NRE FD rates compared: DCB Bank, YES Bank, RBL and others offer up to 7.50% interest on NRE term deposits
Are you a Non-Resident Indian (NRI) aiming to park savings in India? Then you can definitely consider a unique opportunity to invest your funds in the Non-Resident External (NRE) Fixed Deposits, with several prominent banking institutions currently offering rates of up to 7.50% on deposits of up to ₹1 crore.
In the comparison list below, DCB Bank offers one of the most lucrative interest rates, at 7.50%, for deposits with tenures of two to less than three years and for tenures beyond five years.
What is an NRE fixed deposit?
An NRE fixed deposit permits NRIs to invest funds in India by remitting funds in any freely convertible foreign currency. One of the most meaningful advantages of such a fixed deposit is that the interest earned is tax-free in India. Both the interest and the principal are fully repatriable, enabling NRIs to transfer funds back to their country of residence without restrictions or regulations.
In case you meet the eligibility conditions, you can also open and manage NRE FDs with banks in India. Not only that, NRIs can avail loans against NRE fixed deposits for a variety of purposes. These loans can be procured by eligible applicants in India or abroad (through overseas branches of Indian banks), in accordance with banking norms.
Source: BankBazaar; Data taken from the respective banks’ websites as on 28 July. Only the main entity of merged banks has been considered. Banks with fixed deposit rates unavailable for five years or more have been excluded. The comparison is based on the highest fixed deposit rates for tenures of five years or more.
What NRIs should keep in mind
Before making any investment decisions, it is wise to consult a certified financial advisor to ensure your decisions are backed by professional advice. Secondly, the offered interest rates are important; still, NRIs should also diligently check the deposit tenure, premature withdrawal rules, tax implications, loan-against-deposit facilities and the bank’s overall service history before investing.
Since rates vary across banks and tenures, comparing options can help investors maximize returns while enjoying the tax and repatriation benefits of NRE fixed deposits.
