Due to lower risk than other financial instruments and reliability in a high-risk economic environment, fixed deposits remain 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 Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) as well. In this blog, we will list the top Indian banks for NRI accounts, the latest NRO FD rates for 2024, how to open NRO FD in India 2024, and more.
Also Read: NRE Fixed Deposit Rates 2024: Top Banks for NRE FDs
What is an NRO Fixed Deposit?
Non-resident Indians (NRIs) can use NRO (Non-Resident Ordinary) accounts to park the funds they had before becoming an NRI and also their Indian income such as rent, dividends, Indian salary, etc. Interest earned on NRO fixed deposit accounts is taxable in India under the Income Tax Act of India.
While some NRO fixed deposits can be withdrawn before maturity, most of the FDs come with a lock-in period. If users break the FD before maturity, some schemes offer low interest, where premature withdrawal is allowed. Where premature withdrawal is not allowed, a penalty will be applicable.
Also Read: 10 Best NRE Accounts in India for NRIs 2024: Online Application
NRO FD Rates 2024: List of Banks and Interest Rate Comparison
NRO fixed deposit rates vary from bank to bank and senior citizens get additional interest.
Here are NRO FD rates for a deposit of less than Rs. 1 crore offered by popular Indian banks including ICICI NRO FD rates, HDFC NRO FD rates, SBI NRO FD rates, etc.
| Name of the bank | 1 yr | Above 1 year to 3 years | 3 years to 5 years |
|---|---|---|---|
| State Bank of India | 6.80% | 6.80% – 7.10% | 6.50% – 6.75% |
| ICICI Bank | 6.70% | 6.70% – 7.10% | 7.00% |
| HDFC Bank | 6.60% | 6.60% – 7.25% | 7.00% – 7.20% |
| Axis Bank | 6.70% | 6.70% – 7.10% | 7.10% |
| Kotak Mahindra Bank | 7.10% | 7.10% – 7.25% | 6.20% – 7.00% |
| Punjab National Bank | 6.75% | 6.80% – 7.25% | 6.50% – 7.00% |
| IndusInd Bank | 7.75% | 7.25% – 7.75% | 7.00% – 7.25% |
| Bank of Baroda | 6.75% | 6.75% – 7.25% | 6.50% |
| Yes Bank | 7.50% | 7.25% – 7.75% | 7.25% |
| Bank of India | 6.50% | 6.50% – 7.25% | 6.00% – 6.50% |
| Bank of Maharashtra | 6.50% | 6.25% – 6.50% | 6.00% |
| Canara Bank | 6.90% | 6.80% – 7.25% | 6.70% – 6.80% |
| DBS Bank | 7.00% | 6.50% – 7.50% | 6.50% |
| Deutsche Bank | 8.00% | 7.00% – 8.00% | 7.00% – 7.50% |
| Dhanalakshmi Bank | 6.75% | 6.50% – 7.25% | 6.50% – 6.60% |
| IDBI Bank | 6.80% | 6.50% – 7.00% | 6.50% |
| Indian Bank | 6.10% | 6.10% – 7.25% | 6.25% |
| Indian Overseas Bank | 6.90% | 6.80% – 7.30% | 6.50% |
| Jammu and Kashmir Bank | 7.10% | 6.50% – 7.10% | 6.50% |
| Karnataka Bank | 7.10% | 6.50% – 7.40% | 6.50% |
| South Indian Bank | 6.70% | 6.50% – 7.40% | 6.00% – 6.60% |
Also Read: What is the minimum tenure of NRO FD?
Top 6 Banks for Best NRO FD in India 2024
1. SBI NRO FD
State Bank of India is the leading public sector Indian international bank that offers NRE fixed deposits to Non-Resident Indians. SBI NRO FD Rates for a deposit below Rs. 2 crore range between 6.50% to 7.10% per annum.
Key features of SBI NRO Fixed Deposits
- The account can be 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 NRO savings bank account if requested by the account holder.
- Up to USD 1 million or its equivalent is repatriable in a financial year.
- Nomination facility is available.
- Loan/ overdraft facility against your deposit is available.
- Premature withdrawal is allowed.
2. HSBC NRO FD
HSBC Bank, a globally renowned financial institution, offers a range of attractive investment options for non-resident Indians (NRIs). One such option is the HSBC NRO FD Rates scheme providing attractive interest rates.
Key features of HSBC NRO FD
- Tenure ranging from 7 days to 5 years.
- Can start with a minimum investment of Rs. 25,000.
- Competitive NRO fixed deposit interest rates, ensure that NRIs can earn attractive returns on their investments.
- Overdraft against your NRO term deposits at just 2% over your deposit rate.
3. ICICI NRO FD
NRIs can open an ICICI NRO fixed deposit to save their foreign earnings in Indian rupees and get attractive exchange rates on the conversion of their foreign currency into INR.
Key features of ICICI NRO 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, at attractive interest rates.
- Repatriability: Interest earned on ICICI NRO FD is fully repatriable after deduction of TDS and principal up to USD 1 million can be repatriated per financial year.
- Auto-renewal of fixed deposit on maturity.
4. HDFC NRO FD
HDFC NRO Fixed Deposit is one of the highest in the industry ranging from 3.00% to 7.25%.
Key features of HDFC NRO FD
- Minimum amount for an initial HDFC NRO fixed deposit is Rs. 25,000, and you can book add-on deposits in multiples of Rs. 10,000.
- Transfer money from an existing NRE/ NRO account with a bank in India to open NRO deposits.
- Flexible deposit tenure from 7 days to 10 years
- Depositors can enjoy an overdraft facility of up to 90% of the deposit.
5. Axis Bank NRO FD
Open an Axis Bank NRO fixed deposit account with any convertible currency and enjoy attractive interest rates.
Key features of Axis Bank NRE FD
- Flexible tenure ranging from 7 days to 10 years.
- Overdraft up to 90% of your fixed deposit amount at attractive interest rates.
- You can make a partial withdrawal from a fixed deposit.
- Interest earned on Axis NRO fixed deposit in the current financial year is fully repatriable after the deduction of TDS.
- Funds up to USD 1 million can be repatriated per financial year for all legitimate reasons.
6. Yes Bank NRO FD
NRIs and PIOs can open an NRO FD with Yes Bank to invest their foreign earnings in India and earn attractive returns.
Key features of Yes Bank NRE FD
- Competitive interest rates up to 7.75% on NRO Fixed Deposits
- Flexible tenure options, ranging from 7 days to 10 years
- Principal amount in NRO Fixed Deposits is non-repatriable. However, interest earned on these deposits is repatriable after deducting applicable taxes.
Features of NRO Fixed Deposit
There are different types of Fixed Deposits available for NRI customers based on features. Here are the key features of NRO fixed deposits.
- NRO FD accounts can be used by NRIs who receive income from sources in India.
- The interest earned on funds deposited in this account is taxable under the Income Tax Act of 1961.
- Interest earned can be repatriated to a foreign account. However, the principal amount can’t be transferred outside India.
- NRO account is maintained in Indian rupee (INR) and can’t be repatriated or converted into a foreign currency.
- NRIs can open an NRO account jointly with resident relatives or Indian citizens.
- Interest and returns on NRO fixed deposit accounts are higher as compared to savings or current accounts.
- Minimum amount that can be deposited in an NRO account is Rs. 1 lakh.
- NRO fixed deposit rates vary from bank to bank and term to term.
Also Read: NRI Accounts: Which one to choose? NRE or NRO?
Documents Needed to Open NRO FD Accounts
Documentation may vary from bank to bank. Individuals need to submit the following basic documents to open an NRO Fixed Deposit account:
- Duly filled NRO FD application form
- Self-attested photographs
- Identity proof: Passport/ PAN card/ Aadhaar card
- Address proof: Aadhaar card/ voter’s ID card/ utility bills (Electricity bill, telephone bill, water bill)
If necessary, other documents will be mentioned by the bank authorities.
Tax Applicable on NRO Fixed Deposit
Generally fixed deposits come with tax benefits, but interest offered on that is not tax-free. The principal of NRO fixed deposits is not taxable, but the interest earned on it will be subject to tax as per the Income Tax Act of 1961. The interest earned on NRO fixed deposits is subject to tax deduction at a flat rate of 30% along with applicable surcharge and cess.
Also Read: What is the tax on NRO deposit?
NRI Account Opening through SBNRI
To apply for an NRI account online, you have two options. You can either click the “Apply for NRI” button on this page or utilize the SBNRI app. The SBNRI app is a unique platform designed specifically for the convenience of opening an NRI account online. Here are the simple steps to apply for an online NRI account using the SBNRI app:
- Download the SBNRI app from either the Google Play Store or App Store.
- Log in to the app using your credentials.
- Tap on the “Open NRI account” button and choose the desired bank from the provided list.
- Utilize the in-app scanning feature to scan and upload your KYC documents.
- Finally, click on the “Apply” button, and your application will be submitted.
By following these steps, you can easily apply for an NRI account online using the user-friendly SBNRI app.
Contact SBNRI
Due to the 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. Also, visit our blog and YouTube channel for more details.
FAQs
What are NRO fixed deposit rates?
- NRO FD rates range from 2.75% – 8.00% for different banks in India for various tenures. NRO fixed deposit rates also vary from bank to bank and senior citizens get additional interest. You can find the list of best NRO fixed deposit rates in the above blog.
How to avoid TDS on NRO fixed deposit?
- Only the interest earned on NRO Deposit is taxable in India at 30% tax + surcharge + education cess* is deducted at the source of interest earned in India. However, India has a Double Tax Avoidance Agreement (DTAA) with over 85 other countries globally where you can benefit under the provisions of DTAA and lessen your tax burden.
What is the highest FD rate in India for NRI?
- IndusInd Bank offers up to 7.75% per annum for NRO FD while Deutsche Bank offers 8.00% for NRO FD. Similarly, many other banks in India offer upwards of 7.10%-7.40% on NRO FD for different tenures.
Which bank gives 8% interest?
- Deutsche Bank gives 8.00% interest per annum on NRO FD for a tenure of 1 yr to 3 yr.
Which bank offers the best NRO FD rates in India?
- IndusInd Bank offers up to 7.75% per annum for NRO FD while Deutsche Bank offers 8.00% for NRO FD. Similarly, many other banks in India offer upwards of 7.10%-7.40% on NRO FD for different tenures. Before finalizing an FD scheme, you must compare interest rates and other features of NRO fixed deposits offered by multiple banks, such as SBI NRO fixed deposit rates, ICICI NRO fixed deposit rates, HDFC fixed deposit rates, etc.
Can I repatriate funds from my NRO FD account?
- Principal investment in NRO FDs can’t be repatriated. Only the NRO FD interest can be transferred to a foreign account.
Which is better NRE or NRO account?
- NRE FD is meant for NRIs to mainly park funds from foreign countries. NRE FDs are also fully repatriable. NRO deposits, on the other hand, are a good fit if you want to deposit your Indian earnings like rental income, dividends, Indian salary, etc.
