Axis Bank NRE FD

Non-Resident External (NRE) deposits are held in rupee denomination by Non-Resident Indians (NRIs) who wish to park their foreign earnings in an Indian bank. Axis Bank NRE fixed deposits (FDs) are high-paying deposit accounts that offer tax-free interest income for foreign nationals.

Axis Bank NRE FD: Key Features

• Tax-free earnings in India
• Full repatriability of interest
• Deposit held in rupee denomination

What is an NRE FD?

NRE fixed deposits are term deposit accounts that are an investment option for NRIs. They give comparatively high returns and give foreign nationals a good platform to save and invest money in the home country.

Why go for NRE FDs?

This is a good idea for NRIs because the interest that is gained is free from tax ambit and investors will be able to completely repatriate their earnings.

Given below are the revised interest rates on Axis Bank NRE FDs with effect from June 1, 2018:

NRI Fixed Deposit Interest Rate: Rs. 5 Crore and Above

Axis Bank NRE FD: Interest Rates

• Those who are investing less than Rs.1 crore, can get paid up to 7.40% p.a., and for investments of Rs.1 crore to Rs.5 crore, the rate paid is up to Rs.7.60%
• An NRI will gain at the rate of 7% p.a, for putting money in an NRE FD of less than Rs.1 crore from 14 months to 10 years
• For 1 year 5 days to less than 1 year 11 days the rate paid on deposits that are from Rs.1 crore to less than  Rs.5 crore will be 7.60% p.a.

Axis Bank NRE Fixed Deposit: Features & Benefits

• Foreign currency deposits: The most convenient aspect of this FD is that deposits can be made in foreign convertible currency from anywhere. Therefore, making it a good option for non-resident Indians.
• Tax exemption: The interest that is earned on such time deposits will not be subject to any type of tax liability in India. This is great advantage for foreign nations who want to get high returns or make investments in their home country.
• Ease of operation: It very easy to apply for an Axis Bank NRE FD. This can be done in a matter of seconds through the online banking facility.
• OD facility: An overdraft or a loan can be easily availed on this type of time deposit, making it a highly liquid investment to make.

Axis Bank NRE FD: Eligibility Criteria

FAQs

1. Is it possible to apply for and open an NRE FD account online?

   Yes.

2. What is the procedure to apply for an NRE FD account online?

   To apply for an NRE FD account online, log on to the Axis Bank website and go to the NRE FD section. Click on the ‘Apply’ option and fill in the details. Post this, all documents can be couriered to the bank.

3. Is it possible to open an NRE FD account jointly with another individual?

   Yes. It is possible to open an NRE FD account with another individual. However, please note that the joint account holder should also be an NRI.

4. Is it possible for an Indian resident to open an NRE FD account?

   No. Indian residents living in India are not eligible to open an NRE FD account. Only those earning in foreign currencies are eligible. All NRIs or people of Indian Origin are eligible for the same.

5. Can an NRE FD account holder take a loan on the deposit?

   All NRE FD holders can take a loan against their deposits. Loans will not be granted if the funds are to be used to carry out real estate business, plantation or farming. Loans will also not be given for lending money.

6. Can an NRE FD be withdrawn before maturity period?

   Yes.

7. Do I have to pay tax if I hold an NRE FD account?

   No. The interest earned on NRE FDs are exempt from tax in India.

8. Can a customer make a transfer of funds from an Non-Resident Ordinary or Foreign Currency Non-Repatriable account to open an NRE FD?

   No. One cannot transfer any funds from existing accounts.

9. Can the NRE FD holder choose a nominee for the deposit?

   Yes. Nominations can be made.

10. Does Axis Bank offer automatic renewals of NRE FDs?

    Yes, it does. Automatic renewals are possible if the customer provides specific auto renewal instructions.