Best NRE FD Rates in 2024

NRE Account FD Interest Rates in 2024

The following table mentions the best NRE FD Rates in India in 2024 for the NRE account deposits (callable) of below Rs. 2 crores:

About NRE FD Rates

NRE FD rates are the interest rates offered on Non-Resident External (NRE) fixed deposit schemes by Non-Resident Indians (NRIs) in Indian banks. Indian Rupee (₹) denomination is eligible for deposits in NRE accounts.  

NRIs often utilize NRE FDs as a secure investment option for their foreign earnings. The NRE FD accounts allow you to easily repatriate both the principal and interest earned on your deposits.

Check out: Ways to Double Money

Features of NRE FD Rates in 2024

The key features of NRE fixed deposit rates are as follows:

• Competitive NRE Fixed Deposit Rates: The best interest rate on NRE FDs are competitive that encourages you to invest your foreign income in India 

• Factors for NRE FD Rates: These rates are generally influenced by the following factors:

• Prevailing market conditions

• Reserve Bank of India's (RBI) monetary policies

• The bank's individual offerings

• Fixed Tenure Options: NRE FDs usually come with fixed tenures, ranging from 12 months to 10 years

• Flexibility: These FDs provide you with the flexibility to choose an investment horizon that aligns with your financial goals

• Tax Exemption: The interest earned on NRE FDs is exempted from income tax in India under Section 10(4) of the Income Tax Act, 1961. This tax benefit enhances the overall returns for NRIs.

• Insurance on NRE FDs: The NRE deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs.5 lakh.

• Repatriation: Both the principal amount and the interest earned can be repatriated freely in foreign currency, making it convenient for NRIs to manage their funds across borders.

• Nomination Facility: NRE FD accounts allow you to nominate a beneficiary who would receive the funds in case of your unfortunate demise.

• Joint Accounts: An NRI can open joint NRE FD accounts with other NRIs, allowing you to pool your resources and invest together.

• Auto-Renewal: Some banks offer the option of automatic renewal at maturity, ensuring that your NRE FD continues to earn interest without any manual intervention.

• Online Access: Many banks offer online access to NRE FD accounts, making it easier for you to track your investments, view statements, and manage your accounts remotely.

• Loan Against FD: You can avail a loan of up to 90% of the NRE deposits. This can be beneficial for NRIs who need liquidity but do not want to break their deposits.

• Tax-Saver FDs: Tax-saver FDs provide tax deductions on the deposits under Section 80C of the IT Act, 1961.

• Security and Regulation: NRE deposits are regulated by the Reserve Bank of India (RBI), providing a level of oversight and security. This can offer NRIs peace of mind regarding the safety of their funds.

Check out: Which Bank has the Highest FD Interest Rate for NRI?

Eligibility Criteria for NRE FD Rates

The eligibility criteria for availing NRE FD (Non-Resident External Fixed Deposit) rates in India is mentioned in the list below:

• Eligible Investors: Non-Resident Indian (NRI) and Person of Indian Origin (PIO)

• Account Type: NRE (Non-Resident External) account and it must be with an Indian bank

• FD Deposit Limit: The deposit amount can range between Rs. 2,000 – No Limit (limit depends on the bank)

• NRE Account Tenure: 1 – 10 years

Documents Required to Apply for NRE Account

You must have the following documents to open an NRE account in an Indian bank as NRI/ PIO:

Steps to Apply for NRE Account Interest Rates

Follow the steps mentioned below to open an NRE Account with the banks in India:

Step 1: Check the interest rates offered by different banks.

Step 2: Choose a bank with a good interest rate. Also check the other important factors like, bank's reputation, customer service, and online banking facilities.

Step 3: You can apply for an NRE account online or in person at a bank branch.

Step 4: Duly fill the NRE FD account application form. If you apply online, you will need to upload the required documents. If you apply in person, you will need to submit the required documents to the bank representative.

Step 5: Once your application is approved, you will need to make an initial deposit.

Step 6: Once you have made the initial deposit, you will start earning interest on your NRE account.

Read Here: Pros and Cons of NPS

Benefits of NRE FD Rates

Some of the benefits of NRE FD rates for NRIs:

• Higher Interest Rates: NRE FDs often offer higher interest rates compared to regular savings accounts or FDs in foreign countries. This allows you to earn a potentially higher return on your savings.

• Tax-Free Interest: Interest earned on NRE FDs is tax-free in India. This means that you do not have to pay any income tax on the interest you earn from these deposits.

• Currency Risk Mitigation: NRE FDs are maintained in Indian rupees, which can act as a hedge against currency fluctuations for NRIs living in countries with volatile exchange rates.

• Repatriation of Funds: NRE FDs are fully repatriable, meaning you can easily transfer both the principal and interest back to your foreign bank accounts without any restrictions.

• Stability and Security: NRE FDs are regulated by the Reserve Bank of India (RBI), offering a level of oversight and security. 

• Choice of Tenure: NRE FDs come with various tenure options, ranging from short-term to long-term. You can choose a tenure that aligns with your financial goals and liquidity needs.

• Multiple Deposit Options: You can open both regular fixed deposits and recurring deposits under the NRE FD scheme. This allows you to choose the deposit type that suits your savings pattern.

• Interest Compounding: Some NRE FDs offer the option of compounding interest, where the interest earned is added back to the principal at specified intervals. This can lead to higher effective returns over time.

• Joint Account Holding: An NRI can hold joint NRE FD accounts with other NRIs, allowing your family members to collectively save and invest.

• Loan Facilities: Certain banks might offer loan facilities against NRE FDs. This can be useful for you when you require liquidity but do not wish to prematurely break your fixed deposits.

• Easy Management: NRE FDs can often be managed through online banking platforms, allowing you to monitor and manage your deposits conveniently from abroad.

NRE FD Rates vs. NRO FD Rates

The key differences between NRE FD interest rates and NRO FD interest rates are mentioned in the table below:

FD interest have fallen consistently over the last 5 years.

Invest in Plans that offer Guaranteed Returns for over 25 Years

Know More

Read Here: Retirement Plans in India

Summing It Up

NRE FD rates in India offer favourable interest rates for Non-Resident Indians (NRIs) due to their tax-free nature and the ability to repatriate both the principal and interest amounts. These accounts serve as a convenient option for NRIs to park their foreign income while earning competitive returns. However, you should stay updated with the latest rates and regulations from your chosen financial institutions.