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.
Contents
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.
The highest interest rate on fixed deposit is offered by IDFC First Bank (2 years) at 8.50%. Lakshmi Vilas Bank, DCB Bank, The Ratnakar Bank, Lakshmi Vilas Bank and Tamilnad Mercantile Bank offer highest interest rate across most tenures.
| Banks | 1 Years | 2 Years | 3 Years | 4 Years | 5 Years | 5+ Years |
| Allahabad Bank | 6.75% | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% |
| Andhra Bank | 6.00% | 6.00% | 6.10% | 6.10% | 6.10% | 6.10% |
| Axis Bank | 6.45% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Bandhan Bank | 6.95% | 6.95% | 6.95% | 6.75% | 6.75% | 6.75% |
| Bank of Baroda | 6.30% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% |
| Bank of India | 6.40% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% |
| Bank of Maharashtra | 6.00% | 6.00% | 5.75% | 5.50% | 5.50% | 5.50% |
| Canara Bank | 6.40% | 6.00% | 6.25% | 6.25% | 6.25% | 6.25% |
| Catholic Syrian Bank | 6.50% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% |
| Central Bank of India | 6.30% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% |
| Citibank | 4.75% | 5.00% | 5.00% | 5.25% | 5.25% | 5.25% |
| City Union Bank | 6.60% | 6.35% | 6.35% | 6.35% | 6.35% | 6.30% |
| Corporation Bank | 6.50% | 6.55% | 6.35% | 6.35% | 6.35% | 6.35% |
| DCB Bank | 7.50% | 7.60% | 7.70% | 7.50% | 7.50% | 7.25% |
| Deutsche Bank | 7.00% | 7.00% | 7.25% | 7.50% | 7.75% | x |
| Dhanalakshmi Bank | 6.90% | 6.90% | 6.50% | 6.50% | 6.50% | 6.50% |
| Federal Bank | 6.60% | 6.70% | 6.60% | 6.60% | 6.60% | 6.60% |
| HDFC Bank | 6.30% | 6.40% | 6.40% | 6.30% | 6.30% | 6.30% |
| ICICI Bank | 6.30% | 6.30% | 6.40% | 6.40% | 6.40% | 6.40% |
| IDBI Bank | 6.45% | 6.40% | 6.45% | 6.25% | 6.25% | 6.25% |
| IDFC First Bank | 7.25% | 7.50% | 7.25% | 7.25% | 7.25% | 7.25% |
| Indian Bank | 6.40% | 6.30% | 6.25% | 6.25% | 6.25% | 6.25% |
| Indian Overseas Bank | 6.25% | 6.35% | 6.25% | 6.25% | 6.25% | 6.25% |
| Indus Ind Bank | 6.65% | 6.75% | 6.75% | 6.75% | 6.75% | 6.65% |
| J&K Bank | 6.30% | 6.35% | 6.35% | 6.35% | 6.00% | 6.00% |
| Karnataka Bank | 6.60% | 6.60% | 6.50% | 6.50% | 6.50% | 6.30% |
| Karur Vysya Bank | 6.35% | 6.45% | 6.45% | 6.45% | 6.45% | 6.45% |
| Kotak Mahindra Bank | 6.10% | 6.00% | 6.00% | 6.00% | 5.90% | 5.90% |
| Lakshmi Vilas Bank | 7.80% | 7.50% | 7.60% | 7.50% | 7.25% | 7.25% |
| Oriental Bank of Commerce | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% |
| Punjab and Sind Bank | 6.45% | 6.45% | 6.45% | 6.45% | 6.45% | 6.45% |
| Punjab National Bank | 6.30% | 6.30% | 6.25% | 6.25% | 6.25% | 6.30% |
| Ratnakar Bank | 7.45% | 7.50% | 7.50% | 7.25% | 7.40% | 7.40% |
| South Indian Bank | 6.60% | 6.90% | 6.60% | 6.60% | 6.60% | 6.60% |
| Standard Charted Bank | 6.50% | 6.60% | 6.60% | 6.60% | 6.60% | 6.60% |
| State Bank of India | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% |
| Syndicate Bank | 6.40% | 6.50% | 6.25% | 6.25% | 6.25% | 6.25% |
| Tamilnad Mercantile Bank | 6.85% | 6.90% | 6.75% | 6.75% | 6.75% | 6.75% |
| UCO Bank | 6.30% | 6.30% | 6.30% | 6.25% | 6.25% | 6.25% |
| Union Bank of India | 6.40% | 6.45% | 6.30% | 6.30% | 6.30% | 6.30% |
| United Bank of India | 6.50% | 6.25% | 6.25% | 6.00% | 6.00% | 6.00% |
| Yes Bank | 7.40% | 7.50% | 7.50% | 7.25% | 7.25% | 7.25% |
Also Read: 8 Mutual Funds that accept Investment from Canada/USA based NRIs
Small Banks NRE Fixed Deposit Interest Rates:
RBI on September 2015 had granted licence to 10 Small Finance Banks. Lately these banks have been in news for offering higher interest rates on their fixed deposits as compared to regular banks.
The table below compares the interest rate offered by Small banks to that of SBI. The difference is substantial for low tenure deposits.
| Banks | 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | 5 Year+ |
| AU Small Finance Bank | 7.63% | 7.77% | 7.77% | 7.50% | 7.50% | 7.25% |
| Capital Small Finance Bank | 6.90% | 6.90% | 6.90% | 6.90% | 6.80% | 6.80% |
| Equitas Small Finance Bank | 8.00% | 7.80% | 7.80% | 7.00% | 7.00% | 7.00% |
| ESAF Small Finance Bank | 8.00% | 8.00% | 7.75% | 7.30% | 7.30% | 7.30% |
| Fincare Small Finance Bank | 8.00% | 8.50% | 9.00% | 8.00% | 8.00% | 7.00% |
| Jana Small Finance Bank | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | 7.00% |
| Suryoday Small Finance Bank | 8.25% | 8.50% | 8.50% | 8.00% | 9.00% | 7.25% |
| Ujjivan Small Finance Bank | 8.00% | 8.00% | 7.50% | 7.00% | 7.00% | 6.50% |
| Utkarsh Small Finance Bank | 8.20% | 8.50% | 8.00% | 8.00% | 8.35% | 7.75% |
| SBI | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% | 6.10% |
Updated: January 8, 2020
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
Interest Rate for NRE Fixed Deposit of 1 – 2 Years:
The highest interest rate is offered by Lakshmi Vilas Bank (450 days) at 7.80%.
| Bank | Description | Interest Rate |
| Lakshmi Vilas Bank | 450 Days | 7.80% |
| DCB Bank | 18 months | 7.60% |
| DCB Bank | 15 months to less than 24 months | 7.50% |
| IDFC First Bank | 500 days | 7.50% |
| Lakshmi Vilas Bank | 365 Days to less than 5 Years | 7.50% |
| Ratnakar Bank | 12 months to less than 24 months | 7.45% |
| Yes Bank | 12 Months 10 Days to 12 Months 20 Days | 7.40% |
| Yes Bank | 18 Months 8 Days to 18 Months 18 Days | 7.40% |
| DCB Bank | 12 months 1 day to less than 15 months | 7.25% |
| IDFC First Bank | 1 year – 10 Years | 7.25% |
| Yes Bank | 1 Year to <= 2 years | 7.25% |
| DCB Bank | 12 months | 7.00% |
| Deutsche Bank | > 1 Yr – 3 Yrs | 7.00% |
| Bandhan Bank | 1 year to less than 3 years | 6.95% |
| Dhanalakshmi Bank | 1 Year and above upto & inclusive of 2 years | 6.90% |
| South Indian Bank | 2 years | 6.90% |
| Tamilnad Mercantile Bank | 1 Year – < 2 years | 6.85% |
| Allahabad Bank | 1 year to less than 2 years | 6.75% |
| Indus Ind Bank | Above 1 Years 4 Months to below 61 months | 6.75% |
| Federal Bank | 20 months | 6.70% |
| Indus Ind Bank | 1 Year to 1 Years 4 Months | 6.65% |
| Allahabad Bank | 2 years to less than 3 years | 6.60% |
| City Union Bank | 2 Year | 6.60% |
| Federal Bank | Above 1 year | 6.60% |
| Karnataka Bank | 1 year to 2 Years | 6.60% |
| South Indian Bank | 1 year to less than 2 years | 6.60% |
| Standard Charted Bank | 18M < 3 Yrs | 6.60% |
| Corporation Bank | 666 days | 6.55% |
| Axis Bank | 18 Months to 10 years | 6.50% |
| Catholic Syrian Bank | 1 Year | 6.50% |
| Corporation Bank | 1 year | 6.50% |
| Digibank by DBS | 1 year to 375 days | 6.50% |
| Standard Charted Bank | 1yr – 375days | 6.50% |
| Syndicate Bank | Above 13 months to upto 2 years | 6.50% |
| United Bank of India | 1 Year | 6.50% |
| Axis Bank | 1 year 25 days < 13 months | 6.45% |
| Corporation Bank | 555 days only | 6.45% |
| IDBI Bank | 1 year | 6.45% |
| Punjab and Sind Bank | 1 Year – 10 Years | 6.45% |
| Union Bank of India | 555 Days | 6.45% |
| Axis Bank | 1 year < 18 months | 6.40% |
| Canara Bank | 1 year only | 6.40% |
| IDBI Bank | > 1 year – 2 years | 6.40% |
| Syndicate Bank | 1 Year exact to 13 months | 6.40% |
| Union Bank of India | 444 Days | 6.40% |
| Indian Overseas Bank | 444 days | 6.35% |
| Karur Vysya Bank | 1 year to less than 2 years | 6.35% |
| State Bank of India | Government Bank Benchmark | 6.10% |
| ICICI Bank | Private Bank Benchmark | 6.20% – 6.30% |
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 DCB Bank (36 months) at 7.70%
| Bank | Description | Interest Rate |
| DCB Bank | 36 months | 7.70% |
| Lakshmi Vilas Bank | 990 Days | 7.60% |
| DCB Bank | More than 36 months to 60 months | 7.50% |
| Deutsche Bank | > 4 Yrs – < 5 Yrs | 7.50% |
| Lakshmi Vilas Bank | 365 Days to less than 5 Years | 7.50% |
| Ratnakar Bank | 24 months to less than 36 months | 7.50% |
| Yes Bank | 2 years < 3 years | 7.50% |
| DCB Bank | 24 months to less then 36 months | 7.40% |
| Deutsche Bank | > 3 Yrs – 4 Yrs | 7.25% |
| IDFC First Bank | 1 year – 10 Years | 7.25% |
| Ratnakar Bank | 36 months to less than 60 months | 7.25% |
| Yes Bank | 3 Years to <= 10 years | 7.25% |
| Deutsche Bank | > 1 Yr – 3 Yrs | 7.00% |
| Bandhan Bank | 1 year to less than 3 years | 6.95% |
| Tamilnad Mercantile Bank | 2 years < 3 years | 6.90% |
| Bandhan Bank | 3 years to up to 10 years | 6.75% |
| Indus Ind Bank | Above 1 Years 4 Months to below 61 months | 6.75% |
| Tamilnad Mercantile Bank | 3 years – 10years | 6.75% |
| Allahabad Bank | 2 years to less than 3 years | 6.60% |
| Federal Bank | Above 1 year | 6.60% |
| South Indian Bank | Above 2 years to up to 10 years | 6.60% |
| Standard Charted Bank | 18M < 3 Yrs | 6.60% |
| Allahabad Bank | 3 years to less than 10 years | 6.50% |
| Axis Bank | 18 Months to 10 years | 6.50% |
| Dhanalakshmi Bank | Above 2 years upto 10 years | 6.50% |
| Digibank by DBS | 3 years and above | 6.50% |
| Karnataka Bank | Above 2 Year to 5 years | 6.50% |
| Standard Charted Bank | 3 Yrs <= 5 Yrs | 6.50% |
| IDBI Bank | 1111 days | 6.45% |
| Karur Vysya Bank | 2 years and above | 6.45% |
| Punjab and Sind Bank | 1 Year – 10 Years | 6.45% |
| State Bank of India | Government Bank Benchmark | 6.10% |
| ICICI Bank | Private Bank Benchmark | 6.40% |
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 Deutsche Bank (5 years) at 7.75%.
| Bank | Description | Interest Rate |
| Deutsche Bank | 5 Yrs | 7.75% |
| Ratnakar Bank | 60 months to less than 120 months | 7.40% |
| DCB Bank | More than 60 months to 120 months | 7.25% |
| IDFC First Bank | 1 year – 10 Years | 7.25% |
| Lakshmi Vilas Bank | 5 Years to 10 Years | 7.25% |
| Yes Bank | 3 Years to <= 10 years | 7.25% |
| Bandhan Bank | 3 years to up to 10 years | 6.75% |
| Tamilnad Mercantile Bank | 3 years – 10years | 6.75% |
| Indus Ind Bank | 61 month and above | 6.65% |
| Federal Bank | Above 1 year | 6.60% |
| South Indian Bank | Above 2 years to up to 10 years | 6.60% |
| Allahabad Bank | 3 years to less than 10 years | 6.50% |
| Axis Bank | 18 Months to 10 years | 6.50% |
| Dhanalakshmi Bank | Above 2 years upto 10 years | 6.50% |
| Digibank by DBS | 3 years and above | 6.50% |
| Standard Charted Bank | 3 Yrs <= 5 Yrs | 6.50% |
| Karur Vysya Bank | 2 years and above | 6.45% |
| Punjab and Sind Bank | 1 Year – 10 Years | 6.45% |
| City Union Bank | Above 5 years and upto 10 years | 6.30% |
| State Bank of India | Government Bank Benchmark | 6.10% |
| ICICI Bank | Private Bank Benchmark | 6.40% |
Best NRE Fixed Deposit Interest Rates for NRIs – January 2020
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 would like to know about full detail nro .as a nri can we deposit cash money in my nro account or any third person can deposit it .if possible then per fincial year how much can deposit in account and what is tax applicable on it .if I tranffer my money from abroad how taxation would come .
One more question which is best nre or nro account to invest in India.
Mu mother want to give some money how can I take it from mother which account can deposit its taxable or not .
Pl clear all details related to nro account
Thanks
NRO – Anyone can deposit money to your NRO account. It like a saving acct but NRO status. Tax implication is higher for interest earned.
NRI is better as all interest earned is tax free. You can only deposit funds from aboard to NRI. You cannot deposit money from India to NRI Account. You can also withdraw money from NRI Account. Certain countries has tax implication on NRI as well, please check with your accountant.
Hi,
Can you update FCNR for EUR.
I can but the FCNR interest rate on EUR is very low something in the range of 0.01% to 0.15%. So its not beneficial and hence not published widely.
Hi,
I just want to know @NRE FD in Deutsche bank is safe , which is best bank to deposit our money as an NRI
Thanks for your reply..
Yogesh
Yes its safe… deposit in bank which is easily accessible to you.
It’s interesting to see IDFC Bank offering an interest rate of 8.25%. Thanks Amit for sharing all the statistics.
Hello,
Good Day!
For Suryoday Small Finance Bank, interest rate of 9.5% p.a. is for 950 days as special tenures, not 3 years.
Fincare Bank do not offer fixed deposits for NRIs
Thank you so much for the update. I have made changes in the post!
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