Non-Resident External Accounts are those accounts that are owned by Indian Citizens who are residing in some other country and saving their funds in this account in Indian Rupees.
You can deposit the funds into the account in any foreign currency and any denomination. India has the largest diaspora living outside India in the world. Remittances from them contribute greatly towards the foreign exchange reserves.
There are around 80+ billion dollars annually that India received as remittances and this directly adds to the foreign exchange reserves. This account can be opened by any individual living outside of India.
Fixed Deposit or FD are a saving instrument provided to the account holder using which the investor can earn a higher rate of interest during the lock-in period of the account.
You can withdraw the funds along with the interest rate at the time of maturity. NRE Fixed Deposit is an account opened by NRIs in rupee denomination, for a set period, and for this, they will receive interest.
For depositing the funds into the account, the NRI individual will get attractive interest rates. In this article, we will discuss NRE Fixed Deposit Interest Rates, features of NRE Fixed Deposit accounts, etc.
Table of Contents
NRE Fixed Deposit Interest Rates 2024
The following are the interest rate of various banks provided for NRE Fixed Deposit for the year 2024-
| Bank | 1 year | More than 1 year to 3 years | More than 3 years to 5 years | More than 5 years to 10 years |
| Union Bank of India | 6.30% | 6.30% – 7.30% | 6.70% | 6.70% |
| Punjab National Bank | 6.75% | 6.75% – 7.25% | 6.50% | 6.50% |
| Punjab and Sind Bank | 6.40% | 6.40% – 6.75% | 6.25% | 6.25% |
| IDBI bank | 6.75% | 6.75% – 6.50% | 6.25% | 6.25% |
| Canara Bank | 6.75% | 6.80% – 7.15% | 6.50% | 6.50% |
| Indian Overseas Bank | 6.45% | 6.40% – 7.00% | 6.50% | 6.50% |
| UCO bank | 6.75% | 6.50% – 7.20% | 6.20% | 6.10% |
| Central Bank of India | 6.75% | 6.75% – 6.50% | 6.25% | 6.25% |
| Syndicate Bank | 6.75% | 6.80% – 7.15% | 6.50% | 6.50% |
| Bank of India | 6.00% | 6.00% – 7.05% | 6.50% | 6.00% |
| Bank of Baroda | 6.75% | 6.75% | 6.50% | 6.50% |
| Indian Bank | 6.10% | 6.30% – 6.50% | 6.25% | 6.25% |
| State Bank of India | 6.80% | 7.00% – 7.10% | 6.50% | 6.50% |
| Bank of Maharashtra | 6.00% | 6.00% – 6.30% | 5.75% | 5.75% |
| Karur Vysya Bank | – | 7.00% – 7.50% | 6.25% | 6.25% |
| DCB Bank | 7.25% | 7.25% – 8.00% | 7.60% | 7.60% |
| Yes Bank | 7.25% | 7.25% – 7.50% | 7.00% | 7.00% |
| South Indian Bank | 6.60% | 7.00% – 6.50% | 6.50% – 6.00% | 6.50% – 6.00% |
| City Union Bank | 6.75% | 6.75% – 7.75% | 6.90% | 6.90% |
| Federal Bank | 6.75% | 6.60% – 7.25% | 6.50% | 6.30% – 6.40% |
| IndusInd Bank | 7.00% | 7.00% – 7.50% | 7.50% – 7.25% | 7.00% |
| Axis Bank | 6.75% | 6.75% – 7.26% | 7.00% | 7.00% |
| Tamilnad Merchantile Bank | 7.25% | 6.75% – 7.00% | 6.50% | 6.50% |
| Kotak Mahindra Bank | 7.00% | 7.00% – 7.20% | 6.50% – 6.25% | 6.20% |
| J&K Bank | 7.25% | 7.25% – 6.75% | 6.50% | 6.50% |
| Karnataka Bank | 7.00% | 7.00% – 5.75% | 5.75% | 5.80% |
| Dhanlaxmi Bank | 6.25% | 6.00% – 7.25% | 6.10% – 6.25% | 6.10% |
| Thane Janata Sahakari Bank | 6.75% | 6.75% | 6.25% | 6.25% |
| Shamrao Vithal Co-operative Bank | 7.00% | 7.00% – 7.10% | 7.00% | 7.00% |
| Saraswat Co-operative Bank | 6.60% | 6.80% – 7.00% | 7.00% | 7.00% |
| Abhyudaya Co-operative Bank | 6.60% | 7.00% | 6.25% | 6.25% |
Features of NRE Fixed Deposit Account
The following are the features of the NRE Fixed Deposit Account-
- The money deposited in the NRE Account is converted into the Indian Rupee as per the foreign exchange prices
- You can close the account at your convenience
- The tenure of the NRE FD Account can be flexibly set by the individual from 1 year to 10 years
- For NRE FD Account, you’ll get an auto-renewal facility after the maturity of the NRE Account
- You can get a loan against the NRE Deposits
- Some bank allows up to 90% overdraft facility allowing you more flexibility
- You can also save tax in NRE Deposit accounts under the section 80C of the Income Tax Act
Benefits of NRE Fixed Deposit Account
The following are the benefits of an NRE Fixed Deposit Account-
- You can maintain the NRE FD Account from outside India and deposit your fund online easily
- You can assign the nomination facility to your family members
- You’ll get overdraft and loan facilities if you have the NRE FD Account
Documents Required for NRE Fixed Deposit Account
The following are the documents required for the NRE Fixed Deposit account-
- Passport
- Valid work visa
- Address proof
- Cable TV or internet bill
- Telephone bill
- Bank statement
- Property tax bill
- Mortgage statement
- Lease or rental agreement showing your name and residence address
- Registration for a PO Box or private mailbox
- PAN Card
- Utility bill (electricity, gas, garbage, water, or sewer)
FAQ
No, only one NRE Account is allowed per person, however, you can have more than 1 normal savings NRE savings account.
No, TDS is not deductible on the NRE FD Account.
Yes, you can use any currency to deposit in the NRE FD Account, and you’ll get the latest exchange rates against your deposits.
Yes, a loan of up to 90% of the NRE FD Deposits can be availed for the investment you’ve made.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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