•  Loading your search... Loading your search...
  • NRE Fixed Deposit is Rated as "Blown Away!" by 1 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Fixed Deposit BYTES FROM OUR KITCHEN

    NRE Fixed Deposit

    A common question that is constantly heard on the lips of every NRI is how can they invest in Fixed Deposits (FDs) in the India? It is not a surprise to hear that question as FDs have been for long the favourite choice of investment in the country. With many people from the country now working and residing outside the country, Non Resident External (NRE) deposits have become quite popular. But what are NRE fixed deposits? NRE fixed deposits are similar to regular term deposits with NRIs using NRE accounts to open fixed deposits. The accounts can be opened by all NRIs and are virtually tax free.

    The Interest rates offered on NRE fixed deposit by banks for deposits less than Rs.1 crore are as follows: 

    Bank Interest rate range per annum for amount less than Rs.1 crore
    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 6.75% 6.50% 6.50% 6.50%
    Punjab National Bank 6.60% 6.75% 6.25% 6.25%
    Oriental Bank of Commerce 6.60% 6.50% - 6.60% 6.40% 6.40%
    Punjab and Sind Bank 6.60% 6.60% 6.55% NA
    IDBI bank 6.75% 6.25% - 6.50% 6 – 6.25% 6%
    Andhra Bank 4% - 6.50% 6.25% - 6.50% 6.25% 6.25%
    Canara Bank 6.50% 6.20% - 6.45% 6.20% 6%
    Indian Overseas Bank 4% - 6.75% 6.25% - 6.75% 6% 6%
    UCO bank 6.65% 6.50% - 6.65% 6.50% 6.35%
    Vijaya Bank 4% - 6.50% 6.50% - 6.60% 6.25% 6.25%
    Central Bank of India 5.25% 5% - 5.25% 5% 5%
    Allahabad Bank 6.60% 6.50% - 6.60% 6.50% 6.50%
    Syndicate Bank 6.75% 6.60% - 6.75% 6.50% - 6.60% 6.50%
    Bank of India 6.60% 6.30% - 6.60% 6.25% - 6.30% 6.25%
    Bank of Baroda 4.25% - 6.45% 6.50% - 6.55% 6.50% 6.25%
    Indian Bank 6.50% 6% - 6.25% 6% 6%
    Dena Bank 6.50% 6.25% - 6.50% 6.25% - 6.30% 6.30%
    State Bank of India 6.40% 6.40% - 6.50% 6.50% 6.50%
    Bank of Maharashtra 6.25% 6.25% 6% 6%
    Corporation Bank 6.50% 6.50% - 6.70% 6.50% 6.50%
    Lakshmi Vilas Bank 7.20% 7.20% 7.15% 7.15%
    Karur Vysya Bank 6.75% 7% 7% 7%
    DCB Bank 7% 7.25% 7.25% 7.20%
    Yes Bank 7% 7% 7% 7%
    South Indian Bank 6.75% 6.50% - 7.10% 6.50% 6.50%
    City Union Bank 7.10% 7.10% 7.10% 6.70%
    Federal Bank 6.70% 6.50% - 7.10% 6.50% 6.50%
    IndusInd Bank 7% 6.50% - 7% 6.50% 6.50%
    Axis Bank 6.75% 6.75% - 6.90% 6.90% 6.90%
    Tamilnad Merchantile Bank 6.90% 6.90% - 7% 6.90% 6.90%
    Kotak Bank 6.80% 6.50% - 6.80% 6.25% - 6.50% 6.25%
    J&K Bank 7% 6.25% - 7% 6.25% 6.25%
    Catholic Syrian Bank 6.50% 6.50% - 6.75% 6.50% 6.50%
    ICICI Bank 6.60% 6.50% - 6.75% 6.50% 6.50%
    Karnataka Bank 7.10% 6.50% - 7.25% 6.50% 6.50%
    Dhanalakshmi Bank 6.60% 6.50% - 6.60% 6.50% - 6.60% 6.50%
    Punjab & Maharashtra Co-operative Bank 7.50% 7.50% - 7.75% 7.25% 7%
    Bharat Co-operative Bank 7.35% - 7.60% 7.25% - 7.60% 7.25% - 7.50% 7.25% - 7.50%
    Bassein Merchantile Co-operative Bank 7.25% - 7.50% 7.25% - 7.50% 7% - 7.25% NA
    Thane Janata Sahakari Bank 6.25% 7.10% 7% 7%
    Shamrao Vithal Co-operative Bank 6.75% 6.75% - 7.15% 6.75% NA
    Zoroastrain Co-operative Bank 7% 7% 7% NA
    Saraswat Co-operative Bank 6.25% - 6.35% 6.75% 6.40% 6.40%
    Abhyudaya Co-operative Bank 6.75% 6.75% - 7% 7% 7%
    Bombay Merchantile Co-operative Bank 6.25% 6.25% 6% NA

    Eligibility criteria for NRE fixed deposits

    To open a NRE fixed deposits, one needs to fulfil the following criteria:

    • The individual needs to be a Non Resident Indian (NRE) or a Person of Indian Origin (POI)
    • They need to have NRE accounts

    Documents required to open NRE deposits

    To open an NRE deposit, an individual needs to submit documents like:

    • Passport
    • Valid work visa
    • Address proof

    Features of NRE deposits

    NRE deposits are laced with a variety of features. Some of them are mentioned below:

    • Money can be deposited in Indian rupees
    • The account can be closed at any time after they are opened
    • Offers flexible tenures that may range from 1 year to 10 years
    • Auto-renewal facilities are offered by banks where the FD renews itself once it matures.
    • Some banks may even allow loans against NRE deposits
    • Some banks allow up to 90% overdrafts on NRE deposits
    • Some banks also allow NRE deposits to be held jointly
    • Banks may even offer tax-saver fixed deposits to NRIs allowing them to claim tax benefits under Section 80C of the IT Act
    • Banks have stipulations about what the minimum and maximum amounts that one can deposit

    Interest rates offered on NRE deposits

    The interest rates offered on a Non Resident External deposit varies with the duration for which the deposit is opened. The rates offered by various banks can go up to 8% per annum or more.

    Benefits of NRE deposits

    When an individual opens an NRE fixed deposit, he/she is liable to avail certain benefits. Some of them are as follows:

    • Allows NRIs to open fixed deposits in India and earn  impressive interest.
    • They offer the depositors with ready funds when faced with an unforeseen circumstance as they can be closed prematurely.
    • With banks providing overdraft and loan facilities NRE deposits ensures that the depositors can have money as and when they need it.
    • The deposits offer nomination facility to the depositors

    NRE deposits have certain benefits but they have certain drawbacks as well. One of the biggest drawback a senior citizen might face with NRE deposits is that the special interest rate for senior citizens on all other deposits is not applicable on NRE ones.

    Nominee Vs Legal Heirs for Fixed Deposits Reviews

    • IndusInd Bank Fixed Deposit
      "Fixed depost"
      0.5 5.0/5 "Blown Away!"
      With INDUDIND, I am holding a NRE so based on which they offered a NRE rate. This was opened and closed. This request was placed online no challenges nor any issues. I did not get any tax benefit for this FD. It was opened on the basis of NRE....
      Was this review helpful? 0
      , thane
      Reviewed on Sep 23, 2017
    Common Loader Icon
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.