What is an NRE Fixed Deposit?
An NRE Fixed Deposit is a type of term deposit account that can be opened using an NRE (Non-Resident External) savings account. It allows NRIs and PIOs to park their foreign income in Indian rupees (INR) and earn attractive interest on it. The interest earned and the principal amount are both fully repatriable, meaning they can be transferred back to your country of residence without any restriction.
You can earn interest rates up to 7.81% per annum, depending on the bank and deposit tenure, with flexible durations ranging from 1 year to 10 years.
Comparing NRE FD Interest Rates Across Banks
Here's a quick comparison of current NRE FD interest rates:
| Bank |
Interest Rate (p.a.) |
Minimum Deposit |
| HDFC Bank |
3.00-7.05% |
₹10,000 |
| ICICI Bank |
3.00-7.05% |
₹10,000 |
| SBI Bank |
6.70-7.00% |
₹1 Lakh |
| HSBC |
4.00-7.00% |
₹25,000 |
| Axis Bank |
6.70-7.05% |
₹12,000 |
| Yes Bank |
3.00-5.00% |
₹10,000 |
Note: Rates may vary based on deposit amount and bank policies. Always verify before investing.
Top Banks Offering the Best NRE FD Rates in India (2025)
Here’s a closer look at the top 6 banks offering the most competitive interest rates and NRE FD benefits in 2025:
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HDFC Bank NRE Fixed Deposit
HDFC Bank is known for offering some of the highest NRE FD interest rates in India.
Key Benefits:
-
Partial withdrawal facility available
-
Joint account facility with another eligible NRI
-
Funds fully repatriable
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Easy fund transfers to your country of residence
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ICICI Bank NRE Fixed Deposit
ICICI Bank allows NRIs to save their foreign earnings in INR while earning attractive returns.
Key Benefits:
-
Interest earned is tax-free in India
-
Repatriable principal and interest
-
Loans up to 90% of the FD value (max ₹500 lakh)
-
Simple and paperless online booking process
-
SBI NRE Fixed Deposit
State Bank of India (SBI) is the largest public sector bank in India and a trusted name for NRIs across the globe.
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SBI NRE FD Rates: 6.50% to 7.00% p.a. for deposits below ₹2 crore
-
Minimum Deposit: ₹1,000 (general branches), ₹50,000 to ₹1 lakh (metro/semi-urban)
-
Interest Payment: Quarterly
Key Benefits:
-
Zero balance account opening
-
Full repatriability of principal and interest
-
Loan/overdraft facility available against FD
-
Interest can be credited to NRE savings account
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HSBC NRE Fixed Deposit
HSBC Bank, a global financial leader, offers NRIs the opportunity to invest in India with confidence.
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Tenure: 1 to 5 years
-
Minimum Deposit: ₹25,000
Key Benefits:
-
Competitive NRE FD rates
-
Complete repatriability of funds
-
Global banking experience with local support
-
Online account opening facility
-
Axis Bank NRE Fixed Deposit
Axis Bank allows you to open NRE FDs using any convertible foreign currency.
Key Benefits:
-
Tax-free interest in India
-
Overdraft facility up to 85% of the FD value
-
Premature withdrawal allowed
-
Nomination facility available
-
Yes Bank NRE Fixed Deposit
Yes Bank offers one of the highest interest rates among private banks for NRE deposits.
Key Benefits:
-
Book FD online from anywhere
-
Flexible deposit terms
-
Repatriable principal and interest
-
Partial withdrawals permitted
Features of NRE Fixed Deposits
Investing in an NRE FD comes with several key features:
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Deposits held in Indian Rupees (INR)
-
Tenure: Ranges from 1 to 10 years
-
Auto-renewal available at maturity
-
Tax-free interest in India
-
Loans and overdraft facilities available against FDs
-
Joint account holding permitted with another eligible NRI
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Tax-saving FDs under Section 80C (conditions apply)
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Premature withdrawal is allowed, though penalties may apply depending on the bank
Eligibility for NRE Fixed Deposit
To open an NRE FD, the following eligibility criteria must be met:
Documents Required to Open an NRE FD
Here’s what you’ll need to provide to open an NRE FD:
Why Choose NRE FDs?
Here are some reasons why NRIs prefer NRE FDs as an investment option:
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Attractive interest rates, often higher than global savings products
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Zero taxation on interest income in India
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Safe and secure investment backed by Indian banks
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Complete repatriation of both principal and interest
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Premature withdrawal options available in emergencies
-
Joint account and nomination facilities for easy succession
How to Open an NRE FD Account Online
Opening an NRE Fixed Deposit account online is quick and convenient. Whether you're sitting in New York, Dubai, or Singapore, you can apply remotely without visiting a physical branch in India. Here’s how:
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Choose your preferred bank offering competitive NRE FD rates.
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Ensure you have an active NRE savings account with that bank.
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Visit the bank’s website or download their official app (or use aggregator platforms).
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Fill the online FD application form with your personal and deposit details.
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Upload required documents like passport, visa and proof of NRI status.
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Fund your FD using your NRE account.
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Once submitted, the bank will process your application, and your FD will be created.
Final Thoughts
If you're an NRI looking for tax-free, low-risk, and fully repatriable returns, an NRE Fixed Deposit is one of the smartest investment options in India. With interest rates going up to 7.75% p.a., you get the dual advantage of capital safety and decent returns, especially when compared to overseas savings instruments. Thanks to digital banking and specialised apps, opening an NRE FD is now easier than ever with no paperwork, no branch visits, and no delays. All you need is a best NRE savings account and access to online banking, and you’re good to go.
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