12.5 Lakhs||20%|
|12.5 Lakhs to 15 Lakhs||25%|
|15 Lakhs and above||30%|
- Foreign Currency Non-Resident (Bank) [FCNR(B)] Fixed Deposit: The FCNR (B) Fixed Deposit is a term deposit account in USD, GBP, EUR, JPY, AUD, CAD, SGD, HKD, and others. The ‘term’ in a term deposit account is a fixed tenure of up to 12 months, 24 months, 36 months, 48 months or 60 months that can be chosen by the NRIs at the time of account opening. You can earn up to 3%* interest on deposits. The interest income is not taxable in India and both the principal amount as well as the interest are completely repatriable.
After opening the NRI Bank Accounts, you can directly opt for a Fixed Deposit online using your mobile phones under the type of account chosen. It’s too easy and convenient. Still confused which FD to opt for? Let’s us stroll through a comparative analysis of these NRI FDs here:
|Factors to consider||Non Resident External (NRE) FD||Non Resident Ordinary (NRO) FD||Foreign Currency Non Resident (FCNR) Deposit|
|Purpose||For income earned outside India||For income earned from India (pension, rent etc.)||Foreign Currency Investment in India|
|Currency||INR||INR||USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF|
|Joint Account Holding||Only NRI||Both NRI and Residents||Only NRI|
|Tenure of Deposits||1 year to 10 years||7 days to 10 years||1 year to 5 years|
|Interest||Up to 7.81%*||Up to 7.30%*||Up to 3%*|
(transfer of money from Indian bank account to foreign bank account)
|Both Principal (money invested initially) and Interest completely repatriable||Up to a maximum of 1 million USD per financial year||Both Principal and Interest completely repatriable|
|Tax Deductions||No tax||Tax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India||No tax|
Kotak Mahindra Bank’s NRE Fixed Deposit is a tax-free and fully repatriable Indian Rupee Deposit Account. It offers NRIs and PIOs high returns from income earned through foreign sources. In this blog, we will check out the latest Kotak Mahindra NRE FD rates.
Canara Bank provides various investment products to its Non-Resident Indian (NRI) customers. These customers can invest in Canara Bank NRI FDs to grow their savings. NRIs can invest their foreign income in these schemes and earn good returns based on the current Canara Bank NRI FD rates. Let’s explore the Canara Bank NRI FD interest rates 2020-21 for short term as well as long term tenure.
Bank of Baroda NRI FD Rates: Bank of Baroda is among the leading public sector banks in India with 131 million customers and 9, 482 branches. Apart from India, the bank has a global presence with 100 overseas offices. Non-Indian Resident (NRI) customers looking to save and grow their foreign income can invest in NRI fixed deposit schemes. Bank of Baroda provides NRIs with NRE, NRO and FCNR FD schemes.
Canara Bank offers a range of banking services to its non-resident customers, including Non-Resident External (NRE) fixed deposit (FD) accounts. NRE FDs are an attractive investment option for NRIs in India as they offer competitive interest rates and easy repatriation of funds. In this blog, we will delve into the details of Canara Bank NRE FD rates 2023 along with the features and benefits of NRE FD accounts.
IDBI Bank allows NRIs and OCIs to invest in FCNR fixed deposits in currencies like USD, GBP, EURO, AUD , CAD, HKD, SGD, CHF & JPY. One of the biggest advantages of investing in FCNR deposits is that this type of investment is insulated against currency fluctuations. Moreover, there is no tax on IDBI Bank FCNR rates in India and can be repatriated abroad without any restrictions.
Kotak Mahindra Bank offers a wide range of financial products and services to residents as well as NRIs. Non-Resident Indians can open an FCNR account with Kotak bank to manage their foreign earnings in India. Kotak Mahindra Bank offers FCNR fixed deposit accounts to NRIs, with competitive interest rates that range between 3.10 and 5.45% p.a. The account can be maintained in any of 6 acceptable foreign currencies – USD, GBP, EURO, YEN, AUD, and SGD. Here are the latest Kotak FCNR rates.
Foreign Currency Non-Resident (FCNR) accounts have become an attractive option for NRIs looking to invest their foreign currency earnings in India. South Indian Bank, one of the prominent public sector banks in India, offers competitive FCNR rates on fixed deposits made in major currencies such as USD, GBP, EUR, AUD, CHF, JPY and CAD. This blog sheds light on the South Indian Bank FCNR rates and the benefits of investing in the FCNR accounts.
Canara Bank is one of the leading public sector banks in India and has overseas presence through its offices in New York, London and Dubai. The bank offers FCNR fixed deposits for NRIs, PIOs and OCIs. Canara Bank FCNR rates vary based on the currency, FD amount, and tenure. Here are the latest interest rates on FCNR (B) deposits w.e.f. 12 June 2023.
South Indian Bank (SIB) is a premier private sector Indian bank based out of Thrissur in Kerala. The bank has considerable experience in serving NRIs. South Indian Bank NRI savings account, fixed deposits, NRI personal loan, insurances, etc. are some of the top services provided by the bank to Non-Residents and Overseas Citizens of India (OCIs). South Indian Bank NRE FD rates are listed below.