NRI: Best Interest Rates Offered on NRE Deposits In India

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Non Resident Indians who are looking for fixed income with minimum risk can consider locking their funds in NRE Fixed Deposits. Interest earned on NRE Fixed Deposits are tax free in India.

While earlier, there was restriction on the interest rates offered by these banks as the interest rate was linked to LIBOR.

Until a few years bank NRE fixed deposit interest rates were around 3-4% as interest rates were linked to the LIBOR.

However, when the rupee started falling sharply the RBI decided to free interest rates on NRE Deposits. Many banks started offering interest rates similar to NRO or domestic deposit rates.

However, NRE Deposits offer tax advantage as the income is tax free. The amounts of interest earned and the capital is freely repatriable.

However, no interest is paid if NRE Fixed Deposit is withdrawn before completion of one year. Click to know the difference between NRE and NRO account.

NRI: Best Interest Rates Offered on NRE Deposits In India

If the money is withdrawn pre-maturely then bank charge some penalty between 0.5-1 % on the interest paid.

Punjab National Bank NRE Deposit Interest Rates

Punjab National Bank offers an interest rate for an amount upto 1 crore for 1 year to 5 year at 8.75% and 5 years to 10 years it is 8.50%.

Tenure Interest Rates
1 year to 5 years 8.75% 
5  to 10 years 8.50% 

Yes Bank

Yes Bank offers interest rate for an amount upto Rs 1 crore for 1 year to 18 months at 8.85%. For an 18 Months 8 Days to 18 Months 18 Days deposit the interest rate is 9% and 18 Months 19 Days to 10 Years is 8.75%.

Tenure Interest Rates
1 year -18 months 8.85% 
18 Months 8 Days to 18 Months 18 Days 9% 
18 Months 19 Days to 10 Years  8.75%

ICICI Bank NRE Deposit Interest Rates

ICICI Bank Offers from 1 year to 389 days at 8.00% for 390 to 5 years at 8.75% and 5 years - 10 years the interest rate if at 8.50%. If one withdraws funds before 1 year, it charges penalty at 1%.

Tenure Interest rates
1 year to 389 days 8.00% 
390 to 5 years 8.75% 

State Bank of India NRE Deposit Interest Rates

SBI offers interest rates for an amount upto Rs 1 crore for 1 year to 5 year at 8.50% and 5 years to 10 years it is 8.25 %. Penalty charged for premature withdrawal is 0.50%.

Tenure Interest Rates
1 year -5 years 8.50% 
5 to 10 years  8.25%

Axis Bank

For NRE Fixed Deposit Accounts for an amount upto Rs 5 crores interest rate is applicable at 8.50%. This is across all tenures.

Dhanalakshmi Bank

Dhanalaksmi offers interest rates for an amount upto 1 crore 365 days to 2 years it is 8.80% and 2 years to 10 years it is 8.70%.

Tenure Interest Rates
1 to 2 years 8.80% 
2-10 years 8.70% 

IndusInd Bank

Indusind Bank offers an interest rates for an amount upto Rs 1 crore 1 year to below 1 years 2 months at 8.75% and annualized yield is 9.04%.

For a period of 2 years to 6 years it varies from 8.75% to 9%. Penalty charged is around 1%.

Tenure Interest Rates
1 year to below 1 years 2 months 8.75%  
2 years to 6 years 8.75-9% 

HDFC Bank

HDFC Bank offers interest rates for an amount upto Rs 1 crore 1 year to 6 years at 8.75% and for remaining years it is 8.25%.

Tenure Interest Rates
1 year to 6 years 8.75% 
6-10 years 8.25% 

Kotak Bank

Kotak Bank offers interest rates for an amount upto 1 crore 1 year to 2 years it is 8.75% and for 2 to 4 years it is 8.50% and 5 to 10 years 8.25%.

Tenure Interest Rates
1 year to 2 years 8.75% 
2 to 4 years 8.50% 
5 to 10 years  8.25%

IDBI Bank

IDBI Bank offers interest rates for 1 year to 10 years at 8.60% .

Individuals who already have or planning to lock in Fixed deposit should be careful while withdrawing the funds as exchange rates may play a role in case of repatriation. It may also happen if you withdraw at the wrong time,  all your interest income may be wiped off.

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