These banks offer 6.3% interest on NRO deposits Smaller private banks offer the best interest rates for non-resident deposits
January 24, 2022 / 09:56 AM IST
Non-Resident Indians (NRIs) maintain Non-Resident Ordinary (NRO) bank accounts. It is an account for an NRI to manage the income earned in India, which includes rentals, dividend incomes, salaries, etc. An NRI can deposit money in foreign as well as Indian currency and withdraw in Indian currency from this account.
The surplus funds in the NRO savings account should get invested in NRO fixed deposits. The interest earned on NRO deposits is higher. Here are the foreign banks offering the best interest rates on NRO deposits of 2-3 years' tenure, as per data compiled by BankBazaar.
RBL Bank offers 6.3 percent interest per annum on 2-3 year FDs. Among private banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.13 lakh in two years.
Bandhan Bank and Yes Bank offer 6.25 percent interest per annum on 2-3 year FDs. A sum of Rs 1 lakh invested grows to Rs 1.13 lakh in two years. At Bandhan Bank and Yes Bank the minimum investment required is Rs 1,000 and Rs 10,000 respectively.
IndusInd Bank offers 6 percent interest per annum on 2 to 3 year FDs. Rs 1 lakh invested grows to Rs 1.12 lakh in two years.
DCB Bank offers 5.95 percent interest per annum on 2 to 3 year FDs. Rs 1 lakh invested grows to Rs 1.12 lakh in two years.
IDFC First Bank offers 5.75 percent interest per annum on 2 to 3 year FDs. Rs 1 lakh invested grows to Rs 1.12 lakh in two years.
The smaller private banks are offering higher interest rates to garner newer deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.
The data on FDs is as of 18 January 2022, as given on respective websites. The interest rate on NRO deposits of up to Rs 2 Crore for 2 to 3 years tenure for all listed (BSE) private banks are considered for data compilation. Banks for which verifiable data is not available are not considered. For all FDs, quarterly compounding is assumed.