Best Fixed Deposit Rates for NRE in 2024

Best NRE or Non-Resident External accounts can be of Recurring, Savings, or Fixed Deposit type wherein NRIs can easily deposit their foreign currency remitted to an Indian bank account. In India, an NRE account is held in Indian Rupees and is completely free of tax. Here, we are going to discuss how you will be able to select a suitable NRE FD and have mentioned the best fixed deposit interest rates offered by various Indian banks.

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Best NRE Fixed Deposit Interest Rates 2024

Bank Interest rate range per annum for an amount less than Rs.2 crore
1 year 3 years to 5 years 5 years to 10 years
Axis Bank 6.70% 7.10% 7.00%
Bank of Baroda 6.85% 6.50% 6.50%
Bank of India 7.25% 6.00% 6.00%
Bank of Maharashtra 6.35% 5.75% 5.75%
Canara Bank 7.00% NA NA
Central Bank of India 6.75% 6.50% 6.25%
Dena Bank 5.10% 5.30% 5.30%
Dhanlaxmi Bank 6.75% 6.60% 6.60%
Federal Bank 6.80% 7.00% 6.60%
IDBI bank 5.00% 5.10% 5.10%
Indian Bank 6.30% 6.25% 6.10%
Indian Overseas Bank 6.80% 6.80% 6.50%
IndusInd Bank 7.50% 7.25% 7.25%
J&K Bank 7.00% 6.25% 6.00%
Karnataka Bank 7.10% 6.50% 5.80%
Kotak Mahindra Bank 7.10% 7.00% 6.20%
Oriental Bank of Commerce 6.75% 6.50% 6.50%
Punjab and Sind Bank 6.20% 6.00% N/A
Punjab National Bank 6.75% 6.50% 6.50%
State Bank of India 6.80% 6.75% 6.50%
Syndicate Bank 6.90% 6.80% 6.70%
UCO bank 6.50% 6.20% 6.10%
Union Bank of India 6.75% 6.50% 6.50%
Vijaya Bank 6.75% 6.50% 6.50%
Yes Bank 6.25% 6.75% 6.75%

What are the Advantages of an NRE FD Account?

  • Both principal amount and interest earned by NRIs on NRE FDs are tax-free in India.

  • NRE FDs offer higher interest rates compared to regular savings accounts.

  • NRIs can freely repatriate the interest earned and principal amount to their country of residence.

  • Joint NRE FD accounts are permissible, allowing multiple NRIs to open accounts together.

  • NRE FDs are covered under Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance, providing compensation up to Rs. 5 lakh in case of bank default.

  • The tenure of NRE fixed deposits is flexible, ranging from 1 to 10 years.

What is the Difference Between NRE & NRO Account

For NRIs seeking optimal financial solutions, NRE (Non-Residential External) and NRO (Non-Resident) accounts stand out as key options. Choosing between them can impact your savings and returns significantly. 

The table below summarises the differences between NRO and NRE accounts:

Parameters  NRE Accounts  NRO Accounts
Explanation  This account facilitates Non-Resident Indians in transferring foreign income to India in any currency converted to Indian rupees. It is a type of account that helps a non-resident Indian manage the income earned in India in Indian denominations.
Tax  Deposits done in NRE accounts are free of taxes. The earned interest and the principal sum are exempted from tax.  The earned interest is taxable under NRO accounts. It is subjected to a Tax Deduction at Source or TDS.
Transferability  Money or deposits in the NRE accounts are transferable, i.e., repatriable. The earned interest and the principal amount are fully and freely transferable.  NRO account funds can be transferable after the payment of the applicable taxes within a set limit, i.e., USD 1 million in an FY (Financial year)
Joint Account  You are allowed to open this type of account with another NRI.  You are allowed to open this type of account with an NRI and/or with any Indian Resident.
Eligibility Conditions  NRE account is suitable for those who want to hold or maintain their overseas earnings in Indian currencies.  NRO accounts are suitable for individuals who wish to save their earnings from India in the Indian denomination itself. These incomes include income dividends, rent, property sales, etc.
Deposits  Deposits in NRE account are made in foreign currency  Deposits in NRO account are done in Indian and also in foreign currency
Withdrawals  Withdrawal in Indian currency  Withdrawal in Indian currency
Risk of Exchange Rate  Susceptible to risk  Non-susceptible to risk
Fluctuations in Currency  NRE deposits are exposed to the fluctuations of the exchange rate as well as loss of conversion  NRO deposits are not exposed to daily fluctuations in the currency.

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. 

What Benefits Do NRIs Get in NRE Fixed Deposit?

NRE Fixed Deposits for NRIs offer various benefits:

  • Deposits in Indian rupees are accepted.

  • Flexible tenures from one to ten years.

  • Easy closure anytime after opening.

  • Auto-renewal facility at maturity.

  • Some banks provide up to 90% overdraft.

  • Loans against NRE FDs are available.

  • Joint NRE FD accounts are allowed.

  • Minimum and maximum deposit amounts apply.

  • Tax-saver FDs for NRIs with benefits under section 80C of the Income-tax Act.

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Loan Against NRE FD

NRIs can save and invest in NRE FDs. They also provide complete transferability, and the interest earned is exempted from taxes. 

The key features of availing loan against NRE FD are:

  • NRIs can avail the loan to carry out business activities, buy property in India, or other financial needs.

  • The loan can be availed in Indian Rupees or Foreign currency against the NRE account deposit. 

  • The loan is provided to the NRI depositor only.

  • Interest rate is charged in both foreign currency and Indian rupee loans at monthly intervals.

  • NRE deposit is not permissible for premature withdrawal.

What is the Eligibility to Avail a Loan against NRE FD?

  • Investor’s passport must include name, date of birth, photograph, address, and signature; essential for NRI status verification.

  • Visa documents should display a work permit, permanent resident visa, employment visa, or residence permit to qualify as an NRI investor.

  • SBI and other insurers stipulate that NRI loan facilities against FD are exclusively for those with an NRE deposit account, requiring a 6-month residual period.

Insurers Offering Loans Against FD

Banks  Rate of Interest  Loan Amount
Axis Bank  2 % above the rate of term deposit  Rs. 25000
SBI  1 % above the rate of relative FD  Rs. 25000 – Rs. 5 Crore
HDFC Bank  2 % above the rate of FD  Up to 90% of your FD
Federal Bank 2 % above the rate of FD  Up to 90% of your FD

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

What is the Eligibility to Get NRE Fixed Deposits?

One should fulfil the below criteria for opening an NRE Fixed Deposit account:

  • You must be a Person of Indian Origin or Non-Resident Indian (NRI).

  • You need to have an active NRE Savings Account in India. This account will be used to fund your NRE FD and receive the interest earned.

What are the Documents Required to Open an NRE FD Account?

To open an NRE fixed deposit account, one has to submit the following documents:

  • A valid ID proof

  • Passport

  • Valid work visa

What are the Benefits of NRE FDs?

  • NRIs opening an NRE FD account enjoy benefits such as earning attractive interest rates.

  • NRE Fixed Deposits serve as a convenient source of funds in unforeseen situations, allowing premature closure.

  • Banks offer overdraft and loan facilities against NRE FDs, providing financial flexibility to NRIs.

  • Nominee facility is available for added security in NRE Fixed Deposits.

The Final Words!

Exploring the best fixed deposit rates for NRE accounts in 2024 can be a strategic financial move for NRIs, offering the potential for attractive returns and financial stability. It is advisable for NRIs to carefully assess the available options to make informed decisions aligning with their investment goals and preferences.

Best Fixed Deposit Rates for NRE in 2024

Best NRE or Non-Resident External accounts can be of Recurring, Savings, or Fixed Deposit type wherein NRIs can easily deposit their foreign currency remitted to an Indian bank account. In India, an NRE account is held in Indian Rupees and is completely free of tax. Here, we are going to discuss how you will be able to select a suitable NRE FD and have mentioned the best fixed deposit interest rates offered by various Indian banks.

Best NRE Fixed Deposit Interest Rates 2024

Bank Interest rate range per annum for an amount less than Rs.2 crore
1 year 3 years to 5 years 5 years to 10 years
Axis Bank 6.70% 7.10% 7.00%
Bank of Baroda 6.85% 6.50% 6.50%
Bank of India 7.25% 6.00% 6.00%
Bank of Maharashtra 6.35% 5.75% 5.75%
Canara Bank 7.00% NA NA
Central Bank of India 6.75% 6.50% 6.25%
Dena Bank 5.10% 5.30% 5.30%
Dhanlaxmi Bank 6.75% 6.60% 6.60%
Federal Bank 6.80% 7.00% 6.60%
IDBI bank 5.00% 5.10% 5.10%
Indian Bank 6.30% 6.25% 6.10%
Indian Overseas Bank 6.80% 6.80% 6.50%
IndusInd Bank 7.50% 7.25% 7.25%
J&K Bank 7.00% 6.25% 6.00%
Karnataka Bank 7.10% 6.50% 5.80%
Kotak Mahindra Bank 7.10% 7.00% 6.20%
Oriental Bank of Commerce 6.75% 6.50% 6.50%
Punjab and Sind Bank 6.20% 6.00% N/A
Punjab National Bank 6.75% 6.50% 6.50%
State Bank of India 6.80% 6.75% 6.50%
Syndicate Bank 6.90% 6.80% 6.70%
UCO bank 6.50% 6.20% 6.10%
Union Bank of India 6.75% 6.50% 6.50%
Vijaya Bank 6.75% 6.50% 6.50%
Yes Bank 6.25% 6.75% 6.75%

What are the Advantages of an NRE FD Account?

  • Both principal amount and interest earned by NRIs on NRE FDs are tax-free in India.

  • NRE FDs offer higher interest rates compared to regular savings accounts.

  • NRIs can freely repatriate the interest earned and principal amount to their country of residence.

  • Joint NRE FD accounts are permissible, allowing multiple NRIs to open accounts together.

  • NRE FDs are covered under Deposit Insurance and Credit Guarantee Corporation

(DICGC) insurance, providing compensation up to Rs. 5 lakh in case of bank default.

  • The tenure of NRE fixed deposits is flexible, ranging from 1 to 10 years.

What is the Difference Between NRE & NRO Account

For NRIs seeking optimal financial solutions, NRE (Non-Residential External) and NRO (Non-Resident) accounts stand out as key options. Choosing between them can impact your savings and returns significantly. 

The table below summarises the differences between NRO and NRE accounts:

Parameters  NRE Accounts  NRO Accounts
Explanation  This account facilitates Non-Resident Indians in transferring foreign income to India in any currency converted to Indian rupees. It is a type of account that helps a non-resident Indian manage the income earned in India in Indian denominations.
Tax  Deposits done in NRE accounts are free of taxes. The earned interest and the principal sum are exempted from tax.  The earned interest is taxable under NRO accounts. It is subjected to a Tax Deduction at Source or TDS.
Transferability  Money or deposits in the NRE accounts are transferable, i.e., repatriable. The earned interest and the principal amount are fully and freely transferable.  NRO account funds can be transferable after the payment of the applicable taxes within a set limit, i.e., USD 1 million in an FY (Financial year)
Joint Account  You are allowed to open this type of account with another NRI.  You are allowed to open this type of account with an NRI and/or with any Indian Resident.
Eligibility Conditions  NRE account is suitable for those who want to hold or maintain their overseas earnings in Indian currencies.  NRO accounts are suitable for individuals who wish to save their earnings from India in the Indian denomination itself. These incomes include income dividends, rent, property sales, etc.
Deposits  Deposits in NRE account are made in foreign currency  Deposits in NRO account are done in Indian and also in foreign currency
Withdrawals  Withdrawal in Indian currency  Withdrawal in Indian currency
Risk of Exchange Rate  Susceptible to risk  Non-susceptible to risk
Fluctuations in Currency  NRE deposits are exposed to the fluctuations of the exchange rate as well as loss of conversion  NRO deposits are not exposed to daily fluctuations in the currency.

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. 

What Benefits Do NRIs Get in NRE Fixed Deposit?

NRE Fixed Deposits for NRIs offer various benefits:

  • Deposits in Indian rupees are accepted.

  • Flexible tenures from one to ten years.

  • Easy closure anytime after opening.

  • Auto-renewal facility at maturity.

  • Some banks provide up to 90% overdraft.

  • Loans against NRE FDs are available.

  • Joint NRE FD accounts are allowed.

  • Minimum and maximum deposit amounts apply.

  • Tax-saver FDs for NRIs with benefits under section 80C of the Income-tax Act.

Loan Against NRE FD

NRIs can save and invest in NRE FDs. They also provide complete transferability, and the interest earned is exempted from taxes. 

The key features of availing loan against NRE FD are: 

  • NRIs can avail the loan to carry out business activities, buy property in India, or other financial needs.

  • The loan can be availed in Indian Rupees or Foreign currency against the NRE account deposit. 

  • The loan is provided to the NRI depositor only. 

  • Interest rate is charged in both foreign currency and Indian rupee loans at monthly intervals.

  • NRE deposit is not permissible for premature withdrawal. 

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What is the Eligibility to Avail a Loan against NRE FD? 

  • Investor’s passport must include name, date of birth, photograph, address, and signature; essential for NRI status verification.

  • Visa documents should display a work permit, permanent resident visa, employment visa, or residence permit to qualify as an NRI investor.

  • SBI and other insurers stipulate that NRI loan facilities against FD are exclusively for those with an NRE deposit account, requiring a 6-month residual period.

Insurers Offering Loans Against FD

Banks  Rate of Interest  Loan Amount
Axis Bank  2 % above the rate of term deposit  Rs. 25000
SBI  1 % above the rate of relative FD  Rs. 25000 – Rs. 5 Crore
HDFC Bank  2 % above the rate of FD  Up to 90% of your FD
Federal Bank 2 % above the rate of FD  Up to 90% of your FD

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

What is the Eligibility to Get NRE Fixed Deposits?

One should fulfil the below criteria for opening an NRE Fixed Deposit account:

  • You must be a Person of Indian Origin or Non-Resident Indian (NRI).

  • You need to have an active NRE Savings Account in India. This account will be used to fund your NRE FD and receive the interest earned.

What are the Documents Required to Open an NRE FD Account?

To open an NRE fixed deposit account, one has to submit the following documents:

  • A valid ID proof

  • Passport

  • Valid work visa

What are the Benefits of NRE FDs?

  • NRIs opening an NRE FD account enjoy benefits such as earning attractive interest rates.

  • NRE Fixed Deposits serve as a convenient source of funds in unforeseen situations, allowing premature closure.

  • Banks offer overdraft and loan facilities against NRE FDs, providing financial flexibility to NRIs.

  • Nominee facility is available for added security in NRE Fixed Deposits.

The Final Words!

Exploring the best fixed deposit rates for NRE accounts in 2024 can be a strategic financial move for NRIs, offering the potential for attractive returns and financial stability. It is advisable for NRIs to carefully assess the available options to make informed decisions aligning with their investment goals and preferences.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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