Is NRE FD tax-free in Canara Bank?

The NRE FD interest is tax-free in Canara Bank.

What is the NRE FD interest rate in Canara?

The highest NRE FD interest rate offered by Canara Bank is 7.40%.

Which is better, NRE FD or NRO FD in Canara Bank?

Both NRE FD and NRO FD have different features, but the interest earned on NRE FD is tax-free, while this is not the case with NRO FD.

Is NRE FD a good investment option in Canara Bank?

If you want to invest your money in an asset with high guaranteed returns, NRE FD investment is a good investment option for you.

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Canara Bank NRE FD Rates

Canara NRE FD rates range from 5% to 7.40%, providing rewarding investment options to grow your money smartly. FD tenure ranges from 7 days to 10 years. The interest earned on the principal is exempt from tax deductions, ensuring that you achieve your financial goals. In this article, you will learn the details of Canara Bank NRE FD Rates in 2025 in India.

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What is a Canara Bank NRE Fixed Deposit?

The Canara Bank NRE FD is a financial asset through which Non-Resident Indians keep their smartly earned money with the bank for a predetermined time to increase its value by the end of the term. It is a low-risk investment. The returns are disclosed at the beginning of the tenure, making it a reliable source of income generation. Canara Bank NRE FD funds are fully repatriable, ensuring a smooth transfer of your money from India back to your home country.

Rate of Interest on Canara Bank Non-Resident External (NRE) FD Account Deposits

The interest rates received on Canara Bank NRE fixed deposit accounts amounting to below ₹3 crore to 10 crore are as follows:

S.No.		With Partial Withdrawal				With Partial Withdrawal
	Tenor	Less than Rs. 3 Crore				Rs. 3 Crore & above to less than Rs. 10 Crore				Above Rs.1.00 Crore to Less than Rs. 3.00 Crore	Rs. 3 Crore & above to less than Rs. 10 Crore
		Rate of Interest	Annualised	Rate of Interest	Annualised	Rate of Interest	Annualised	Rate of Interest	Annualised
		(% p.a.)	Interest Yield (% p.a.)	(% p.a.)	Interest Yield (% p.a.)	(% p.a.)	Interest Yield (% p.a.)	(% p.a.)	Interest Yield (% p.a.)
1.	1 year only	6.85	7.03	7.65	7.87	7.00	7.19	7.68	7.90
2.	444 days	7.25	7.45	NA	NA	7.40	7.61	NA	NA
3.	Above 1 year to less than 2 years	6.85	7.03	6.80	6.98	7.00	7.19	6.83	7.01
4.	2 years & above to less than 3 years	7.15	7.50	6.25	6.40	7.40	7.61	6.28	6.43
5.	3 years & above to less than 5 years	7.20	7.61	5.00	5.09	NA @	NA @	5.03	5.13
6.	5 years & above to 10 years	6.70	6.87	5.00	5.09	NA @	NA @	5.03	5.13

Note: *Interest rates with premature withdrawal are effective from April 10, 2025 and interest rates without premature withdrawals are effective from April 19, 2025. Canara Bank NRE FD rates are subject to change without prior notice. The minimum tenor is 1 year. Kamadhenu Deposit interest compounds quarterly.

RFC Deposits

The interest rates on RFC (Resident Foreign Currency) deposits are:

Tenor	Currency of Deposits
	USD<100000	USD>=100000	GBP	EUR	CAD	AUD
Savings Bank	0.10	0.10	0.10	NIL	NIL	NIL
1 month & above but less than 3 months	0.10	0.10	NA	NA	0.10	0.10
3 months & above but less than 6 months	0.10	0.10	NA	NA	0.10	0.10
6 months & above but less than 1 year	0.10	0.10	NA	NA	0.10	0.10
1 year & above but less than 2 years	5.45	5.55	4.80	3.00	4.00	4.00
2 years & above but less than 3 years	4.00	4.00	3.00	2.00	3.50	3.50
3 years only	3.70	3.70	2.50	1.50	3.00	3.00

Note: *Rates below apply to RFC deposits under USD 1 Million. Contact the branch for higher amounts. RFC interest compounded half-yearly (applicable products).

Why Choose a Canara Bank NRE FD Account?

The Canara Bank NRE FD account offers its customers various benefits, including:

The fixed deposit in Canara Bank NRE FD offers a higher interest rate than that of a savings account.
The account offers tax benefits on interest earned over time.
Canara Bank offers the provision of an international debit card to withdraw funds easily.
The account comes with a smooth repatriation and remittance facility.
Upon returning to India, the facility of conversion into an RFC Account is provided.

What Are the Eligibility Criteria for a Canara Bank NRE FD Account?

In order to invest in the Canara Bank NRE FD account, the following conditions must be fulfilled:

The customer must fall under one of the following categories: NRI, PIO, OCI, Indian seafarer, Indian government employees with a diplomat’s passport, or student studying abroad.
Must have valid ID proof, including an Indian passport and a PIO card.
Required to show authentic overseas address proof.
Must present valid proof, including a student visa or employment visa.

How to Open a Canara Bank NRE FD Account?

For Existing Canara Bank Customers

Existing Canara Bank customers can typically open an NRE FD through their internet banking portal or mobile app. Look for the "Deposits" or "Open New Account" section and select the NRE FD option. You may need to provide details and confirm your NRI status online.
For New Customers

New customers can open a Canara Bank NRE FD account using two convenient methods.

Online Application:

Visit the Canara Bank website, navigate to the NRI banking section, and follow the online instructions to open an NRE FD. You'll likely need to fill an online form and upload required documents.

Offline Application:

Visit any Canara Bank branch in India. Request to open a Non-Resident External (NRE) Fixed Deposit account. Bank staff will guide you through the application process and required documentation.

Documents Required to Open a Canara NRE FD Account

The general documents required for opening a Canara Bank NRE FD account are:

Documents to be Submitted by NRIs

At the time of submitting an application to open an NRE FD account at Canara Bank, the following duly signed documents are to be submitted:
- Passport
- Valid work permit/employment visa / Residence Visa / Residence Permit
- Address proof
Documents to be Submitted by OCIs/PIOs

While submitting an application to open an NRE FD account at Canara Bank, the following duly signed documents are to be submitted:
- Passport
- PIO card or a past Indian passport
- Valid work permit/employment visa
- Address proof
Documents to be Submitted by Students

Students, while submitting an application to open an NRE FD account at Canara Bank, have to submit the following duly signed documents:
- Passport
- Valid student visa / I-20 form
- Proof of Address
Documents for Seafarers

Seafarers, while submitting an application to open an NRE FD account at Canara Bank, have to submit the following duly signed documents:
- Passport copy
- Visa copy

Conclusion

A secure way for NRIs to invest their money and grow it is through an NRE FD account. Canara Bank NRE FD rates are competitive and hence can be considered as a good option. Through NRE FDs, funds can be easily managed in India. If you are an NRI looking to invest your hard-earned money in India to get good returns, an NRE FD account is your go-to.

FAQ

Is NRE FD tax-free in Canara Bank?

The NRE FD interest is tax-free in Canara Bank.
What is the NRE FD interest rate in Canara?

The highest NRE FD interest rate offered by Canara Bank is 7.40%.
Which is better, NRE FD or NRO FD in Canara Bank?

Both NRE FD and NRO FD have different features, but the interest earned on NRE FD is tax-free, while this is not the case with NRO FD.
Is NRE FD a good investment option in Canara Bank?

If you want to invest your money in an asset with high guaranteed returns, NRE FD investment is a good investment option for you.

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*Past 10 Year annualised returns as on 01-04-2025
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 2 Cr. is for a 30 year old healthy individual investing Rs 18,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: 1,06,79,507 @ CAGR 4%; 2,12,15,817 @ CAGR 8%. All plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).