The IDFC FIRST bank offers Non Resident External Fixed Deposit accounts that allow NRIs to park their foreign currency earnings in India and get attractive tax-exempt interest rates on it. In this blog, we will explore the latest IDFC NRE FD rates.
IDFC NRE FD Rates 2023
Given below are the IDFC bank latest NRE Fixed Deposit rates 2023:
For deposits less than Rs. 2 crores
| Period | Interest Rates (p.a.) on deposits less than Rs. 2 crore |
|---|---|
| 1 year | 6.50% |
| 1 year 1 day – 550 days | 7.50% |
| 551 days – 2 years | 7.25% |
| 2 years-1 day – 749 days | 7.25% |
| 5 years 750 days | 7.25% |
| 751 days – 3 years | 7.25% |
| 3 years 1 day – 5 years | 7.00% |
| 5 years- 1 day – 10 years | 7.00% |
Note– These rates are effective from 1st July 2023 and are subject to periodic change.
For deposits of Rs. 2 crore to Rs. 25 crore where premature withdrawal is not permitted
| Period | Rs. 2 crore – 5crore | Deposits > Rs. 5 crore – 10 crore | Deposits > Rs. 10 crore – 15 crore | Deposits > Rs. 15 crore – 25 crore |
|---|---|---|---|---|
| 365 days | 7.35% | 7.35% | 7.35% | 7.35% |
| 366 – 399 days | 7.50% | 7.50% | 7.50% | 7.50% |
| 400 – 499 days | 7.45% | 7.45% | 7.45% | 7.45% |
| 500 – 540 days | 7.45% | 7.45% | 7.45% | 7.45% |
| 541 – 731 days | 7.45% | 7.45% | 7.45% | 7.45% |
| 732 – 1095 days | 7.20% | 7.20% | 7.20% | 7.20% |
| 3 years 1days – 5 years | 7.10% | 7.10% | 7.10% | 7.10% |
| 5 Year 1 Day – 8 Years | 7.10% | 7.10% | 7.10% | 7.10% |
| 8 Year 1 Day – 10 Years | 7.10% | 7.10% | 7.10% | 7.10% |
Note–
- These rates are effective from 19th August 2023 and are subject to periodic change.
For deposits of Rs. 2 crore to Rs. 25 crore where premature withdrawal is permitted
| Period | Rs. 2 crore – 5crore | Deposits > Rs. 5 crore – 10 crore | Deposits > Rs. 10 crore – 15 crore | Deposits > Rs. 15 crore – 25 crore |
|---|---|---|---|---|
| 365 days | 7.20% | 7.20% | 7.20% | 7.20% |
| 366 – 399 days | 7.35% | 7.35% | 7.35% | 7.35% |
| 400 – 499 days | 7.25% | 7.25% | 7.25% | 7.25% |
| 500 – 540 days | 7.25% | 7.25% | 7.25% | 7.25% |
| 541 – 731 days | 7.25% | 7.25% | 7.25% | 7.25% |
| 732 – 1095 days | 7.00% | 7.00% | 7.00% | 7.00% |
| 3 years 1days – 5 years | 6.90% | 6.90% | 6.90% | 6.90% |
| 5 Year 1 Day – 8 Years | 6.90% | 6.90% | 6.90% | 6.90% |
| 8 Year 1 Day – 10 Years | 6.90% | 6.90% | 6.90% | 6.90% |
Note– These rates are effective from 19th August 2023 and are subject to periodic change.
For deposits above Rs. 25 crore where premature withdrawal is not permitted
| Period | Rs. 25 crs <= 25.25 crs. | Rs. 25.25 crs<= Rs. 100 crs. | Rs. 100 crs <= Rs. 200 crs. | Rs. 200 crs |
|---|---|---|---|---|
| 365 – 399 days | 7.60% | 7.60% | 7.60% | 7.81% |
| 400 – 499 days | 7.45% | 7.45% | 7.45% | 7.45% |
| 500 – 540 days | 7.45% | 7.45% | 7.45% | 7.45% |
| 541 – 731 days | 7.45% | 7.45% | 7.45% | 7.45% |
| 732 – 1095 days | 7.45% | 7.45% | 7.45% | 7.45% |
| 3 years 1days – 5 years | 7.45% | 7.45% | 7.45% | 7.45% |
| 5 Year 1 Day – 8 Years | 7.15% | 7.15% | 7.15% | 7.15% |
| 8 Year 1 Day – 10 Years | 7.15% | 7.15% | 7.15% | 7.15% |
Note– These rates are effective from 19th August 2023 and are subject to periodic change.
For deposits above Rs. 25 crore where premature withdrawal is permitted
| Period | Rs. 25 crs <= 25.25 crs. | Rs. 25.25 crs<= Rs. 100 crs. | Rs. 100 crs <= Rs. 200 crs. | Rs. 200 crs |
|---|---|---|---|---|
| 365 – 399 days | 5.75% | 7.45% | 7.45% | 7.45% |
| 400 – 499 days | 5.75% | 7.35% | 7.35% | 7.35% |
| 500 – 540 days | 5.75% | 7.35% | 7.35% | 7.35% |
| 541 – 731 days | 5.75% | 7.35% | 7.35% | 7.35% |
| 732 – 1095 days | 5.75% | 7.35% | 7.35% | 7.35% |
| 3 years 1days – 5 years | 5.75% | 7.35% | 7.35% | 7.35% |
| 5 Year 1 day – 8 Years | 5.75% | 7.05% | 7.05% | 7.05% |
| 8 Year 1 day – 10 Years | 5.75% | 7.05% | 7.05% | 7.05% |
Note– These rates are effective from 19th August 2023 and are subject to periodic change.
NRE Fixed Deposits where Premature Withdrawal is Allowed
- If a Fixed Deposit is prematurely closed, the interest will be paid based on the interest rate that was applicable at the time when the deposit was booked, for the corresponding period during which the deposit remained with the bank.
- If the NRE Fixed Deposit is closed prematurely, a ‘Premature Closure Penalty’ will be imposed according to the Bank’s prescribed rate on the deposit date.
- The interest will be paid for the duration the deposit remains with the bank after deducting the penalty.
- It’s important to note that Fixed Deposits closed prematurely due to the death of the account holder(s) are exempt from the Premature Closure Penalty mentioned above.
- The penalty for premature closure of an IDFC bank Fixed Deposit is 1%.
- This penalty is levied on all except for Government entities, Quasi-government entities, Statutory bodies and Regulatory Authorities.
NRE Fixed Deposits where Premature Withdrawal is not Allowed
- For some of IDFC NRE Fixed Deposits, facility for premature withdrawal is not allowed. This means that the NRI depositor cannot close the deposit before the agreed term expires.
- However, the Bank may allow premature withdrawal in exceptional circumstances, such as (a) when directed by a statutory, regulatory authority, or government order, or (b) for deceased claim settlement cases.
- If the deposit is withdrawn prematurely under the aforementioned exceptional circumstances, the Bank will not pay any interest on the principal amount of the deposit. Any interest that has been credited or paid until the date of premature closure will be deducted from the deposit amount.
- Also, note that the auto renewal facility is not available for such Fixed Deposits at time of opening of the Fixed Deposit account.
IDFC Bank NRE Fixed Deposit: Features
| Particulars | Details |
|---|---|
| Currency Available | – Indian Rupee (INR)- Funds remitted in foreign currency are converted into INR at prevailing exchange rate |
| Tenure | 1-10 years |
| Renewal facility | Renewal facility available for NRE FDs where premature withdrawal is allowed |
| Payment of Interest | Interest is paid monthly |
| Taxability | Tax-free Interest |
| Repatriability | Both principal amount and interest earned are completely and freely repatriable |
| Eligibility | NRIs/ PIOs |
IDFC Bank NRE Fixed Deposit: Benefits
IDFC Bank offers Non-Residential External (NRE) Fixed Deposits with several features and benefits. Here are some of them:
- High Interest Rates: IDFC Bank provides competitive interest rates of up to 7.75% p.a. on NRE Fixed Deposits, allowing you to maximize your returns on your foreign earnings.
- Tax-Free Interest: The interest earned on NRE Fixed Deposits is tax-free in India. This means you can enjoy the full benefit of your interest earnings without any tax deduction.
- Repatriation: NRE Fixed Deposits are fully repatriable, which means you can transfer the principal amount and interest earned back to your foreign account without any restrictions.
- Flexible Tenures: IDFC Bank offers a range of flexible tenure options for NRE Fixed Deposits, allowing you to choose a duration that suits your financial goals. The tenure options typically range from 1 year to 10 years.
- Automatic Renewal: At the end of the tenure, IDFC Bank provides the convenience of automatic renewal of NRE Fixed Deposits.
- Easy Account Management: IDFC Bank offers a user-friendly online banking platform and mobile application, allowing you to conveniently manage your NRE Fixed Deposit account, track your interest earnings, and view your statements.
Contact SBNRI
Due to a lengthy process and lots of documents required to apply for NRI FD accounts, NRIs living away from India may face several challenges. At SBNRI, we understand this struggle. You can download SBNRI App to apply for an NRE Fixed Deposit account with nominal documentation with a smooth procedure.
You can also click on the button below for more information and to apply for an NRI FD account. Visit our blog and YouTube Channel for more details.
