NRE (Non-Resident External) Fixed Deposits are one of the best investments for NRIs/PIOs/OCIs because of two reasons:
- The interest rate is on the higher side as compared to their country of residence and
- the interest earned on NRE FD is tax free in India
This post compares the best interest rates on NRE FDs.
Best NRE FD Rates:
The table below compares the interest rates offered on various NRE fixed and recurring deposits along with the penalty on pre-closure of FD/RD across 45 major banks in India.
Deutsche Bank offers the highest interest rate with 8.25% for 5 years NRE FD.
IDFC Bank, DCB Bank, The Ratnakar Bank, Lakshmi Vilas Bank and Tamilnad Mercantile Bank offer highest interest rate across most tenures.
We have highlighted interest which is more than 7.00%.
| Banks | 1 Years | 2 Years | 3 Years | 4 Years | 5 Years | 5+ Years | Penalty |
| Allahabad Bank | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 1.00% |
| Andhra Bank | 6.60% | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% | 1.00% |
| Axis Bank | 7.40% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | No Penalty |
| Bandhan Bank | 7.00% | 7.05% | 7.10% | 7.10% | 6.40% | 6.40% | 1.00% |
| Bank of Baroda | 6.70% | 6.60% | 6.70% | 6.70% | 6.70% | 6.60% | 1.00% |
| Bank of India | 6.50% | 6.50% | 6.50% | 6.30% | 6.30% | 6.25% | No Penalty |
| Bank of Maharashtra | 6.50% | 6.60% | 6.60% | 6.00% | 6.00% | 6.00% | 1.00% |
| Canara Bank | 7.00% | 7.00% | 6.20% | 6.20% | 6.20% | 6.00% | 1.00% |
| Catholic Syrian Bank | 6.50% | 6.50% | 6.75% | 6.50% | 6.50% | 6.50% | No Penalty |
| Central Bank of India | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | No Penalty |
| Citibank | 5.50% | 6.50% | 6.00% | NA | NA | NA | 1.00% |
| City Union Bank | 7.10% | 7.10% | 7.10% | 7.10% | 7.10% | 6.70% | No Penalty |
| Corporation Bank | 6.50% | 6.80% | 6.50% | 6.50% | 6.50% | 6.50% | 1.00% |
| DCB Bank | 7.00% | 7.25% | 7.30% | 7.75% | 7.75% | 7.25% | No Penalty |
| Dena Bank | 6.60% | 6.60% | 6.60% | 6.25% | 6.30% | 6.30% | No Penalty |
| Deutsche Bank | 7.50% | 7.50% | 7.50% | 7.50% | 8.25% | NA | 1.00% |
| Dhanalakshmi Bank | 6.60% | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% | No Info |
| Federal Bank | 6.70% | 7.30% | 6.50% | 6.50% | 6.50% | 6.50% | 1.00% |
| HDFC Bank | 6.85% | 7.00% | 7.00% | 7.00% | 7.00% | 6.00% | 1.00% |
| ICICI Bank | 6.60% | 6.75% | 6.50% | 6.50% | 6.50% | 6.50% | 1.00% |
| IDBI Bank | 6.75% | 6.50% | 6.50% | 6.50% | 6.75% | 6.00% | No Penalty |
| IDFC Bank | 7.25% | 7.75% | 7.20% | 7.20% | 7.20% | 6.00% | No Info |
| Indian Bank | 6.60% | 6.25% | 6.25% | 6.00% | 6.00% | 6.00% | No Penalty |
| Indian Overseas Bank | 6.60% | 6.75% | 6.80% | 6.80% | 6.80% | 6.80% | 1.00% |
| Indus Ind Bank | 7.65% | 7.40% | 7.25% | 7.00% | 7.00% | 6.75% | 1.00% |
| J&K Bank | 7.00% | 7.00% | 7.00% | 6.25% | 6.25% | 6.25% | 1.00% |
| Karnataka Bank | 7.25% | 7.25% | 6.50% | 6.50% | 6.50% | 6.50% | No Penalty |
| Karur Vysya Bank | 6.75% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 1.00% |
| Kotak Mahindra Bank | 7.20% | 6.75% | 6.75% | 6.50% | 6.50% | 6.25% | 0.50% |
| Lakshmi Vilas Bank | 7.30% | 7.50% | 7.35% | 7.35% | 7.30% | 7.30% | No Penalty |
| Oriental Bank of Commerce | 6.60% | 6.60% | 6.60% | 6.70% | 6.75% | 6.75% | No Info |
| Punjab and Sind Bank | 6.75% | 6.75% | 6.60% | 6.55% | 6.55% | 6.55% | 1.00% |
| Punjab National Bank | 6.60% | 6.75% | 6.75% | 6.25% | 6.25% | 6.25% | No Info |
| Ratnakar Bank | 7.35% | 7.35% | 7.25% | 7.25% | 7.25% | 7.20% | No Info |
| South Indian Bank | 6.75% | 7.10% | 6.50% | 6.50% | 6.50% | 6.50% | No Penalty |
| Standard Charted Bank | 7.05% | 7.00% | 7.00% | 6.50% | 6.50% | NA | 1.00% |
| State Bank of India | 6.65% | 6.65% | 6.70% | 6.70% | 6.75% | 6.75% | No Penalty |
| Syndicate Bank | 6.70% | 6.75% | 6.60% | 6.60% | 6.60% | 6.50% | No Penalty |
| Tamilnad Mercantile Bank | 7.15% | 7.00% | 7.00% | 6.90% | 6.90% | 6.90% | 1.00% |
| UCO Bank | 6.60% | 6.60% | 6.40% | 6.40% | 6.40% | 6.40% | 1.00% |
| Union Bank of India | 6.75% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | No Penalty |
| United Bank of India | 6.10% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 1.00% |
| Vijaya Bank | 6.75% | 6.60% | 6.50% | 6.50% | 6.50% | 6.25% | No Info |
| Yes Bank | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% | No Penalty |
For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 3 slabs:
- FD for 1 to 2 years
- FD for 2 to 5 Years
- FD for 5 to 10 years
Also Read: 8 Mutual Funds that accept Investment from Canada/USA based NRIs
Interest Rate for NRE Fixed Deposit of 1 – 2 Years:
The highest interest rate is offered by IDFC Bank (731 days) at 7.75%.
| Bank | Description | Interest Rate |
| IDFC Bank | 731 days | 7.75% |
| Indus Ind Bank | 1 Years to below 1 Years 2 Months | 7.65% |
| Deutsche Bank | 1 Year to lass than 5 Years | 7.50% |
| Lakshmi Vilas Bank | 750 Days | 7.50% |
| Axis Bank | 12 months 5 days < 12 months 11 days | 7.40% |
| Indus Ind Bank | 1 Years 2 Months to below 2 Years | 7.40% |
| Ratnakar Bank | 12 months to less than 36 months | 7.35% |
| Federal Bank | 375 days | 7.30% |
| Lakshmi Vilas Bank | 1 Year to less than 2 Years | 7.30% |
| DCB Bank | 15 months to less than 24 months | 7.25% |
| IDFC Bank | 366 – 730 days | 7.25% |
| Karnataka Bank | 1 year to 2 years | 7.25% |
| Kotak Mahindra Bank | 365 Days to 390 Days | 7.20% |
| Tamilnad Mercantile Bank | 1 Year | 7.15% |
| Axis Bank | 1 year < 14 months | 7.10% |
| City Union Bank | 365 days – 5 Years | 7.10% |
| Kotak Mahindra Bank | 391 days – less than 2 years | 7.10% |
| South Indian Bank | 600 Days | 7.10% |
| Yes Bank | 18 Months 8 Days to 18 Months 18 Days | 7.10% |
| Bandhan Bank | 1 year to less than 2 years | 7.05% |
| Standard Charted Bank | 1 Year – 375 days | 7.05% |
| Axis Bank | 14 months < 10 Years | 7.00% |
| Canara Bank | Above 1 year to less than 2 years | 7.00% |
| DCB Bank | 6 months to less than 15 months | 7.00% |
| HDFC Bank | 1 year 17 days – 5 Years | 7.00% |
| J&K Bank | 1 year to less than 3 years | 7.00% |
| Karur Vysya Bank | 2 years and above | 7.00% |
| South Indian Bank | 15 months | 7.00% |
| Standard Charted Bank | 21 Months – 2 Years | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| Yes Bank | 1 Year <= 10 years | 7.00% |
| Standard Charted Bank | 18 Months – 21 Months | 6.95% |
| HDFC Bank | 1 year | 6.85% |
| Corporation Bank | 666 days only | 6.80% |
| Syndicate Bank | 500 days exact (Synd500) | 6.80% |
| Axis Bank | 1 Year < 17 months | 6.75% |
| Federal Bank | Above 1 year to 2 years | 6.75% |
| Punjab and Sind Bank | 1 Year – 2 Years | 6.75% |
| Punjab National Bank | 1 Year – 3 Years | 6.75% |
| Union Bank of India | 10 Month to 14 Month | 6.75% |
| Bank of Baroda | Above 1 year to 400 days | 6.70% |
| Corporation Bank | 555 days only | 6.70% |
| Federal Bank | 1 year | 6.70% |
| State Bank of India | Government Bank Benchmark | 6.65% |
| ICICI Bank | Private Bank Benchmark | 6.60% – 6.75% |
Also Read: 21 Hidden Charges in Saving Bank Account
Interest Rate for NRE Fixed Deposit of 2 – 5 Years
The highest interest rate is offered by Deutsche Bank (5 Years) at 8.25%
| Bank | Description | Interest Rate |
| Deutsche Bank | 5 Years | 8.25% |
| DCB Bank | 36 months to 60 months | 7.75% |
| City Union Bank | 1000 Days | 7.50% |
| Deutsche Bank | 1 Year to lass than 5 Years | 7.50% |
| Lakshmi Vilas Bank | 2 Years to less than 5 Years | 7.35% |
| Ratnakar Bank | 12 months to less than 36 months | 7.35% |
| DCB Bank | 24 months to 36 months | 7.30% |
| Indus Ind Bank | 2 years to below 3 years | 7.25% |
| Ratnakar Bank | 36 months to less than 120 months | 7.25% |
| Yes Bank | 36 Months 10 Days to 36 Months 20 Days | 7.25% |
| IDFC Bank | 732 Days – 10 Years | 7.20% |
| Bandhan Bank | 2 years to less than 5 years | 7.10% |
| City Union Bank | 365 days – 5 Years | 7.10% |
| Axis Bank | 14 months < 10 Years | 7.00% |
| HDFC Bank | 1 year 17 days – 5 Years | 7.00% |
| Indus Ind Bank | 3 years to below 61 month | 7.00% |
| J&K Bank | 1 year to less than 3 years | 7.00% |
| Karur Vysya Bank | 2 years and above | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| Yes Bank | 1 Year <= 10 years | 7.00% |
| Tamilnad Mercantile Bank | 3 Years & above | 6.90% |
| Indian Overseas Bank | 3 Yrs and above | 6.80% |
| Catholic Syrian Bank | 3 Years | 6.75% |
| Indian Overseas Bank | 2 yrs to < 3yrs | 6.75% |
| Kotak Mahindra Bank | 2 years- less than 3 years | 6.75% |
| Punjab National Bank | 1 Year – 3 Years | 6.75% |
| State Bank of India | Government Bank Benchmark | 6.65% – 6.70% |
| ICICI Bank | Private Bank Benchmark | 6.50% |
Also Read: Best FCNR Deposit Rates for US Dollars & SGD (Singapore NRIs)
Interest Rate for NRE Fixed Deposit of 5 – 10 Years
The highest interest rate is offered by Lakshmi Vilas Bank (5 Years to 10 Years) at 7.30%.
| Bank | Description | Interest Rate |
| Lakshmi Vilas Bank | 5 Years to 10 Years | 7.30% |
| DCB Bank | More than 60 months to 120 months | 7.25% |
| Ratnakar Bank | 36 months to less than 120 months | 7.25% |
| IDFC Bank | 732 Days – 10 Years | 7.20% |
| Axis Bank | 14 months < 10 Years | 7.00% |
| Indus Ind Bank | 3 years to below 61 month | 7.00% |
| Karur Vysya Bank | 2 years and above | 7.00% |
| Yes Bank | 1 Year <= 10 years | 7.00% |
| Tamilnad Mercantile Bank | 3 Years & above | 6.90% |
| Indian Overseas Bank | 3 Yrs and above | 6.80% |
| City Union Bank | Above 5 years & up to 10 years | 6.70% |
| State Bank of India | Government Bank Benchmark | 6.75% |
| ICICI Bank | Private Bank Benchmark | 6.50% |
Best NRE Fixed Deposit Interest Rates for NRIs – June 2018
NRE FD/RD – Rules:
Before you invest in NRE FDs you must be aware of following rules:
1. The minimum tenure for NRE FD/RD is 1 year (as per RBI Directives from July 17, 2003).
2. The maximum deposit tenure offered by most banks is 10 years.
3. The interest earned on NRE FD is tax free in India but it can be taxed in country of your residence. For e.g. USA taxes worldwide income and hence NRIs from USA may have to pay tax in USA.
4. NRE Fixed Deposit makes excellent investment opportunity for NRIs from lower or NO income tax countries like UAE, Singapore, etc.
Also Read: NRE Vs NRO – Which is the right account for NRIs?
5. The principal and interest from NRE FD/RD is freely repatriable.
6. Most banks offer higher interest rate on lower deposit amount (less than Rs 50 lakhs/1 crore). It makes sense to split your FD in multiple smaller FDs to get the highest interest rate.
NRE Fixed Deposit – Lower Interest on Higher Amount – Bank of Baroda Example
7. There is NO additional interest for Senior Citizens or bank staff for NRE deposits.
8. Premature closure of FD/RD is permitted for with some penalty on the interest (usually 1% lower interest than applicable rates). Some banks waive off this penalty. However there would be NO interest in case the NRE deposit remained invested for less than 1 year.
9. The interest is compounded quarterly for most banks
10. Only funds from overseas income (in foreign currency) can be deposited for NRE FD/RD account. The amount is converted to Indian Rupee on deposit.
I believe the interest rate will be revised soon by RBI and the people who can wait for some time will see more good levels in near future…hope for the best..thanks for you really sincere efforts for compiling this useful information..
Plz mail me uodates