NRE FD Rate: An NRI can deposit his overseas income into an Indian account using an NRE fixed deposit account, which is effectively a term deposit. Thus, the foreign cash is changed into Indian Rupees. This account can be opened by an individual, an NRI, or a close relative of the resident Indian.
Note that principal and interest from an NRE FD can be fully repatriated into any bank account in the nation where you are currently residing. In fact, as an NRE FD retains funds in Indian Rupee, exchange rates will be used. However, utilising your money in the currency of your choice has many advantages.
Here are NRE fixed deposit interest rates offered by PSU banks in India like SBI, Bank of Baroda, PNB, Bank of India and Canara Bank.
SBI NRE FD rates
SBI offers interest rates for terms of one year to ten years that range from 6.50 percent to 7.10 percent for amounts below Rs 2 crore. The new rates are applicable from February 15, 2023. No interest is payable if the deposit is withdrawn before one year.
|Tenors||Below Rs.2 Crore||Rs.2 Crore & above|
|1 year to less than 2 years||6.80%||6.75%|
|400 Days (AMRIT KALASH)||7.10%||–|
|2 years to less than 3 years||7.00%||6.50%|
|3 years to less than 5 years||6.50%||6.00%|
|5 years to 10 years||6.50%||6.00%|
Bank of Baroda NRE FD rates
Bank of Baroda offers interest rate between 6.75% to 7.25% on tenure from 1 year to 10 years for amounts below Rs 2 crore. The highest rate of 7.25% is offered on Baroda Tiranga Plus Deposit Scheme.
Canara Bank NRE FD rates
Canara Bank offers interest rate between 6.80% to 7.25% on tenures ranging from 1 year to 10 years for amounts below Rs 2crore. The highest interest rate is paid on tenure of 444 days. Note that NRE Term deposits are auto renewed only once as the Non-resident status is to be confirmed.
|Tenure||Rate of Interest|
|1 year only.||7|
|Above 1 year to less than 2 years.||6.9|
|2 years & above to less than 3 years.||6.85|
|3 years & above to less than 5 years.||6.8|
|5 years & above to 10 years.||6.7|
PNB NRE FD rates
PNB offers interest rate between 6.50% to 7.25% on tenures ranging from 1 year to 10 years for amounts below Rs 2crore. The highest interest rate is paid on tenure of 444 days.
|Sl. No||Period||Revised Wef. 01.06.2023|
|2||above 1 year to 443 days||6.8|
|4||444 days to 2 years||6.8|
|5||above 2 year & upto 3 years||7|
|6||above 3 year & upto 5 years||6.5|
|7||above 5 years & upto 10 years|
Bank of India NRE FD rates
Bank of India offers interest rate between 6% to 7% on tenures ranging from 1 year to 10 years for amounts below Rs 2crore. The highest interest rate is paid on one year tenure.
|MATURITY||FOR DEPOSITS OF LESS THAN RS.2 CR.|
|Rate w.e.f 26.05.2023|
|Above 1 Year to less than 2 Years||6|
|2 Years to less than 3 Years||6.75|
|3 Years to less than 5 Years||6.5|
|5 Years to less than 8 Years||6|
|8 years & above to 10 Years||6|
Tax on an NRE FD in India
According to the IndusInd Bank website, “Another feature of an NRE FD that excites several investors is that it is exempt from taxation in India. So, you don’t have to pay any tax on either the interest or the principal component of the FD. Even at the most competitive ROI, you pay zero tax and can fully repatriate the amount to your country of residence!”