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) 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
Up to 5.85%*
SBI
Up to 5.40%*
Citibank
Up to 4.23%*
Bank of Baroda
Up to 5.40%*
Canara Bank
Up to 5.50%*
Indian Bank
Up to 5.40%*
ICICI
Up to 5.50%*
HDFC
Up to 6.25%*
Indian Overseas Bank
Up to 5.75%*
Punjab National Bank
Up to 5.50%*
IDBI Bank
Up to 5.80%*
Kotak
Up to 5.40%*
DCB
Up to 7.35%*
Axis Bank
Up to 5.80%*
DBS Bank
Up to 5.25%*
Union Bank of India
Up to 5.80%*
United Bank of India
Up to 6.50%*
YES Bank
Up to 7.25%*
SBM
Up to 7.50%*
IndusInd
Up to 7.81%*
RBL
Up to 7.50%*
IDFC
Up to 6.90%*
Central Bank of India
Up to 5.35%*
Deutsche Bank
Up to 7%*
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%*
Repatriation
(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
Indians living abroad can get higher Rupee returns on their NRI income through IDFC NRI Fixed Deposit. IDFC First Bank offers 3 types of NRI fixed deposit schemes for NRIs for their foreign earnings. IDFC Bank has some of the best NRI fixed deposit options to help NRIs earn higher returns on their funds. Based on their source of income, NRIs can invest money in an NRE or NRO fixed deposit. IDFC NRI fixed deposit rates 2021 are one of the best in the market.
Federal Bank offers a host of NRI banking products including NRI savings accounts and current accounts, NRI gold loans, housing loans, and insurance and wealth management products. Federal Bank Fixed Deposit scheme is the right option for NRIs to park their hard earned money and get periodical income by way of interest. The tax benefits on Federal Bank NRE FD rates ensure high yield investment to non-residents. NRE savings accounts allow easy movement of funds as one can repatriate both principal and interest abroad.
Due to lower risk than other financial instruments and reliability in a high risk economic environment, fixed deposits continue to be one of the most popular investment options among the common public. Guaranteed returns, compound rates and relative safety are other reasons why fixed deposits are widely procured not only by resident Indians but NRIs (Non-Resident Indians) as well. Fixed deposit interest rates don’t change even if the market is not in a good shape. In this article, we will explore the current NRO fixed deposit rates 2021 and other features.
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.
United Bank of India NRI FD Rates: United Bank of India (UBI) provides multiple types of fixed deposit schemes to its NRI customers, such as NRE deposits, NRO deposits, FCNR (B) deposits, and RFC deposits. The deposit accounts allow Non-Resident Indians to save and grow their income in foreign currency and INR.
Bank of India NRI FD Rates: Bank of India is a state-owned commercial Indian Bank. The bank offers a wide range of financial and investment services to its customers in India and foreign countries. BOI NRI fixed deposits are one of the best investment avenues for Non-Resident Indians. These customers can open fixed deposit accounts with the bank to enjoy attractive Bank of India NRI FD Rates.
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 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.
Kotak NRI FD Rates 2021: NRI Fixed Deposits are one of the best investment options for Non-Resident Indians to multiply their savings. Kotak Mahindra Bank offers primarily three types of NRI Fixed Deposits – NRE, NRO and FCNR – for its NRI customers. These FD accounts offer greater returns at attractive NRI interest rates. Here is the full description of prevailing Kotak Mahindra Bank NRI FD interest rates 2021.
ICICI Bank NRE FD Rates: ICICI Bank is one of the top banks in India that offers a host of financial services to its Indian as well as Non-Resident Indian (NRI) customers. NRI Fixed Deposits like Non-Resident External (NRE), Non-Resident Ordinary (NRO) and Resident Foreign Currency (RFC) deposits are some of the most popular investment options offered by the bank for NRI investors.
