NRE Fixed Deposit: An Overview
The interest rate for NRI is minimum of 4.90 % and maximum of 6.50 % respectively. The minimum deposit permissible under this plan is less then 2 crore
Interest Rates on NRE FD
Given below are the latest interest rates offered by top banks under this FD category.
Name of Bank | For General Citizen (p.a.) | For Senior Citizen (p.a.) |
|---|---|---|
| Axis Bank NRE FD | 6.70% to 7.25 % | -- |
| Bank of Baroda NRO FD | 6.50% to 7.25 % | -- |
| Canara Bank NRE FD | 5.00% to 7.40 % | -- |
| Central bank of india NRE FD | 5.50% to 6.75 % | -- |
| Citi Bank NRE FD | 2.00% to 3.50 % | -- |
| DCB Bank NRE FD | 7.25% to 8.00 % | -- |
| Duetsche Bank NRE FD | 7.00% to 8.00 % | -- |
| Equitas Small Finance Bank NRE FD | 7.25% to 8.25 % | -- |
| Federal Bank NRE FD | 5.60% to 7.50 % | -- |
| HDFC Bank NRE | 3.50% to 6.10 % | -- |
| HSBC Bank NRE FD | 3.25% to 7.25 % | -- |
| IDBI Bank NRE FD | 6.50% to 6.80 % | -- |
| IDFC First Bank NRE FD | 3.00% to 7.50 % | -- |
| Indian Overseas Bank NRE FD | 6.50% to 7.10 % | -- |
| IndusInd Bank NRE FD | 3.50% to 7.50 % | 4.25% to 8.25 % |
| karnataka bank NRE FD | 6.15% to 7.90 % | 6.20% to 6.20 % |
| Punjab National Bank NRE FD | 6.50% to 7.00 % | -- |
| State Bank of India NRE | 6.50% to 7.00 % | -- |
| UCO Bank NRE FD | 6.20% to 6.50 % | -- |
| Union Bank of India NRE FD | 6.50% to 7.25 % | -- |
| Yes Bank NRE FD | 5.75% to 7.25 % | -- |
A non-resident external (NRE) fixed deposit is a type of bank account that allows you to deposit money in Indian rupees while living outside India. NRE fixed deposits offer several benefits including a fixed interest rate, no taxes on the interest earned, and the option to withdraw your money at any time. Amongst various investment instruments, NRE FDs are the foremost choice to secure a great fortune. Interest rates on NRE accounts are usually higher than on regular savings accounts so that you can grow your money more quickly. So, if you are looking forward to depositing your hard-earned money in NRE fixed deposits, you must get acquainted with the features, required documents, eligibility criteria, and much more.
Features and Benefits of NRE Fixed Deposit
NRE deposits are a great way to save money while earning interest. Here are some of the features and benefits of NRE deposits:
- NRE fixed deposits offer a higher interest rate than regular savings accounts, making them a great option for growing your money.
- The interest earned on NRE fixed deposit is exempted from income tax.
- The financial institutions offer auto-renewal facilities on NRE fixed deposits.
- Investors can deposit amounts in Indian rupees, which makes it a convenient investment option for Indian citizens residing outside India.
- You can withdraw the deposited amount before maturity. However, there may be a penalty for doing so.
- The investors can deposit the amount for a minimum period of 1 year and a maximum period of 10 years.
- You can avail of loans and overdraft facilities against an NRE FD.
- NRE deposits are 100% repatriable, meaning NRIs can freely transfer funds from their NRE account to their home country.
Eligibility Criteria For NRE Fixed Deposits
To be eligible for an NRE fixed deposit, the investor must be an NRI or a POI. You will also need to open an NRE account with any Indian bank in which you look forward to opening your NRE FD. bank in India. Once you have done so, you can transfer funds from your home country to your NRE account and deposit them into an NRE fixed deposit.
Documents Required For NRE Fixed Deposits
To open an NRE fixed deposit, you'll need to provide the following documents:
| Criteria | Documents Required |
| For Non-Resident Indians | ● Recent passport size photograph of the applicant ● Indian PAN Card ● Form 60 ● Copy of Passport ● Work Permit ● Residence Visa Copy ● Address Proof in accordance with Customer Identification Policy |
| For Person of Indian Origin | ● Recent passport size photograph of the applicant ● Copy of Passport ● Valid PIO/OCI card/ proof of PIO as per customer Identification Policy ● Address Proof in accordance with the Customer Identification Policy ● PIO declaration duly signed |
NRE Fixed Deposit Interest Rate
| Bank Name | 1 to 2 years | 2-3 years | 3 to 5 years | 5 to 10 years |
| State Bank of India | 5.30% p.a. | 5.35% p.a. | 5.45% p.a. | 5.50% p.a. |
| IDBI Bank | 5.25% p.a. | 5.35% p.a. | 5.60% p.a. | 5.75% p.a. |
| HDFC Bank | 5.10% p.a. | 5.20% p.a. | 5.45% p.a. | 5.60% p.a. |
| Axis Bank | 5.10% p.a | 5.40% p.a | 5.40% p.a | 5.75% p.a |
| IndusInd Bank | 6.00% p.a | 6.50% p.a | 6.50% p.a | 6.25% p.a |
| Yes Bank | 6.25% p.a | 6.50% p.a | 6.75% p.a | 6.75% p.a |
| Allahabad Bank | 6.45% p.a | 6.45% p.a | 6.25% p.a | 6.25% p.a |
| Andhra Bank | 5.75% p.a | 5.75% p.a | 5.80% p.a | 5.80% p.a |
| Bank of India | 5.25% p.a | 5.30% p.a | 5.30% p.a | 5.30% p.a |
| Federal Bank | 5.10% p.a. | 5.50% p.a. | 5.35% p.a. | 5.50% p.a. |
Difference Between NRE and NRO Accounts
NRE and NRO accounts are different bank accounts opened in India by foreign nationals. However, they are distinct from one another in various terms. When foreign nationals who reside outside India open an account in Indian banks, it falls in the category of NRE accounts. At the same time, when foreign nationals living in India look forward to opening an account, they will have to count on NRO accounts.
NRE accounts are meant for NRIs who want to park their foreign earnings in India. The money in these accounts is repatriable, meaning the account holder can take the money out of India when they want to. On the other hand, NRO accounts are meant for NRIs who want to earn income in India. The money in these accounts is not repatriable, which means that the account holder cannot take the money out of India.
Additionally, NRE accounts are designated as foreign currency accounts, while NRO accounts are designated as rupee accounts. In simple words, you can use the funds deposited in an NRE account only for transactions in foreign currency. In contrast, you can use the funds in an NRO account for transactions in foreign currency or Indian rupees.
Furthermore, another key difference between NRE and NRO accounts is that funds held in an NRE account are exempt from taxes in India, while funds held in an NRO account are subject to Indian taxes.
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Frequently Asked Questions
What is an NRE fixed deposit?
A non-resident external (NRE) fixed deposit is a type of bank account that allows you to deposit money in Indian rupees while living outside India.
Is NRE FD a good investment?
NRE FD is a good investment for various reasons. Firstly, it offers higher interest rates than regular FDs, thus providing the investor with better returns. Secondly, the funds are repatriable, so the investor can transfer the funds back to the home country if needed.
Can I put FD in an NRE account?
Yes, the majority of Indian banks and NBFCs offer NRE fixed deposits to NRIs to grow their money more quickly.
Is NRE FD tax-free?
Yes, the interest earned from NRE fixed deposits is exempted from tax.
How long can I maintain an NRE account?
You can maintain an NRE account for a maximum investment period of 10 years.
