Non-Residential External Fixed Deposit is a specialized account that enables the NRE Indian Living outside India to deposit their funds in an Indian Account.
Fixed Deposit helps the NRI to park his/her earning in an inflation-safe and guaranteed instrument that earns good interest as well.
With such a huge diaspora living outside India, the need for this type of NRE account is imminent. You can choose the NRE Fixed Deposit from any bank account however, it is important to only choose the bank that offers the maximum interest rate.
In this article, we will discuss NRE Fixed Deposit Interest Rates 2024, Eligibility, documents required, etc.
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% |
Eligibility Criteria for NRE Fixed Deposit
The following are the eligibility criteria for NRE Fixed Deposits-
- The individual must be living outside India with Indian Citizenship i.e., Non-Resident Indian or People of Indian Origin (PIO) Card Holder
- The individual must have an NRE Savings Bank account with the bank
Documents Required for NRE Fixed Deposit
The following are the documents required for NRE Fixed Deposit-
- Passport
- Valid work visa
- Address proof
- Aadhaar Card
- PAN Card
- Utility bill (electricity, gas, garbage, water, or sewer)
- 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
Features for NRE Deposits
The following are the features of the NRE Deposits-
- You can deposit the money in NRE Account in the Indian Rupees
- You can close the account at any time at your convenience
- You can get flexible tenure that may range from 1 year to 10 years
- You’ll get an auto-renewal facility where after the maturity of the NRE Account, your FD Account renews itself
- Some banks allow up to 90% overdraft facility
- You can also seek a loan against your NRE Deposits
- Some banks also allow tax-saving NRE Deposit accounts using which you can save taxes under the section 80C of the IT Act
Benefits for NRE Deposits
The following are the benefits of NRE Deposits-
- When an individual is working outside India, it is difficult to maintain funds earned in a normal account therefore, NRE Account was started alongside, you can also avail of NRE Fixed Deposit
- You can assign a nomination facility to the depositor
- You can have overdraft and loan facilities if you use the NRE FD Account
FAQ
Under exchange control law, the interest earned on your NRE Fixed Deposits will be exempt from tax in India for the person residing outside India.
The NRE FD account can be maintained even if you’ve relocated back to India but, the validity of the account will only be till the date of maturity.
Yes, you have the option to avail of a loan against your NRE Deposit amount. The maximum amount you can take is 90% of the deposit amount.
Repatriable refers to the transfer of funds from the FD Indian NRE Account to the account of the country of residence. In the NRE FD Deposits account, you can get both interests earned as well as the principal amount as fully repatriable.
You can fund your NRE Account with any currency which is exchangeable and convertible to Indian Rupee.
You get a decent return which is inflation-protected and you can good interest in it. It is a good investment if you want your fund to be parked safely in an NRE Account.
No, only one NRE FD Account is allowed to have on your name. You will not be allowed to have multiple NRE Accounts.
No, TDS on FD for NRE Account is deduction free.
