NRI Fixed Deposits: 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 NRI 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.)

State Bank of India NRI FD

4.75% to 6.75 %


Indian banks and financial institutions offer a broad range of investment products to pile wads of money. If you look forward to investing in top fixed deposits of India, being an NRI, you have plenty of options too.

NRI fixed deposits are a great way to invest your money and earn a higher rate of return. With an NRI fixed deposit, you can invest in various currencies, including the US dollar, the British pound, and the Euro. Additionally, you can choose to invest in a variety of different assets, including stocks, bonds, and real estate. The best part about NRI fixed deposits is that they are fully insured and backed by the government of India.

Types of NRI Fixed Deposits

With the Indian economy growing, NRIs can invest in the country. The NRI investment in India has grown by leaps and bounds. The NRI fixed deposit is one of the most sought-after investment options for NRIs. The NRI fixed deposits are classified into three categories: NRE FD, NRO FD, and FCNR FD.

NRE Fixed Deposit

When an investor deposits money in Indian Rupees in an NRE account, it is termed an NRE Fixed deposit. These accounts offer a higher interest rate than regular savings accounts and are also exempt from taxes. You can make these deposits in any currency, but you will get the interest and principal in Indian Rupees. The NRE account holder can repatriate the funds held in the account to the account holder's home country at any time.

Bank2 - 3 Years5 - 10 Years
Axis Bank5.10% p.a.5.75% p.a.
State Bank of India5.35% p.a.5.50% p.a.
HDFC5.50% p.a.5.75% p.a.
Punjab National Bank5.50% p.a.5.60% p.a.
Union Bank of India5.90% p.a.6.10% p.a.

NRO Fixed Deposit

A non-resident ordinary (NRO) fixed deposit account is a bank account that any Indian citizen living abroad can open. Investors can use the NRO accounts to hold funds in Indian Rupees and any foreign currency. Funds accumulated in NRO fixed deposits come with flexible end use, such as investing in Indian property, paying taxes, etc. Interest earned on an NRO account is taxable.

Bank2 - 3 Years5 - 10 Years
Axis Bank5.40% p.a.5.75% p.a.
State Bank of India5.35% p.a.5.50% p.a.
HDFC5.50% p.a.5.75% p.a.
Punjab National Bank5.10% p.a.5.25% p.a.
Union Bank of India5.50% p.a.5.80% p.a.

FCNR Fixed Deposits

An FCNR fixed deposit is a bank account held in a foreign currency. The depositor can use the FCNR account to generate foreign currency savings or make payments in foreign currency. Additionally, you can use the account to receive interest on a foreign currency deposit.

If you are looking for the best option to save money in foreign currency, nothing can beat an FCNR account. This account offers a higher interest rate than a regular savings account, and you can choose to have your money deposited into your account every month. You can also have your money automatically transferred to your account each month.

HDFC BankN/A1.85% p.a.N/AN/A2.55% p.a.1.90% p.a.
Axis Bank0.95% p.a.N/A0.05% p.a.0.05% p.a.1.00% p.a.0.90% p.a.
State Bank of India2.45% p.a.3.25% p.a.0.15% p.a.0.05% p.a.2.45% p.a.3.17% p.a.
Punjab National Bank1.81% p.a.2.01% p.a.0.59% p.a.0.17% p.a.2.31% p.a.2.44% p.a.

Key Features and Benefits of NRI Fixed Deposits

Investing in Fixed Deposits still offers the maximum returns on your money. NRI Fixed Deposit is a boon for NRIs who have the option to deposit their savings in India. Check out the features and benefits of NRI FDs listed below before investing:

  • NRI FDs offer a higher interest rate than regular savings accounts, making them a great way to grow your money.
  • They offer the security of a fixed interest rate, meaning you know how much your investment will grow.
  • NRI fixed deposits also provide the benefit of liquidity. If needed, NRIs can break their fixed deposit and access the funds before maturity.
  • NRI Fixed Deposits offer a flexible tenure, which means you can choose to deposit your money for one year, two years, three years, etc. This flexibility allows you to choose a tenure that best suits your needs and objectives.
  • NRI Fixed Deposits offer tax benefits under the Income Tax Act, 1961.
  • NRI FDs allow you to avail of overdraft and loan facilities.

Eligibility Criteria For NRI Fixed Deposits

NRI fixed deposit accounts are available to Non-Resident Indians who wish to invest their money in Indian banks. The eligibility criteria for these accounts vary from bank to bank, but generally, you need to cope with the following criteria:

  • The applicant must be an Indian citizen living abroad.
  • The applicant must have a valid passport.
  • The applicant must have a valid visa or work permit if required by the country of residence.
  • The applicant must have a resident Indian bank account.
  • The applicant must have a PAN card or Form 60

Additionally, An NRI is an Indian citizen who has migrated to another country for employment, business, or other reasons. He holds an Indian passport and has resided outside of India for at least 182 days in the financial year preceding the year of investment. NRIs are also known as Overseas Indians or Indian expatriates.

How To Open An NRI Fixed Deposit Account?

It is very simple to open an NRI fixed deposit account these days. You can contact a bank or an NBFC of your choice via their official websites. Once you have completed the formalities,the provider will open your FD account, and you can start making deposits.

Once you deposit money in your NRI fixed deposit account, it will earn interest at the chosen rate. At the end of the tenure, you can withdraw your money or renew your deposit for another term.

Interest Rates on NRI Fixed Deposits

NRI fixed deposits offer higher interest rates as compared to regular deposits, making them a popular choice for investment. The interest rates on NRI fixed deposits vary depending on the bank and the tenure of the deposit.  However, comparing interest rates between different banks before investing is important, as they can vary significantly. Additionally, check the terms and conditions of the deposit to ensure it meets your needs.

Frequently Asked Questions

Which bank is best for fixed deposits for NRI?

The Union Bank of India currently offers the best-fixed deposit rates for NRIs.

Can NRIs invest in FD in India?

Yes, NRIs can invest in FDs in India. The RBI determines the interest rates on FDs.

Is NRI fixed deposit taxable?

The NRE fixed deposit is exempted from tax, but on the other hand, the NRO fixed deposits are taxable in India.

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