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 | 6.80% | 6.80% | 6.75% | 6.75% | 6.75% | 6.50% |
| Axis Bank | 7.10% | 7.00% | 7.00% | 7.00% | 6.75% | 6.75% |
| Bandhan Bank | 7.35% | 7.65% | 7.65% | 7.65% | 7.65% | 7.65% |
| Bank of Baroda | 6.45% | 6.60% | 6.45% | 6.45% | 6.45% | 6.45% |
| Bank of India | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Bank of Maharashtra | 6.50% | 6.50% | 6.50% | 6.25% | 6.25% | 6.25% |
| Canara Bank | 6.70% | 6.50% | 6.40% | 6.40% | 6.00% | 6.00% |
| Catholic Syrian Bank | 7.00% | 6.75% | 6.75% | 6.50% | 6.50% | 6.50% |
| Central Bank of India | 6.65% | 6.65% | 6.45% | 6.45% | 6.45% | 6.45% |
| Citibank | 5.50% | 6.50% | 6.50% | 6.00% | 6.00% | 6.00% |
| City Union Bank | 7.35% | 7.00% | 7.00% | 7.00% | 7.00% | 6.70% |
| Corporation Bank | 6.80% | 7.00% | 6.50% | 6.50% | 6.50% | 6.50% |
| DCB Bank | 7.40% | 7.85% | 8.00% | 7.75% | 7.75% | 7.25% |
| Deutsche Bank | 7.35% | 7.00% | 7.25% | 7.25% | 8.00% | NA |
| Dhanalakshmi Bank | 7.00% | 7.00% | 6.50% | 6.50% | 6.50% | 6.50% |
| Federal Bank | 7.00% | 7.25% | 7.00% | 7.00% | 7.00% | 7.00% |
| HDFC Bank | 7.00% | 7.30% | 7.30% | 7.25% | 7.25% | 7.00% |
| ICICI Bank | 6.90% | 7.00% | 7.30% | 7.25% | 7.25% | 7.00% |
| IDBI Bank | 7.10% | 7.05% | 6.90% | 6.85% | 6.85% | 6.25% |
| IDFC First Bank | 7.75% | 8.50% | 7.50% | 7.50% | 7.50% | 7.25% |
| Indian Bank | 6.75% | 6.60% | 6.75% | 6.75% | 6.90% | 6.50% |
| Indian Overseas Bank | 6.60% | 6.75% | 6.80% | 6.80% | 6.80% | 6.80% |
| Indus Ind Bank | 7.60% | 7.75% | 7.75% | 7.35% | 7.35% | 7.25% |
| J&K Bank | 7.30% | 7.30% | 7.30% | 7.30% | 7.30% | 6.50% |
| Karnataka Bank | 7.10% | 7.10% | 7.00% | 7.00% | 7.00% | 6.50% |
| Karur Vysya Bank | 7.10% | 7.05% | 7.00% | 7.00% | 7.00% | 7.00% |
| Kotak Mahindra Bank | 7.00% | 7.00% | 7.00% | 6.90% | 6.75% | 6.50% |
| Lakshmi Vilas Bank | 7.75% | 8.40% | 7.85% | 7.85% | 7.85% | 7.85% |
| Oriental Bank of Commerce | 6.85% | 6.75% | 6.75% | 6.70% | 6.75% | 6.75% |
| Punjab and Sind Bank | 7.00% | 6.80% | 6.80% | 6.55% | 6.55% | 6.55% |
| Punjab National Bank | 6.75% | 6.85% | 6.75% | 6.50% | 6.50% | 6.50% |
| Ratnakar Bank | 7.90% | 8.00% | 7.60% | 7.60% | 7.60% | 7.60% |
| South Indian Bank | 7.30% | 7.30% | 7.30% | 7.25% | 7.25% | 7.25% |
| Standard Charted Bank | 7.20% | 7.20% | 7.00% | 6.50% | 6.50% | NA |
| State Bank of India | 6.80% | 6.70% | 6.60% | 6.60% | 6.50% | 6.50% |
| Syndicate Bank | 6.50% | 6.70% | 6.50% | 6.50% | 6.50% | 6.50% |
| Tamilnad Mercantile Bank | 7.25% | 7.00% | 7.00% | 6.90% | 6.90% | 6.90% |
| UCO Bank | 6.60% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% |
| Union Bank of India | 6.75% | 6.60% | 6.60% | 6.70% | 6.70% | 6.70% |
| United Bank of India | 6.25% | 6.25% | 6.25% | 6.00% | 6.00% | 6.00% |
| Yes Bank | 7.85% | 7.75% | 7.75% | 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. Fincare Bank (24 months 1 day to 36 months) offers 9% while SBI (for 24 to 36 months deposit) offers 6.70% only.
| Banks | <1 year | 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | 5 Year+ |
| AU Small Finance Bank | 7.01% | 7.01% | 7.87% | 8.10% | 7.77% | 7.77% | 7.30% |
| Capital Small Finance Bank | 7.15% | 7.80% | 7.80% | 7.80% | 7.80% | 7.65% | 7.40% |
| Equitas Small Finance Bank | 7.50% | 8.00% | 8.30% | 8.30% | 7.00% | 7.00% | 7.00% |
| ESAF Small Finance Bank | 7.50% | 8.50% | 8.50% | 7.30% | 7.30% | 7.30% | 7.30% |
| Fincare Small Finance Bank | 7.00% | 8.00% | 9.00% | 9.00% | 8.00% | 8.00% | 7.00% |
| Jana Small Finance Bank | 8.50% | 8.50% | 8.60% | 8.50% | 8.00% | 8.00% | 6.75% |
| Suryoday Small Finance Bank | 7.75% | 8.35% | 8.75% | 8.75% | 8.00% | 8.25% | 7.25% |
| Ujjivan Small Finance Bank | 7.50% | 8.10% | 8.10% | 8.50% | 7.00% | 7.00% | 6.50% |
| Utkarsh Small Finance Bank | 7.50% | 8.50% | 9.00% | 7.85% | 7.00% | 8.00% | 7.00% |
| SBI | 6.25% | 6.80% | 6.80% | 6.70% | 6.60% | 6.50% | 6.50% |
Updated: August 5, 2019
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 IDFC First Bank (2 Years) at 8.50%.
| Bank | Description | Interest Rate |
| IDFC First Bank | 2 years | 8.50% |
| Lakshmi Vilas Bank | 450 Days | 8.40% |
| Ratnakar Bank | 12 months to less than 24 months | 7.90% |
| DCB Bank | 18 months | 7.85% |
| Yes Bank | 12 Months 10 Days to 12 Months 20 Days | 7.85% |
| DCB Bank | 15 months to 24 months | 7.80% |
| IDFC First Bank | 1 year 1 day – less than 2 years | 7.75% |
| Indus Ind Bank | 1 Years 4 Months to below 3 Years | 7.75% |
| Yes Bank | 2 years to less than 3 years | 7.75% |
| Indus Ind Bank | 1 Years to below 1 Years 4 Months | 7.60% |
| Lakshmi Vilas Bank | 1 Year to less than 3 years | 7.60% |
| Yes Bank | 18 Months 8 Days to 18 Months 18 Days | 7.55% |
| Bandhan Bank | Above 18 months to less than 2 years | 7.50% |
| DCB Bank | 24 months | 7.50% |
| DCB Bank | 12 months 1 day to less than 15 months | 7.40% |
| Bandhan Bank | 1 year to 18 months | 7.35% |
| City Union Bank | 1 year | 7.35% |
| Deutsche Bank | 1 Year to less than 1.5 Years | 7.35% |
| J&K Bank | 1 year to less than 5 years | 7.30% |
| South Indian Bank | 1 year to up to and including 3 years | 7.30% |
| Federal Bank | 20 months | 7.25% |
| Tamilnad Mercantile Bank | 1 Year | 7.25% |
| Yes Bank | 1 Year <= 10 years | 7.25% |
| Axis Bank | 1 year 25 days < 14 months | 7.20% |
| Standard Charted Bank | 18 Months – 2 Years | 7.20% |
| Standard Charted Bank | 1yr – 375days | 7.20% |
| Axis Bank | 1 year < 1 year 25 days | 7.10% |
| HDFC Bank | 1 year 17 days – 2 Years | 7.10% |
| IDBI Bank | 1 year | 7.10% |
| Karnataka Bank | 1 year to 2 years | 7.10% |
| Karur Vysya Bank | 1 year to less than 2 years | 7.10% |
| IDBI Bank | >1yrs to 2yrs | 7.05% |
| Axis Bank | 14 months < 5 years | 7.00% |
| City Union Bank | Above 1 year to 5 years | 7.00% |
| Corporation Bank | 666 days only | 7.00% |
| DCB Bank | 6 months to 12 months | 7.00% |
| Deutsche Bank | 1.5 Years to less than 3 Years | 7.00% |
| Dhanalakshmi Bank | 1 Year and above upto & inclusive of 2 years | 7.00% |
| Federal Bank | Above 1 year | 7.00% |
| HDFC Bank | 1 year – 1 Year 16 days | 7.00% |
| Kotak Mahindra Bank | 12 months and above but less than 3 years | 7.00% |
| Punjab National Bank | 1 year | 7.00% |
| Standard Charted Bank | 376 days < 18 Months | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| State Bank of India | Government Bank Benchmark | 6.80% |
| ICICI Bank | Private Bank Benchmark | 6.90% – 7.00% |
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), Deutsche Bank (5 Years) & Ratnakar Bank (24 months to less than 36 months) at 8.00%
| Bank | Description | Interest Rate |
| DCB Bank | 36 months | 8.00% |
| Deutsche Bank | 5 Years | 8.00% |
| Ratnakar Bank | 24 months to less than 36 months | 8.00% |
| DCB Bank | 36 months to 60 months | 7.75% |
| Indus Ind Bank | 1 Years 4 Months to below 3 Years | 7.75% |
| Lakshmi Vilas Bank | 3 Years to 10 Years | 7.75% |
| Yes Bank | 2 years to less than 3 years | 7.75% |
| Bandhan Bank | 2 years to less than 10 years | 7.65% |
| DCB Bank | 24 months to 36 months | 7.60% |
| Lakshmi Vilas Bank | 1 Year to less than 3 years | 7.60% |
| Ratnakar Bank | 36 months to less than 120 months | 7.60% |
| IDFC First Bank | 2 years 1 day – 5 years | 7.50% |
| Indus Ind Bank | 3 years to below 61 Months | 7.45% |
| HDFC Bank | 2 years 1day – 3 Years | 7.30% |
| J&K Bank | 1 year to less than 5 years | 7.30% |
| South Indian Bank | 1 year to up to and including 3 years | 7.30% |
| Deutsche Bank | 3 Years to less than 5 Years | 7.25% |
| HDFC Bank | 3 years 1day – 5 years | 7.25% |
| South Indian Bank | 3 years and above up to and incl. 10 years | 7.25% |
| Yes Bank | 1 Year <= 10 years | 7.25% |
| Karur Vysya Bank | 2 Years to less than 3 Years | 7.05% |
| Axis Bank | 14 months < 5 years | 7.00% |
| City Union Bank | Above 1 year to 5 years | 7.00% |
| Deutsche Bank | 1.5 Years to less than 3 Years | 7.00% |
| Federal Bank | Above 1 year | 7.00% |
| Karur Vysya Bank | 3 Years and above | 7.00% |
| Kotak Mahindra Bank | 12 months and above but less than 3 years | 7.00% |
| Standard Charted Bank | 2 Years – 3 Years | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| State Bank of India | Government Bank Benchmark | 6.60% – 6.70% |
| ICICI Bank | Private Bank Benchmark | 7.25% – 7.30% |
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 Bandhan Bank (2 years to less than 10 years) at 7.65%.
| Bank | Description | Interest Rate |
| Bandhan Bank | 2 years to less than 10 years | 7.65% |
| Ratnakar Bank | 36 months to less than 120 months | 7.60% |
| Lakshmi Vilas Bank | 12 Months to 120 Months | 7.50% |
| Indus Ind Bank | 3 years to below 61 Months | 7.45% |
| DCB Bank | More than 60 months to 120 months | 7.25% |
| IDFC First Bank | 5 years 1 Day – 10 years | 7.25% |
| Indus Ind Bank | 61 month and above | 7.25% |
| South Indian Bank | 3 years and above up to and incl. 10 years | 7.25% |
| Yes Bank | 1 Year <= 10 years | 7.25% |
| Federal Bank | Above 1 year | 7.00% |
| HDFC Bank | 5 years 1day – 10 Years | 7.00% |
| Karur Vysya Bank | 3 years and above | 7.00% |
| State Bank of India | Government Bank Benchmark | 6.50% |
| ICICI Bank | Private Bank Benchmark | 7.00% |
Best NRE Fixed Deposit Interest Rates for NRIs – August 2019
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.
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