The State Bank of India (SBI) offers a wide range of customised fixed deposit products for Non-Resident Indians (NRIs) to help them earn good returns while enjoying other benefits such as tax exemptions on certain FDs. The various types of schemes offered by SBI for NRIs include Non-Resident External (NRE) account, Non-Resident Ordinary (NRO) account, Foreign Currency Non-Repatriable (FCNR) account, and Resident Foreign Currency (RFC) account. NRIs can open NRE fixed deposit accounts, NRO fixed deposit accounts, RFC, and FCNR term deposits. SBI fixed deposit interest rates were revised on February 28, 2018. Interest rates changed for all deposit tenures and types, including for SBI NRI fixed deposits.
Among the fixed deposits offered by SBI, the ones for NRIs include:
NRE fixed deposits are offered for a certain fixed period of time at a specific rate of interest. SBI offers two types of fixed deposits for NRIs:
Fixed deposits can be opened easily and interest on these schemes will be paid on a quarterly basis. Any interest earned from these types of deposits will not be taxed in India. The other types of NRE accounts include savings account, current account and recurring deposit account.
Interest rates for SBI NRE FDs
| Time period | Rate for less than Rs.1 crore (per annum) | Rate for Rs.1 crore to Rs.10 crore (per annum) |
|---|---|---|
| 5 years to 10 years | 6.50% | 6.25% |
| 3 years to below 5 years | 6.50% | 6.65% |
| 2 years to below 3 years | 6.50% | 6.75% |
| 456 days to less than 2 years | 6.40% | 6.75% |
| 1 year to 455 days | 6.40% | 6.75% |
| 1 year | 6.40% | 6.75% |
*Interest rates are subject to change at regular intervals at the discretion of the bank.
NRO Fixed Deposits can be opened in Rupee denomination with a minimum deposit amount of Rs.1,000. Interest on these accounts is credited into the NRO savings account on a quarterly basis. However, one must note that the interest earned on these investments will be taxed. SBI offers NRO term deposits and NRO special term deposits.
Interest rates for SBI NRO FDs
| Time period | Rate for less than Rs.1 crore (per annum) | Rate for Rs.1 crore to Rs.10 crore (per annum) |
|---|---|---|
| 5 years to 10 years | 6.50% | 6.25% |
| 3 years to 5 years | 6.50% | 6.65% |
| 2 years to below 3 years | 6.50% | 6.75% |
| 456 days to below 2 years | 6.40% | 6.75% |
| More than 1 year to 455 days | 6.40% | 6.75% |
| 365 days | 6.40% | 6.75% |
| 211 days to below 1 year | 6.40% | 6.75% |
| 180 days to 210 days | 6.35% | 6.70% |
| 46 days to 179 days | 6.25% | 6.70% |
| 7 days to 45 days | 5.75% | 5.75% |
*Interest rates are subject to change at regular intervals based on the discretion of the bank.
An FCNR account is just like any other fixed deposit account, where a certain sum of money is invested for a specific period of time. The only difference here is that FCNR fixed deposits are maintained in foreign currencies. SBI offers FCNRs in all major currencies such as AUD, JPY, CAD, EURO, GBP and USD. SBI offers FCNR term deposits and FCNR special term deposits. The interest is computed once in 180 days.
Interest rates for SBI FCNRs
| Tenure /currency | USD | GBP | Euro | CAD | AUD | JPY |
|---|---|---|---|---|---|---|
| 5 years | 3.29% | 1.90% | 0.15% | 2.45% | 2.62% | 0.05% |
| 4 years to below 5 years | 3.25% | 1.82% | 0.10% | 2.39% | 2.51% | 0.05% |
| 3 years to below 4 years | 3.16% | 1.71% | 0.01% | 2.31% | 2.22% | 0.05% |
| 2 years to below 3 years | 3.04% | 1.56% | 0.01% | 2.18% | 2.06% | 0.05% |
| More than 1 year to below 2 years | 3.09% | 1.34% | 0.01% | 2.04% | 1.91% | 0.02% |
| 1 year | 3.09% | 1.34% | 0.01% | 2.04% | 1.91% | 0.02% |
RFC fixed deposits can be opened in major currencies such as USD, EURO, or GBP. The interest earned on these deposits will be paid in foreign currency. However, tax will be charged on interest earned. Deposits can be held for a time period ranging from 1 year to 3 years
Interest rates for SBI RFCs
| Currency | 1 year but less than 2 years (in %) | 2 year but less than 3 years (in %) | 3 years (in %) |
|---|---|---|---|
| USD | 3.09 | 3.04 | 3.16 |
| GBP | 1.34 | 1.56 | 1.71 |
| EURO | 0.01 | 0.01 | 0.01 |
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Instant loans will be granted against all Fixed Deposits (FDs) held with the State Bank of India (SBI) under the NRI banking services wing.
There is no waiting period or need to provide documentation to apply for this type of loan. The interest rate offered is reasonable and is comparatively much lesser than commercial loan interest rates. Loans can be taken against all NRE and NRO deposits. NRI’s can apply for loans through SBI’s net banking facility instantly without any hassle.
4 January 2018
The State Bank of India (SBI) had made changes to interest rates on Fixed Deposits (FDs) for Non-Resident Indians (NRIs).
At present, the interest rate offered for NRIs ranges from 4.25% to 6.25%. For NRE deposits held for 2 years or less, the rate of interest offered is 6.25%. For a tenure range of 2 years to 10 years, the rate of interest is 6%.
When it comes to NRO deposits, the interest rate offered ranges from 5.25% to 6.25%. An interest rate of 6.25% is offered for a tenure of 46 days and 2 years. For all deposits held above 2 years, the rate of return is 6%. These rates are applicable for all deposits less than Rs.1 crore.
The interest rates will vary for deposits held for more than Rs.1 crore.
8 November 2017
SBI recently updated its rates for FCNR deposits. The new rates have been effective since June 1st, 2016. Given below is a list of updated rates for FCNR deposits.
The previous rate for FCNR deposits of tenure 1 year to 2 years was 1.55% whereas now, it is 1.65% in GBP.
The previous rate for FCNR deposits for a tenure between 2 years to 3 years was 1.92% whereas now, it is 2.08% in GBP.
The previous rate for FCNR deposits for a tenure between 3 years to 4 years was 2.04% whereas now, it is 2.20% in GBP.
The previous rate for FCNR deposits for a tenure between 4 years to 5 years was 2.15% whereas now, it is 2.30% in GBP.
The previous rate for FCNR deposits for a tenure of 5 years was 2.26% whereas now, it is 2.38% in GBP.
1 July 2016
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