NRE FD interest rates: Top banks offering highest returns for non-resident Indians

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.

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.

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.

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.

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.

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.