Maximize your NRE fixed deposit returns: Top banks with highest interest rates

NRE fixed deposits are a favoured investment option for NRIs, offering tax-free returns and full repatriation benefits, enabling secure and stable management of finances in India.

Here are 10 banks that offer the highest interest rates on NRE fixed deposits. The best rates offered by these banks on one-year FDs (of up to Rs 1 crore) have been considered for this list. Let’s see how an investment of Rs 1 lakh would grow over the period. BankBazaar compiled the data as of September 16.

IndusInd Bank offers a 7 percent interest rate on NRE fixed deposits with a one-year tenure, making it a competitive option. With this rate, a Rs 1 lakh FD would grow to Rs 1,07,000 in one year.

Kotak Mahindra Bank, HDFC Bank, ICICI Bank and Axis Bank offer an interest rate of 6.6 percent, which will see Rs 1 lakh investment grow to Rs 1,06,600 on the date of maturity.

State Bank of India, Bank of Baroda and Punjab National Bank offer an interest rate of 6.6 percent for a one-year NRE FD, which will see Rs 1 lakh investment grow to Rs 1,06,600 on the date of maturity.

Canara Bank and Union Bank of India offer a 6.5% rate on one-year NRE FD. A Rs 1 lakh investment would yield Rs 1,06,500 after a year.

The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the Reserve Bank of India, guarantees the safety of fixed deposits of up to Rs 5 lakh.