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 Lakshmi Vilas Bank (450 days) at 8.40%. IDFC First 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% | 7.30% | 7.30% | 7.25% | 7.25% | 7.00% |
| Bandhan Bank | 7.35% | 7.65% | 7.50% | 7.50% | 7.50% | 7.50% |
| Bank of Baroda | 6.85% | 7.00% | 6.70% | 6.70% | 6.70% | 6.70% |
| Bank of India | 6.70% | 6.75% | 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 | 6.75% | 6.70% | 6.60% | 6.00% | 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% | 6.55% | 6.55% | 6.55% | 6.55% |
| City Union Bank | 7.35% | 7.35% | 7.60% | 7.35% | 7.35% | 6.70% |
| Corporation Bank | 6.80% | 7.00% | 6.50% | 6.50% | 6.50% | 6.50% |
| DCB Bank | 7.40% | 8.15% | 8.25% | 7.75% | 7.75% | 7.25% |
| Deutsche Bank | 7.75% | 7.50% | 7.50% | 7.50% | 8.25% | NA |
| Dhanalakshmi Bank | 7.00% | 7.25% | 6.50% | 6.50% | 6.50% | 6.50% |
| Federal Bank | 7.30% | 7.40% | 7.40% | 7.25% | 7.25% | 7.25% |
| HDFC Bank | 7.30% | 7.30% | 7.40% | 7.25% | 7.25% | 6.50% |
| ICICI Bank | 6.90% | 7.10% | 7.50% | 7.25% | 7.25% | 7.00% |
| IDBI Bank | 7.25% | 7.20% | 7.30% | 6.85% | 6.85% | 6.25% |
| IDFC First Bank | 7.75% | 8.25% | 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 | 7.30% | 7.30% | 7.00% | 7.00% | 7.00% | 6.50% |
| Karur Vysya Bank | 7.25% | 7.25% | 7.00% | 7.00% | 7.00% | 7.00% |
| Kotak Mahindra Bank | 7.20% | 7.10% | 7.00% | 7.00% | 7.00% | 6.50% |
| Lakshmi Vilas Bank | 7.75% | 8.40% | 7.85% | 7.85% | 7.85% | 7.85% |
| Oriental Bank of Commerce | 7.00% | 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 | 7.00% | 6.85% | 6.75% | 6.25% | 6.25% | 6.25% |
| Ratnakar Bank | 8.00% | 8.05% | 7.60% | 7.60% | 7.60% | 7.60% |
| South Indian Bank | 7.40% | 7.45% | 7.25% | 7.25% | 7.25% | 7.25% |
| Standard Charted Bank | 7.40% | 7.50% | 7.00% | 6.50% | 6.50% | NA |
| State Bank of India | 7.00% | 6.75% | 6.70% | 6.70% | 6.60% | 6.60% |
| Syndicate Bank | 6.70% | 7.15% | 7.15% | 7.15% | 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 | 7.25% | 7.65% | 7.65% | 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), Suryoday Small Finance Bank (950 Days) & Utkarsh Small Finance Bank (456 Days to less than 2 years) offers 9% while SBI (for 24 to 36 months deposit) offers 6.75% 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% | 8.20% | 8.55% | 8.55% | 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% | 8.50% | 9.00% | 8.50% | 8.50% | 7.00% |
| Suryoday Small Finance Bank | 7.75% | 8.50% | 8.75% | 9.00% | 8.00% | 8.25% | 7.25% |
| Ujjivan Small Finance Bank | 7.50% | 8.30% | 8.60% | 7.50% | 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 | 6.40% | 7.00% | 6.75% | 6.70% | 6.70% | 6.60% | 6.60% |
Updated: June 1, 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 Lakshmi Vilas Bank (450 days) at 8.40%.
| Bank | Description | Interest Rate |
| Lakshmi Vilas Bank | 450 Days | 8.40% |
| IDFC First Bank | 731 days | 8.25% |
| DCB Bank | 18 months | 8.15% |
| DCB Bank | 15 months to 24 months | 8.05% |
| Ratnakar Bank | 12 months to less than 24 months | 8.00% |
| Deutsche Bank | 1 Year to less than 1.5 Years | 7.75% |
| IDFC First Bank | 366 – 730 days | 7.75% |
| Indus Ind Bank | 1 Years 4 Months to below 3 Years | 7.75% |
| Bandhan Bank | Above 18 months to less than 2 years | 7.65% |
| Yes Bank | 2 years to less than 3 years | 7.65% |
| 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% |
| DCB Bank | 24 months | 7.50% |
| Deutsche Bank | 1.5 Years to less than 5 Years | 7.50% |
| Standard Charted Bank | 18 Months – 2 Years | 7.50% |
| DCB Bank | 12 months 1 day to less than 15 months | 7.40% |
| South Indian Bank | 1 year | 7.40% |
| Standard Charted Bank | 1 Year – 375 days | 7.40% |
| Bandhan Bank | 1 year to 18 months | 7.35% |
| City Union Bank | 365 days – 5 Years | 7.35% |
| Axis Bank | 1 year 25 days < 3 years | 7.30% |
| Federal Bank | 550 days | 7.30% |
| Federal Bank | Above 1 year to 2 Years | 7.30% |
| HDFC Bank | 1 year – 2 Years | 7.30% |
| J&K Bank | 1 year to less than 5 years | 7.30% |
| Karnataka Bank | 1 year to 2 years | 7.30% |
| Kotak Mahindra Bank | 390 Days (12 months 25 days) | 7.30% |
| Kotak Mahindra Bank | 390 Days (12 months 25 days) | 7.30% |
| Dhanalakshmi Bank | 500 Days | 7.25% |
| IDBI Bank | 1 year | 7.25% |
| Karur Vysya Bank | 1 year to less than 2 years | 7.25% |
| Kotak Mahindra Bank | 391 Days – 23 Months | 7.25% |
| Tamilnad Mercantile Bank | 1 Year | 7.25% |
| Yes Bank | 1 Year <= 10 years | 7.25% |
| IDBI Bank | >1yrs to 2yrs | 7.20% |
| Kotak Mahindra Bank | 365 Days to 389 Days ; 23 months 1 Day- less than 2 years | 7.20% |
| Syndicate Bank | Above 2 to less than 5 yrs | 7.15% |
| Axis Bank | 1 year < 1 year 25 days | 7.10% |
| Kotak Mahindra Bank | 2 years- less than 3 years | 7.10% |
| Syndicate Bank | 500 days exact | 7.05% |
| Bank of Baroda | 444 days | 7.00% |
| Corporation Bank | 666 days only | 7.00% |
| DCB Bank | 6 months to 12 months | 7.00% |
| Dhanalakshmi Bank | 365 days and above upto & inclusive of 2 years | 7.00% |
| Punjab National Bank | 1 year | 7.00% |
| South Indian Bank | Above 1 year to up to and incl. 2 years | 7.00% |
| Standard Charted Bank | 376 days < 18 Months | 7.00% |
| Syndicate Bank | 400 days exact | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| State Bank of India | Government Bank Benchmark | 7.00% |
| ICICI Bank | Private Bank Benchmark | 6.90% – 7.10% |
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) & DCB Bank (36 months) at 8.25%
| Bank | Description | Interest Rate |
| DCB Bank | 36 months | 8.25% |
| Deutsche Bank | 5 Years | 8.25% |
| Ratnakar Bank | 24 months to less than 36 months | 8.05% |
| 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 | 7.65% |
| City Union Bank | 1000 Days | 7.60% |
| 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% |
| Bandhan Bank | 2 years to less than 7 years | 7.50% |
| Deutsche Bank | 1.5 Years to less than 5 Years | 7.50% |
| IDFC First Bank | 732 – 5 Years | 7.50% |
| Indus Ind Bank | 3 years to below 61 Months | 7.45% |
| South Indian Bank | 2 years to upto and incl. 3 years | 7.45% |
| Federal Bank | Above 2 years to less than 3 years | 7.40% |
| HDFC Bank | 2 years – 3 Years | 7.40% |
| City Union Bank | 365 days – 5 Years | 7.35% |
| Axis Bank | 1 year 25 days < 3 years | 7.30% |
| IDBI Bank | 1100 Days | 7.30% |
| J&K Bank | 1 year to less than 5 years | 7.30% |
| Axis Bank | 3 years < 5 years | 7.25% |
| Federal Bank | 3 years and above | 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% |
| Syndicate Bank | Above 2 to less than 5 yrs | 7.15% |
| Kotak Mahindra Bank | 2 years- less than 3 years | 7.10% |
| IDBI Bank | >2 yrs to < 3 yrs | 7.05% |
| Karur Vysya Bank | 2 years and above | 7.00% |
| Kotak Mahindra Bank | 3 years and above but less than 5 years | 7.00% |
| Oriental Bank of Commerce | 1 Year to less than 2 Years | 7.00% |
| Standard Charted Bank | 2 Years – 3 Years | 7.00% |
| Tamilnad Mercantile Bank | 1 Year to less than 3 Years | 7.00% |
| Tamilnad Mercantile Bank | 3 Years & above | 6.90% |
| State Bank of India | Government Bank Benchmark | 6.70% – 6.75% |
| ICICI Bank | Private Bank Benchmark | 7.25% – 7.50% |
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 Ratnakar Bank (36 months to less than 120 months) at 7.60%.
| Bank | Description | Interest Rate |
| Ratnakar Bank | 36 months to less than 120 months | 7.60% |
| Bandhan Bank | 2 years to less than 7 years | 7.50% |
| 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% |
| Federal Bank | 3 years and above | 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% |
| Axis Bank | 5 years to 10 years | 7.00% |
| Karur Vysya Bank | 2 years and above | 7.00% |
| State Bank of India | Government Bank Benchmark | 6.60% |
| ICICI Bank | Private Bank Benchmark | 7.00% |
Best NRE Fixed Deposit Interest Rates for NRIs – June 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,
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