What are NRI FD Interest Rates?
NRI FD interest rates represent the returns earned by Non-Resident Indians on fixed deposits held in India. The deposit amount, tenure, and type of NRI account, such as NRE or NRO, typically influence them. The NRI account interest rates vary from regular FD interest rates due to the specific nature of NRI investments, and they generally provide higher returns than standard savings accounts.
NRI FD Interest Rates of Top Leading Banks in India
The following are the current NRI Fixed Deposit interest rates offered by leading banks in India on deposits of less than ₹3 crore:
| Bank Name |
1 Year (% p.a.) |
More than 1 Year to 3 Years (% p.a.) |
More than 3 Years (%p.a.) |
| State Bank of India |
6.25 |
6.25 - 6.60 |
6.05 - 6.30 |
| HDFC Bank |
6.25 |
6.25 - 6.60 |
6.15 - 6.40 |
| ICICI Bank |
6.25 |
6.25 - 6.60 |
6.60 |
| Axis Bank |
6.25 |
6.25 - 6.60 |
6.60 |
| Canara Bank |
NA |
5.90 - 6.15 |
5.90 |
| Union Bank of India |
6.25 |
6.00 - 6.30 |
5.90 |
| IDBI Bank |
6.55 |
6.35 - 6.55 |
5.95 - 6.35 |
| Indian Overseas Bank |
6.60 |
6.20 - 6.70 |
6.20 |
| UCO Bank |
6.25 |
6.15 - 6.45 |
6.00 - 6.10 |
| Bank of India |
6.25 |
6.25 - 6.70 |
6.00 - 6.25 |
| Bank of Baroda |
6.25 |
6.25 - 6.50 |
6.00 - 6.40 |
| Federal Bank |
6.25 |
6.50 - 6.70 |
6.50 |
| IndusInd Bank |
6.75 |
6.75 - 7.00 |
6.50 - 6.65 |
| South Indian Bank |
6.60 |
6.10 - 6.20 |
5.70 - 6.20 |
| Yes Bank |
6.65 |
6.75 - 7.00 |
6.75 - 7.00 |
| IDFC FIRST Bank |
6.30 |
6.30 - 7.00 |
6.00 - 7.00 |
| Kotak Mahindra Bank |
6.25 |
6.25 - 7.00 |
6.25 - 6.40 |
| Central Bank of India |
6.85 |
6.85 - 7.00 |
6.75 - 7.00 |
| J&K Bank |
6.50 |
6.50 - 7.00 |
6.50 - 6.75 |
| City Union Bank |
6.75 |
6.65 |
6.25 |
*Fixed Interest Rates for NRI as of December 2025.
Key Features of NRI Fixed Deposits
Here are the key features of NRI Fixed Deposits, which make them an attractive investment option for NRIs:
- Deposit in Indian Rupees: Money placed in a fixed deposit for NRIs can be kept in Indian Rupees (INR), providing a simple investment.
- Account Closure Flexibility: The NRI Fixed Deposit account allows flexibility, and investors may close the account whenever needed.
- Flexible Tenure Options: NRI Fixed Deposits have different tenures that generally vary between 1 year and 10 years to suit different financial needs.
- Auto-Renewal Facilities: Banks offer auto-renewal facilities for NRI Fixed Deposits, once the FD reaches its maturity date.
- Loans against NRE Deposits: Some banks give NRIs the facility to take loans against their NRE deposits, providing depositors with convenient financial flexibility whenever necessary.
- Overdraft Facility on NRE Deposits: Banks also offer up to 90% overdraft facilities on the NRE deposits without the FD being closed.
- Joint Holding of NRE Deposits: NRE Fixed Deposits can be held jointly in certain banks, which gives the flexibility of managing the investment.
- Tax-Saver Fixed Deposits: Banks also provide tax-saver Fixed Deposits to NRIs so that they can receive tax benefits under Section 80C of the Income Tax Act.
- Deposit Amount Requirement: Generally, banks set minimum and maximum limits on the FD for NRIs, which determine how much funds can be invested. For example, some banks ask for a minimum deposit of ₹10,000 and set a maximum deposit of ₹1 crore for an NRI Fixed Deposit, while others apply different limits too.
Difference Between NRE and NRO Fixed Deposits
NRI (Non-Resident Indian) refers to customers of Indian origin staying abroad. At the same time, NRE (Non-Resident External) is a particular bank account designed for NRIs to handle their foreign income in India. The table below sets out the differences between NRE and NRO:
| Parameter |
NRE Accounts |
NRO Accounts |
| Explanation |
Designed for NRIs to transfer foreign income to India, with deposits converted into Indian rupees. |
Used by NRIs to manage income earned in India, in Indian denominations. |
| Tax |
Both principal and interest are tax-exempt in India. |
Interest is taxable and subject to TDS. |
| Transferability |
Depositors are allowed to repatriate the principal and interest fully overseas. |
Funds are repatriable within limits (USD 1 million per year) after paying applicable taxes. |
| Joint Account |
It can be opened with another NRI only. |
It can be opened with either an NRI or an Indian resident. |
Eligibility Criteria for NRI Fixed Deposit
Depositors need to fulfil specific criteria to open an NRI Fixed Deposit account:
- Residency Status: Investor must be an NRI, Person of Indian Origin (PIO), or Overseas Citizen of India (OCI)
- Indian Bank Account: The person should have an NRE or NRO account
- Age: The age is usually 18 years or above, but this can vary.
- Valid Passport and Visa: An authentic passport and visa are needed as evidence of the NRI status.
- Address Proof: Proof of address in the country of stay should be presented.
Documents Required for NRI Fixed Deposits
The following documents are typically required for opening an NRI Fixed Deposit account:
- Passport Copy (for proof of NRI status)
- Visa Copy (or any valid proof of residence abroad)
- Photograph (recent passport-sized photo)
- Address Proof (in the country of residence)
- PAN Card (for tax purposes)
Tax Implications on NRI Fixed Deposits
NRI Fixed Deposit interest attracts tax in India. How it is taxed varies with the type of FD account chosen by the investors:
- NRE FDs: The interest on NRE FDs is not subject to tax in India for investors.
- NRO FDs: Interest earned on NRO FDs is subject to TDS, usually at 30%. Investors may be eligible for a refund when tax is paid in their resident country as per the Double Taxation Avoidance Agreement (DTAA).
The table below shows TDS rates on NRO Fixed Deposit interest depending on the overall interest earned:
| Total Interest Earned |
NRO Tax Rate |
| Less than or equal to ₹50 Lakh |
31.2% (30% TDS + 0% Surcharge + 4% Cess) |
| Between ₹50 Lakh and ₹1 Crore |
34.32% (30% TDS + 10% Surcharge + 4% Cess) |
| Between ₹1 Crore and ₹2 Crore |
35.88% (30% TDS + 15% Surcharge + 4% Cess) |
| Between ₹2 Crore and ₹5 Crore |
39% (30% TDS + 25% Surcharge + 4% Cess) |
| Beyond ₹5 Crore (Old Tax Regime) |
42.74% (30% TDS + 37% Surcharge + 4% Cess) |
Key Takeaways
The interest rate on NRI FDs generally ranges from 5.70% p.a. to 7.10% p.a., making it a secure investment option for Non-Resident Indians planning to invest in India. When choosing between NRE and NRO Fixed Deposits, customers must consider factors including repatriation rules and taxation. Interest on NRE FDs is tax-free, but NRO FDs are subject to TDS. To get the best returns, it's essential to compare the NRI interest rates, required documents, and eligibility criteria.
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