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These five banks offer up to 7% interest on NRO deposits

Small finance banks offer the best interest rates for non-resident deposits

October 27, 2021 / 10:45 AM IST
Non-Resident Indians (NRIs) maintain Non-Resident Ordinary (NRO) bank accounts. It is an account of an NRI to manage the income earned in India, which includes rental, dividend income, salary, etc.  An NRI can deposit money in foreign as well as Indian currency and withdraw in Indian currency from this account.
Non-Resident Indians (NRIs) maintain Non-Resident Ordinary (NRO) bank accounts. It is an account of an NRI to manage the income earned in India, which includes rental, dividend income, salary, 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. Small finance banks and smaller private banks offer interest rates of up to 7 percent on NRO deposits of 2-3 years' tenure, as per data compiled by  BankBazaar . Here are the banks offering the best interest rates on 2-3-year FDs.
The surplus funds in the NRO savings account should get invested in NRO fixed deposits. The interest earned on NRO deposits is higher. Small finance banks and smaller private banks offer interest rates of up to 7 percent on NRO deposits of 2-3 years' tenure, as per data compiled by BankBazaar. Here are the banks offering the best interest rates on 2-3-year FDs.
 Suryoday Small Finance Bank  offers 7 percent interest per annum on 2 to 3 year FDs. Among small finance banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.15 lakh in two years.
Suryoday Small Finance Bank offers 7 percent interest per annum on 2 to 3 year FDs. Among small finance banks, this bank offers the best interest rates. A sum of Rs 1 lakh invested grows to Rs 1.15 lakh in two years.
 Ujjivan Small Finance Bank  offers 6.5 percent interest per annum on 2 to 3 year FDs. Now, Rs 1 lakh invested grows to Rs 1.14 lakh in two years. The minimum investment required is Rs 5,000.
Ujjivan Small Finance Bank offers 6.5 percent interest per annum on 2 to 3 year FDs. Now, Rs 1 lakh invested grows to Rs 1.14 lakh in two years. The minimum investment required is Rs 5,000.
 RBL Bank  offers 6.30 percent interest per annum on 2 to 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.
RBL Bank offers 6.30 percent interest per annum on 2 to 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.
 Yes Bank  offers 6.25 percent interest per annum on 2 to 3 year FDs. A sum of Rs 1 lakh invested grows to Rs 1.13 lakh in two years. The minimum investment required is Rs 10,000.
Yes Bank offers 6.25 percent interest per annum on 2 to 3 year FDs. A sum of Rs 1 lakh invested grows to Rs 1.13 lakh in two years. The minimum investment required is Rs 10,000.
 IndusInd Bank ,  AU Small Finance Bank  and  Equitas Small Finance 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.
IndusInd Bank, AU Small Finance Bank and Equitas Small Finance 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.
The smaller private banks and small finance 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 smaller private banks and small finance 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 20 October 2021, as given on respective websites. Interest rate on NRO deposits of up to Rs 2 Crore for 2 to 3 years tenure for all listed (BSE) public & private banks, and foreign Banks considered for data compilation. Banks for which verifiable data is not available are not considered. For all FDs, quarterly compounding is assumed.
The data on FDs is as of 20 October 2021, as given on respective websites. Interest rate on NRO deposits of up to Rs 2 Crore for 2 to 3 years tenure for all listed (BSE) public & private banks, and foreign Banks considered for data compilation. Banks for which verifiable data is not available are not considered. For all FDs, quarterly compounding is assumed.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
first published: Oct 27, 2021 10:45 am

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