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 in India.
Also Read: 10 Best NRE Savings Accounts for NRIs
NRE FD Rates 2022
Listed below are the NRE FD rates by top Indian banks for deposits less than Rs. 2 cr for a tenure ranging from 1 year to 10 years.
| Bank | 1 year | Above 1 year to 3 years | 3 years to 5 years | 5 years to 10 years |
|---|---|---|---|---|
| Federal Bank | 5.45% | 5.60% – 6.25% | 5.75% – 6.00% | 5.75% – 6.00% |
| SBI | 5.30% | 5.30% – 5.35% | 5.45% | 5.50% |
| Citibank | 2.75% | 2.75% – 3.00% | 3.50% | 3.50% |
| Bank of Baroda | 5.45% | 5.60% – 5.65% | 5.65% | 5.65% |
| Canara Bank | 5.30% | 5.45% – 5.60% | 5.70% | 5.75% |
| Indian Bank | 5.00% | 5.05% – 5.10% | 5.20% | 5.15% – 5.25% |
| ICICI NRE FD Rates | 5.10% | 5.10% – 5.40% | 5.60% | 5.75% |
| HDFC Bank | 5.10% | 5.10% – 5.40% | 5.60% | 5.75% |
| Indian Overseas Bank | 5.25% | 5.40% – 5.50% | 5.60% | 5.60% |
| Punjab National Bank | 5.30% | 5.45% – 5.50% | 5.75% | 5.60% |
| IDBI Bank | 5.85% | 5.90% – 6.00% | 5.60% – 5.75% | 5.75% |
| Kotak | 5.85% | 5.85% – 6.00% | 6.15% | 6.15% |
| DCB | 6.10% | 5.75% – 6.60% | 6.60% | 6.60% |
| Axis Bank | 5.50% | 5.50% – 5.70% | 5.70% | 5.75% |
| DBS Bank | 5.75% | 5.25% – 6.00% | 5.00% | 6.25% |
| Union Bank of India | 5.75% | 5.85% – 5.90% | 5.75% – 6.05% | 6.10% |
| YES Bank | 7.01% | 7.25% | 7.25% | 7.25% |
| SBM | 7.00% | 7.00% – 7.25% | 5.85% – 7.00% | 5.85% – 6.25% |
| IndusInd | 7.00% | 7.00% | 7.00% | 6.00% |
| RBL | 6.85% | 6.85% – 7.35% | 6.90% | 5.75% |
| IDFC First Bank | 5.75% | 6.25% – 6.60% | 6.50% | 6.00% |
| Deutsche Bank | 5.25% | 6.00% – 6.25% | 7.00% | 7.00% |
- The above rates were updated on 2nd August 2022
- For senior citizens additional interest rate of 0.50% is offered
- Note: Interest rates are subject to periodic changes without prior intimation
Top 5 banks for NRE FD
SBI NRE FD
State Bank of India is the leading public sector Indian international bank that offers NRE fixed deposits to Non-Resident Indians. SBI NRE FD rates for a deposit below Rs. 2 crore range between 5.30% to 5.50% per annum.
Key features of SBI NRE fixed deposits
- The account can opened with a zero balance
- Minimum deposit in general branches: Rs. 1000
- In personal banking branches: Rs. 1 lakh for metro/ urban areas and Rs. 50,000 in semi-urban & rural areas
- The interest is paid quarterly and can be credited to the SBI NRE savings bank account if requested by the account holder.
- Principal and interest are fully repatriable.
- Loan/ overdraft facility available.
ICICI NRE FD
NRIs can open an NRE fixed deposit to save their foreign earnings in Indian rupees and get attractive exchange rates on conversion of their foreign currency into INR.
Key features of ICICI NRE FD
- Minimum deposit amount: Rs. 25,000.
- Principal and interest earned are fully repatriable.
- Interest earned is exempt from tax in India.
- Loans up to 90% of the deposit, maximum INR 500 lakh.
- ICICI NRE FD rates are offered in the range of 5.10% to 5.75%.
HDFC NRE FD
HDFC NRE fixed deposit rates are one of the highest in the industry ranging from 5.10% to 5.75% (6.50% p.a. for senior citizens).
Key features of HDFC NRE FD
- Partial withdrawal of NRE fixed deposits is allowed.
- You can repatriate funds from your NRE account to an account in your country of residence.
- You can open the FD account with any other eligible NRI.
- HDFC NRE FD term ranges from 1 year to 10 years.
Axis Bank NRE FD
Open Axis Bank NRE fixed deposit account with any convertible currency and enjoy attractive interest rates.
Key features of Axis Bank NRE FD
- Interest earned on fixed deposit is not taxable in India.
- Easy operations with the nomination facility.
- Overdraft facility up to 85% of the deposit.
- Partial withdrawal of FD is allowed with Axis NRE savings account with premature encashment.
Yes Bank NRE FD
NRIs and PIOs can open an NRE FD with Yes Bank to invest their foreign earnings in India and earn attractive returns.
Key features of Yes Bank NRE FD
- Yes Bank NRE FD rates are as high as 7.25% p.a.
- Open an FD with as low as Rs. 10,000.
- NRIs can book the fixed deposit online.
- Flexible tenure starting from 1 year to 10 years.
Eligibility criteria for NRE fixed deposits
One needs to meet the following eligibility criteria to open an NRE fixed deposit account:
- All NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) can apply for NRE fixed deposit accounts.
- They should have an NRE account with any bank.
Also Read: NRI Accounts: Which one to choose? NRE or NRO?
Documents required to open an NRE account
To open an NRE FD account, you will need to submit the following documents;
- Valid ID proof
- Passport
- Valid work visa/ permit
Features of NRE fixed deposit
Here are the key features of NRE fixed deposit:
- NRIs can park the deposit in Indian rupees (INR).
- Flexible tenure ranging from 1 year to 10 years.
- Auto-renewal facilities are offered by banks once the FD matures.
- Most banks offer loans against NRE deposits.
- NRIs can get up to 90% overdraft on NRE deposits.
- NRE fixed deposits can be held jointly.
- Tax-saver FDs are available, which allow NRIs to claim tax benefits in India under Section 80C of the IT Act.
NRE fixed deposit benefits
You can enjoy the following benefits by investing in NRE FDs:
- NRIs can open fixed deposit accounts in India and earn attractive interest rates.
- NRE fixed deposit interest rates are tax-free in India.
- In case of unforeseen events, depositors can withdraw funds prematurely.
- You can easily transfer the principal amount and interest earned from your NRE account.
- Nomination facility is available for depositors.
NRE fixed deposit rate comparison
NRE fixed deposit rates vary from bank to bank and term to term. For example, Axis Bank NRE FD rates range from 5.10% to 5.75% per annum, whereas Yes Bank NRE FD rates from 6.00% to 6.50% per annum. However, some banks have a lock-in period and charge a premature withdrawal penalty. So, you must compare FD rates and other terms before finalizing an NRE FD.
Due to a lengthy process and lots of documents required to apply for NRE 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.
FAQs
The interest on NRE FD and/ or NRE savings account is not taxable under the provision of Section 10(4) of the Income Tax Act 1961 for individuals who qualify as a ‘Person resident outside India’ as per FEMA (Foreign Exchange Management Act).
You can deposit any convertible currency in an NRE FD account.
Yes, you can continue to maintain your NRE FD until its maturity even after you return to India.
As NRE FDs come with a host of benefits, it is an ideal investment option for NRIs to earn decent returns on their deposits.
NRE fixed deposit rates vary from bank to bank based on the tenure of a fixed deposit. As of now, Yes Bank and IndusInd Bank are offering the highest NRE FD rate up to 6.50% per annum.
Yes, many banks offer a loan against an NRE fixed deposit of up to 90% of the deposit amount.
Yes, both the principal and interest earned on an NRE FD are fully repatriable.
No, deposits made in an NRE fixed deposit are not taxable in India.
TDS is not deducted on interest earned from NRE FDs.
