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NRI fixed deposits resemble regular term deposits but are specifically opened through NRI bank accounts. Banks extend attractive interest rates to NRIs who deposit their earnings in these accounts. Indian banks generally offer three types of NRI accounts: NRE (Non-Resident External), NRO (Non-Resident Ordinary), and FCNR (Foreign Currency Non-Resident). If you want to know more about NRI accounts, read our full guide on NRI accounts here.
An NRI Fixed Deposit (FD) is a savings option offered by Indian banks specifically for Non-Resident Indians (NRIs). It allows NRIs to invest their foreign earnings in Indian Rupees and earn attractive interest rates.
Here is the list of Indian banks that offer the highest interest rate for NRI fixed deposits:
| Banks | 1 year | Above 1 year to 3 years | 3 years to 5 years | 5 years to 10 years |
|---|---|---|---|---|
| Axis Bank | 6.70% | 6.70% – 7.10% | 7.10% | 7.00% |
| Bank of Baroda | 6.85% | 6.85% | 6.50% | 6.50% |
| Canara Bank | 6.85% | 6.85% | 6.80% | 6.70% |
| DBS Bank | 6.25% | 5.25% – 6.50% | 5.00% | 5.00% |
| DCB | 7.15% | 7.15% – 8.00% | 7.40% – 7.90% | 7.25% |
| Deutsche Bank | 7.00% | 8.00% | 7.00% | 7.50% |
| Federal Bank | 6.80% | 7.05% – 7.50% | 7.00% | 6.60% |
| HDFC Bank | 6.60% | 6.60% – 7.15% | 7.00% – 7.20% | 7.00% |
| ICICI NRE FD Rates | 6.70% | 6.70% – 7.10% | 7.00% | 6.90% |
| IDBI Bank | 6.80% | 6.80% – 7.00% | 6.50% | 6.25% |
| IDFC First Bank | 6.50% | 7.25% – 7.75% | 7.00% | 7.00% |
| Indian Bank | 6.10% | 6.30% – 6.50% | 6.40% | 6.30% |
| Indian Overseas Bank | 6.50% | 6.50% – 7.25% | 6.50% | 6.50% |
| IndusInd | 7.50% | 7.25% – 7.50% | 7.25% | 7.00% |
| Kotak Mahindra Bank | 7.10% | 7.10% – 7.25% | 7.00% | 6.20% |
| Punjab National Bank | 6.75% | 6.80% – 7.25% | 6.50% | 6.50% |
| RBL | 7.50% | 7.50% – 8.00% | 7.10% | 7.00% |
| SBI | 6.80% | 7.00%- 7.10% | 6.75% | 6.50% |
| SBM | 7.05% | 6.5% – 8.10% | 7.40% – 8.25% | 7.4% |
| Union Bank of India | 6.75% | 6.50% – 7.25% | 6.50% | 6.50% |
| YES Bank | 7.25% | 7.25% – 7.50% | 7.25% | 7.00% |
NRI Fixed Deposits come with several advantages that make them an attractive investment option for Non-Resident Indians (NRIs). Here's a breakdown of the key benefits:
IDFC FIRST Bank provides NRE FD rates ranging from 6.75% to 7.25% for tenures spanning from 1 year to 10 years, effective from January 8, 2024. The highest interest rate of 7.25% is available for a 400-day tenure.
As an NRI, it's essential to select the most suitable option based on your investment profile. While an NRE Fixed Deposit enjoys tax exemption, an NRO Fixed Deposit is subject to NRI taxation. Interest earned on an NRE Fixed Deposit is tax-exempt in India, whereas TDS is applicable on interest earned on an NRO Fixed Deposit.
NRIs can open NRE, NRO, and FCNR fixed deposits. NRE and FCNR fixed deposits offer tax-free interest income, while interest earned on NRO fixed deposits is taxable in India.
