Latest NRE Fixed Deposit Interest Rates – 2017
Compares the best interest rates on NRE FDs along with pre-closure penalty. Deutsche Bank offers the highest interest rate with 8% for 5 years NRE FD.
NRE (Non-Resident External) Fixed Deposits are one of the best investments for NRIs/PIOs/OCIs because of two reasons:
- The interest rate is on the higher side as compared to their country of residence and
- the interest earned on NRE FD is tax free in India
We compares the best interest rates on NRE FDs.
Best NRE FD Rates:
The table below compares the interest rates offered on various NRE fixed and recurring deposits along with the penalty on pre-closure of FD/RD across 45 major banks in India.
Deutsche Bank offers the highest interest rate with 8% for 5 years NRE FD.
DCB Bank, The Ratnakar Bank and Yes Bank offer highest interest rate across most tenures.
| Banks |
1 Year |
2 Years |
3 Years |
4 Years |
5 Years |
5+ Years |
Penalty for
Premature Closure |
| Allahabad Bank |
7.00% |
6.75% |
6.50% |
6.50% |
6.50% |
6.50% |
1.00% |
| Andhra Bank |
7.00% |
7.00% |
6.50% |
6.50% |
6.50% |
6.50% |
1.00% |
| Axis Bank |
7.00% |
7.10% |
6.75% |
6.75% |
6.75% |
6.75% |
No Penalty |
| Bandhan Bank |
7.50% |
7.25% |
6.90% |
6.90% |
6.90% |
6.50% |
1.00% |
| Bank of Baroda |
7.00% |
7.00% |
6.85% |
6.50% |
6.50% |
6.50% |
1.00% |
| Bank of India |
7.00% |
6.85% |
6.85% |
6.70% |
6.70% |
6.70% |
No Penalty |
| Bank of Maharashtra |
6.25% |
6.25% |
6.25% |
6.00% |
6.00% |
6.00% |
1.00% |
| Canara Bank |
6.90% |
6.90% |
6.90% |
6.90% |
6.90% |
6.90% |
1.00% |
| Catholic Syrian Bank |
6.50% |
6.50% |
6.75% |
6.50% |
6.50% |
6.50% |
No Penalty |
| Central Bank of India |
7.00% |
7.00% |
6.90% |
6.90% |
6.90% |
6.90% |
No Penalty |
| Citibank |
5.00% |
5.00% |
5.00% |
5.00% |
5.00% |
5.00% |
1.00% |
| City Union Bank |
7.10% |
6.85% |
6.85% |
6.85% |
6.85% |
6.70% |
1.00% |
| Corporation Bank |
6.90% |
6.90% |
6.80% |
6.80% |
6.80% |
6.80% |
1.00% |
| DCB Bank |
7.00% |
7.10% |
7.20% |
7.25% |
7.25% |
7.20% |
No Penalty |
| Dena Bank |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
No Penalty |
| Deutsche Bank |
6.00% |
6.90% |
7.00% |
7.25% |
8.00% |
NA |
1.00% |
| Dhanalakshmi Bank |
6.75% |
6.50% |
6.50% |
6.50% |
6.50% |
6.50% |
No Info |
| Federal Bank |
6.70% |
6.80% |
6.50% |
6.50% |
6.50% |
6.50% |
1.00% |
| HDFC Bank |
6.95% |
6.25% |
6.00% |
6.00% |
6.00% |
6.00% |
1.00% |
| ICICI Bank |
6.90% |
7.00% |
6.75% |
6.75% |
6.75% |
6.50% |
1.00% |
| IDBI Bank |
6.90% |
6.90% |
6.75% |
6.75% |
6.75% |
6.75% |
No Penalty |
| Indian Bank |
6.50% |
6.25% |
6.25% |
6.00% |
6.00% |
6.00% |
No Penalty |
| Indian Overseas Bank |
6.75% |
6.50% |
6.25% |
6.00% |
6.00% |
6.00% |
1.00% |
| Indus Ind Bank |
7.15% |
7.05% |
6.75% |
6.75% |
6.75% |
6.75% |
1.00% |
| J&K Bank |
6.75% |
6.75% |
6.75% |
6.75% |
6.75% |
6.75% |
1.00% |
| Karnataka Bank |
6.75% |
6.75% |
6.50% |
6.50% |
6.50% |
6.50% |
No Penalty |
| Karur Vysya Bank |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
1.00% |
| Kotak Mahindra Bank |
6.90% |
6.25% |
6.25% |
6.25% |
6.25% |
6.00% |
0.50% |
| Lakshmi Vilas Bank |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
No Penalty |
| Oriental Bank of Commerce |
7.00% |
6.75% |
6.75% |
6.50% |
6.75% |
6.75% |
No Info |
| Punjab and Sind Bank |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
NA |
1.00% |
| Punjab National Bank |
7.00% |
6.90% |
6.90% |
6.90% |
6.90% |
6.70% |
No Info |
| South Indian Bank |
6.75% |
6.75% |
6.50% |
6.50% |
6.50% |
6.50% |
No Penalty |
| Standard Charted Bank |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
NA |
1.00% |
| State Bank of India |
6.90% |
6.75% |
6.75% |
6.50% |
6.50% |
6.50% |
No Penalty |
| Syndicate Bank |
6.80% |
6.50% |
6.50% |
6.50% |
6.50% |
6.00% |
No Penalty |
| Tamilnad Mercantile Bank |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
7.00% |
1.00% |
| The Ratnakar Bank |
7.50% |
7.65% |
7.65% |
7.50% |
7.50% |
7.50% |
1.00% |
| UCO Bank |
7.00% |
6.90% |
6.90% |
6.75% |
6.75% |
6.75% |
1.00% |
| Union Bank of India |
7.00% |
6.80% |
6.80% |
6.80% |
6.80% |
6.80% |
No Penalty |
| United Bank of India |
6.50% |
6.25% |
6.25% |
6.25% |
6.25% |
6.25% |
1.00% |
| Vijaya Bank |
6.50% |
6.50% |
6.50% |
6.50% |
6.50% |
6.25% |
No Info |
| Yes Bank |
7.10% |
7.15% |
7.20% |
7.10% |
7.10% |
7.10% |
No Penalty |
For comparing the best interest rates on fixed deposits over different duration of investment, we have it divided into following 3 slabs:
- FD for 1 to 2 years
- FD for 2 to 5 Years
- FD for 5 to 10 years
Interest Rate for NRE Fixed Deposit of 1 – 2 Years:
The highest interest rate is offered by The Ratnakar Bank (24 months to less than 36 months) at 7.65%.
| Bank |
Description |
Interest Rate |
| The Ratnakar Bank |
24 months to less than 36 months |
7.65% |
| Bandhan Bank |
1 Year |
7.50% |
| The Ratnakar Bank |
12 months to less than 24 months |
7.50% |
| Standard Charted Bank |
1 year – 390 days |
7.25% |
| Indus Ind Bank |
1 Years to below 1 Years 2 Months |
7.15% |
| Yes Bank |
18 Months 8 Days to 18 Months 18 Days |
7.15% |
| Axis Bank |
14 months < 15 months |
7.10% |
| City Union Bank |
1 year |
7.10% |
| DCB Bank |
18 months to less than 24 months |
7.10% |
| Punjab and Sind Bank |
1 Year – 2 Year |
7.10% |
| Yes Bank |
1 Years to <= 10 years |
7.10% |
| Indus Ind Bank |
1 Years 2 Months to below 2 Years |
7.05% |
| State Bank of India |
Government Bank Benchmark |
6.75% – 6.90% |
| ICICI Bank |
Private Bank Benchmark |
6.90% – 7.00% |
Interest Rate for NRE Fixed Deposit of 2 – 5 Years
The highest interest rate is offered by Deutsche Bank (5 Years) at 8.00%
| Bank |
Description |
Interest Rate |
| Deutsche Bank |
5 Years |
8.00% |
| The Ratnakar Bank |
36 months to less than 240 months |
7.50% |
| Deutsche Bank |
4 years to 5 Years |
7.25% |
| DCB Bank |
24 months to 36 months |
7.20% |
| IDFC Bank |
732 – 1095 days |
7.20% |
| Yes Bank |
36 Months 10 Days to 36 Months 20 Days |
7.20% |
| Yes Bank |
1 Years to <= 10 years |
7.10% |
| State Bank of India |
Government Bank Benchmark |
6.50% – 6.75% |
| ICICI Bank |
Private Bank Benchmark |
6.75% |
Interest Rate for NRE Fixed Deposit of 5 – 10 Years
The highest interest rate is offered by The Ratnakar Bank (36 months to less than 240 months) at 7.50%.
| Bank |
Description |
Interest Rate |
| The Ratnakar Bank |
36 months to less than 240 months |
7.50% |
| DCB Bank |
More than 60 months to 120 months |
7.20% |
| Yes Bank |
1 Years to <= 10 years |
7.10% |
| Dena Bank |
5 years to less than 10 years |
7.00% |
| Karur Vysya Bank |
3 years and above |
7.00% |
| Lakshmi Vilas Bank |
5 years to 10 years |
7.00% |
| Punjab and Sind Bank |
>5 Years – 10 Years |
7.00% |
| Tamilnad Mercantile Bank Ltd |
Above 3 Years |
7.00% |
| State Bank of India |
Government Bank Benchmark |
6.50% |
| ICICI Bank |
Private Bank Benchmark |
6.50% |
NRE FD/RD – Rules:
Before you invest in NRE FDs you must be aware of following rules:
- The minimum tenure for NRE FD/RD is 1 year (as per RBI Directives from July 17, 2003).
- The maximum deposit tenure offered by most banks is 10 years.
- The interest earned on NRE FD is tax free in India but it can be taxed in country of your residence. For e.g. USA taxes worldwide income and hence NRIs from USA may have to pay tax in USA.
- NRE Fixed Deposit makes excellent investment opportunity for NRIs from lower or NO income tax countries like UAE, Singapore, etc.
- The principal and interest from NRE FD/RD is freely repatriable.
- Most banks offer higher interest rate on lower deposit amount (less than Rs 50 lakhs/1 crore). It makes sense to split your FD in multiple smaller FDs to get the highest interest rate.
NRE Fixed Deposit – Lower Interest on Higher Amount – Bank of Baroda Example
- There is NO additional interest for Senior Citizens or bank staff for NRE deposits.
- Premature closure of FD/RD is permitted for with some penalty on the interest (usually 1% lower interest than applicable rates). Some banks waive off this penalty. However there would be NO interest in case the NRE deposit remained invested for less than 1 year.
- The interest is compounded quarterly for most banks
- Only funds from overseas income (in foreign currency) can be deposited for NRE FD/RD account. The amount is converted to Indian Rupee on deposit.
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