Bank of Maharashtra NRE Fixed Deposit Rates

Bank of Maharashtra is offering a wide range of fixed deposit schemes with a high rate of interest, i.e., 4.90% (p.a) (as of 8th January 2021) across specified terms to the Non-Resident Indian (NRI's)/ Person of Indian Origin (PIO's). NRI needs to open an NRE deposit account to transfer the money from overseas. The deposited money in the NRE FD account will be compounded on the FD interest rates (may change from time to time).

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The account holders will get the tax benefits on the principal amount and the interest earned. Moreover, the tenure of the FD account in the Bank of Maharashtra ranges from one year to more than five years. The invested amount and the interest earned are repatriable. 

Bank of Maharashtra NRE FD for NRIs Features

Bank of Maharashtra offers NRE fixed deposit accounts for the NRI's. In the NRE fixed deposit account, one has to invest some money to account for an opted tenure and applied interest rates. Upon completion of the specified term, the maturity amount, i.e., the principal amount and accumulated interest will be handed over to the NRE account holder. 

Some of the particulars of the Bank of Maharashtra NRE Fixed Deposit account and NRE FD interest rates are given below:

  • The NRE account has to be opened by the NRI himself. Power of attorney holders will not be allowed to open the NRE account on behalf of the NRI.
  • The NRE account will be kept in the form of Rupees.
  • Many options are available to the NRI to open the NRE account, such as Term deposit account, Recurring deposit account, current account, savings account, etc. 
  • NRI's option of joint NRE accounts can be availed where joint accounts can be opened by the two or more NRIs/ PIOs (or) NRI/ PIO with the resident relative in India (either survivor/ former) only as a power of attorney holder.
  • To open the NRE FD account in the Bank of Maharashtra, one needs to fulfil the requirements prescribed by the Bank. These include such as Remittance from abroad, proceed of the foreign currency notes/ the traveller’s cheques/ during the brief visit of the holder of the NRE FD account, proceed of the draft/ personal cheques, and the transfer from any existing NRE/ FCNR accounts of the same account holder. 
  • Power of attorney: NRI should give a Power of Attorney to the Indian resident for an NRE FD account to maintain the account for local payments and investments. 
  • Nomination option: For the NRE FD accounts, the nomination option is available for NRIs.

Bank of Maharashtra NRE FD Rates

NRI/ PIO can earn accrued interest at a specified NRE FD interest rate on the principal amount without tax. Also, the interest rates on the NRE account in the Bank of Maharashtra are compounded every three months.

Bank of Maharashtra NRE FD interest rates are given below:

NRE FD interest rates for < Rs. 2 crores: 

Non-Resident External (NRE) Fixed Deposits for the amount less than Rs. 2 crores (% per annum) (w.e.f 8th January 2021)

Fixed Deposit Tenure

Fixed deposit rate of interest (% p.a)

1 year (365 days) to 2 years

4.90%

Above 1 year to 2 years

4.90%

Above 2 years to 3 years

4.90%

Above 3 years to 5 years

4.90%

Above 5 years 

4.90%

Disclaimer: NRE FD interest rates in the Bank of Maharashtra are subjected to change from time to time at the bank's discretion or due to the market situations.

NRE FD Interest rates for senior citizens: No extra or additional interest rates are provided to the NRI senior citizens.

NRE FD interest rates for above Rs. 1 crore: 

Non-Resident External (NRE) Fixed Deposits for the amount less than Rs. 2 crores (% per annum) (w.e.f 10th July 2021)

Fixed Deposit Tenure

Fixed deposit rate of interest (% p.a)

1 year (365 days) to 2 years

5.00%

Above 1 year to 2 years

5.00%

Above 2 years to 3 years

5.00%

Above 3 years to 5 years

5.00%

Above 5 years 

5.00%

Disclaimer: NRE FD interest rates in the Bank of Maharashtra are subjected to change from time to time at the bank's discretion or due to the market situations.

NRE FD Interest rates for senior citizens: No extra or additional interest rates are provided for the NRI senior citizens.

Some of the fundamental points of Bank of Maharashtra NRE FD interest rates:

  • The tax saving scheme applies to the NRI's, who are the account holders in the Bank of Maharashtra NRE FD account. This tax-saving scheme is applicable according to the Bank Term Deposit Scheme, 2006. Moreover, this is a five-year tax saving scheme that applies to the NRI's up to only Rs. 1.5 lakhs.
  • Premature closure: The minimum period mentioned for the premature closure of an NRE FD account is one year. If the account holder prematurely closes their fixed deposit account within one year, then no interest/ penalty will be paid on the deposit amount.
  • When the account holder prematurely closes his NRE FD account over one year, the bank will impose a 1% penalty on the premature payments.
  • The rate of interest for NRE savings deposits is up to 2.75%.
  • Tax benefits: The income earned on the principal amount in the NRE FD account has the tax benefits, as there is no need to pay the tax on both. The balances on the account are also exempted from the wealth tax.
  • No extra interest is paid to the NRI senior citizens.

Approved Credits under NRE FD Account

Interest on the Government securities, dividends on the UTI, investments in shares and debentures (provided the said investments has to be made by the debit to NRE account), proceeds of the foreign currency cheques, drafts, traveller’s cheques, Remittance from abroad, which has to be in foreign currency, and proceeds from the existing NRE/ FCNR accounts of the account holder. 

Approved Debits under NRE FD Account

Remittances outside India, disbursements in India (local disbursements), transfer from the NRE account to another NRE/ FCNR accounts of the same account holder, and the investments in any Indian companies shares/ securities/ debentures (it is permitted subjected to the regulations). 

Conclusion

The Bank of Maharashtra is offering high interest rates on the NRE Fixed Deposit accounts. As a result, NRI's can earn compounded interest on the principal amount without paying the tax up to 1.5 lakhs. Also, all the funds held in the NRE account, along with interest earned, will be repatriated totally.

Written By: PolicyBazaar - Updated: 21 September 2021
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