NRE FD interest rates: Top banks offering highest returns for non-resident Indians
NRE fixed deposits offer tax-free returns and full repatriation, with top banks like Punjab National Bank (6.8%) and IndusInd Bank (6.75%) offering competitive interest rates for NRIs.
Non-resident external (NRE) fixed deposits are a popular investment option for non-resident Indians (NRIs) looking to park their foreign earnings in India. These deposits offer tax-free returns, and full repatriation of both principal and interest amounts. NRE FDs provide a secure way for NRIs to manage their finances in India. With competitive interest rates and tax benefits, NRE FDs have become a preferred choice for NRIs seeking stable and lucrative investment opportunities in India.
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Here are 10 banks that offer the highest interest rates on NRE FDs. The best rates offered by these banks on one-year FDs (of up to Rs 1 crore) for NRIs have been considered. Let’s examine how an investment of Rs 1 lakh grows over this period. BankBazaar has compiled the data, as of August 5.
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Punjab National Bank offers an interest rate of 6.8 percent on NRE FDs with a tenor of one year. Among public sector banks, it offers the best rate. In one year, a Rs 1 lakh FD would grow to Rs 1,06,800.
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State Bank of India, Canara Bank, Union Bank of India and Bank of Baroda 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.
IndusInd Bank offers an interest rate of 6.75 percent on NRE FDs with a tenor of one year. Among private banks, it offers the best rate. In one year, a Rs 1 lakh FD would grow to Rs 1,06,750.
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HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra 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.
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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.
