The highest interest rate among peers

Lakshmi Vilas Bank is offering an interest rate of 9.75 per cent on a three year NRE fixed deposit. A five year NRE fixed deposit also fetches an interest rate of 9.75 per cent , while a 2 year deposit fetches an interest rate of 9 per cent. This bank is not among the strongest private sector banks around.

Interest earned on NRE deposits are tax free

A 400 day NRE deposit at the South Indian Bank fetches an interest rate of 9.5 per cent, whereas a two year deposit presently has a coupon rate of 9.25 per cent. Interest earned on NRE deposits are tax free.

NRIs are only permitted to place deposits in NRE deposits

A 18-24 month deposit at Development Credit Bank provides an interest rate of 9.50 per cent. The interest rates is slightly reduced to 9.40 per cent on a 13 to 18 month tenure.

A strong South India based bank

A 1-2 year NRE fixed deposit at Karnataka Bank fetches an interest rate of 9.5 per cent. On the other hand the interest is lower at 9.25 per cent on tenures of 2-3 years.

A strong foreign bank

A 5 year fixed deposit at German Bank, Deutsche Bank gives an interest rate of 9.5 per cent. For a 2-3 year deposit the interest rate offered is reduced considerably to 8.25 per cent.