For Non-Resident Indians, an Indian bank account is not just a parking place for funds — it's a door to remittances, tax-free savings, and investments. The best NRI accounts offer competitive interest rates, low fees, easy repatriation, and easy online access. Some banks are offering better returns than ever in August 2025, while others focus on service and global reach.
SBI: Dependability and fixed deposit might
The State Bank of India remains the most trusted name for NRIs. NRE savings accounts currently offer around 2.5% interest per annum across all account balances, while NRE fixed deposits fetch up to 6.45% for tenures of 2 to less than 3 years. Interest is tax-free and fully repatriable. SBI’s biggest advantage is its massive branch network and proven stability, making it a safe choice for conservative investors.
Yes Bank: Great returns on savings
Yes Bank offers tiered interest slabs for its NRE savings accounts, with interest going from 2.5% p.a. for up to balance of ₹1 lakh and increasing successively to 5% p.a. for amounts over ₹50 lakh, the highest in the sector. NRIs also enjoy a specialized relationship manager, making it appealing to those who prefer individualized attention. While FD rates are competitive, it's the high saving interest that makes Yes Bank the choice for those who prefer liquidity.
Axis, HDFC, and ICICI: Safe bets
Axis Bank NRE savings rates aren't disclosed separately but for its domestic savings account it pays around 2.5% p.a., so it should be in the same bracket. HDFC Bank pays 2.5% p.a. on NRE balances and ICICI Bank 3% for balances up to ₹50 lakh and 3.5% for over ₹50 lakh. Despite rate cuts following the RBI’s June 2025 policy move, all three remain reliable for NRIs, with strong mobile banking platforms, global debit card access, and extensive branch networks.
IDFC FIRST Bank: Best for top-tier rates
For high-balance NRIs, IDFC FIRST Bank offers a highly competitive multi-level interest rate of 3% p.a. on balances up to ₹5 lakh, and 7% p.a. on balances above ₹5 lakh—progressive interest scheme where slabs are on segments of the balance. Free and zero-limit domestic ATM withdrawals, tax-free interest for NRE account, repatriation of full amount, a globally accepted VISA Signature debit card, and an uncompromising digital-first banking platform are some other features offered by the bank.
Choosing the right fit
If highest returns on savings are a requirement, Yes Bank and IDFC FIRST Bank are the winners. SBI is the best for safety and returns on fixed deposits, and Axis, HDFC, and ICICI balance service, ease of access, and returns. For NRIs, multiple accounts in different banks combined can facilitate maximum interest with easy access to funds.
FAQs
Q. Is interest earned on NRE accounts taxable in India?
No, interest on NRE savings and fixed deposit accounts is not taxable in India and fully repatriable. Although it can be taxed back in your home country.
Q. Are NRIs eligible to open joint accounts with resident Indians?
Yes, although only in certain types of accounts such as NRO accounts. NRE accounts can only be opened jointly with another NRI or PIO (Person of Indian Origin).
Q. What are the documents needed to open an NRI account in 2025?
Valid passport, visa or residence permit, proof of overseas address, Indian PAN card, and recent photographs are usually required by most banks. Some of them allow online video KYC for faster processing.
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