Is NRE FD tax-free in Kotak Bank?

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

What is the NRE FD interest rate in Kotak?

The highest NRE FD interest rate offered by Kotak is 7.05%.

Which is better, NRE FD or NRO FD in Kotak 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 Kotak 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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Disclaimer: # The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- 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: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. All plans listed here are of insurance companies’ funds.

Kotak Mahindra Bank NRE FD Rates

Kotak Bank NRE FD rates range from 4% to 7.05%, allowing your foreign income investments to grow significantly and at a fast pace. With tenures ranging from 7 days to 10 years, the FD interest rates in 2025 remain competitive with their industry counterparts. The principal amount and the interest earned is exempted from tax deductions. Find the details of the Kotak Bank NRE FD Rates in 2025 in India here.

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What is a Kotak Bank NRE Fixed Deposit?

The Kotak Bank NRE FD is a financial instrument through which Non-Resident Indians invest money for a predetermined time and grow that money by earning interest. The account offers a higher interest rate than that of a savings account. The principal amount invested by the investor and the interest earned on it are completely repatriable, which allows for the transfer of the entire fund value back to a foreign bank without any interruptions. Kotak Bank NRE FD is a convenient financial instrument that helps you invest and grow your foreign income in India.

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

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

	Rate of Interest (% P.A.)
Term	₹3 Crore & above to less than ₹10 Crore	₹10 Crore to ₹300 Crore and above
7 days to 14 days	4.00%	4.00%
15 days to 30 days	4.25%	4.75%
31 days to 45 days	5.00%	5.50%
45 days to 60 days	5.00%	5.75%
61 days to 90 days	5.50%	6.05%
91 days to 120 days	6.00%	6.45%
121 days to 179 days	6.00%	6.45%
180 days	7.00%	6.45%
181 days to 270 days	6.00%	6.60%
271 days to 279 days	5.75%	5.40%
280 days ‐ 364 days	6.50%	6.70%
365 days ‐ less than 15 months	7.05%	6.85%
15 months - less than 18 months	7.05%	6.85%
18 months - less than 2 Years	7.05%	6.80%
2 years and above but less than 3 years	6.80%	6.65%
3 years and above but less than 4 years	6.50%	6.50%
4 years and above but less than 5 years	6.35%	6.25%
5 years and above up to & inclusive of 7 years	6.20%	6.25%

Note: *Interest rates effective from April 24, 2025. Kotak Bank NRE FD rates are subject to change without prior notice. The calculation of annualised yields involves quarterly compounding.

Why Choose a Kotak Bank NRE FD Account?

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

Kotak Bank NRE FD provides tax benefits on interest earned over time.
The bank catering to different needs of various individuals offers a flexible tenure to deposit money ranging from 7 days to 10 years.
Upon maturity, the fixed deposit is automatically renewed for the same time period.
Investment can begin with an amount as low as ₹50,000.
The rate of interest earned is on par with resident deposits.
Kotak Bank NRE FD provides the benefit of a loan of up to 90% of your FD fund value.

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

In order to invest in the Kotak 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 Kotak Bank NRE FD Account?

For Existing Kotak Bank Customers

Kotak Bank offers an easy way to open an NRE FD account. Simply follow the given steps, and your NRE FD account will be opened in no time:

Via Mobile Banking:
- Visit the 'Banking' section, then select 'Fixed/Recurring Deposits'.
- Choose the option to 'Open Fixed Deposit'.
Via Net Banking:
- Go to the 'Investment' area and then select 'Deposits'.
- Choose to 'Open a Fixed/Recurring Deposit'.
For New Customers

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

Online Application:
- Step 1: Go to the Kotak Mahindra Bank website and find the NRE FD application in the NRI banking section.
- Step 2: Fill out the online form with your personal and NRE FD details.
- Step 3: Submit the application form.
- Step 4: Wait for a call from a bank official who will assist with documentation and potential overseas document pickup.
Offline Application:
- Step 1: Visit a Kotak Mahindra Bank branch that serves NRI customers.
- Step 2: Speak to a bank representative about opening an NRE FD.
- Step 3: Submit the required documents, such as passport copies, visa/permit copies, and address proof, to the representative.

Documents Required to Open Kotak NRE FD Account

The general documents required for opening a Kotak 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 Kotak 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 Kotak Bank, the following duly signed documents are to be submitted:
- Passport
- PIO card or 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 Kotak 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 Kotak Bank, have to submit the following duly signed documents:
- Passport copy
- Visa copy

Conclusion

One of the easiest ways for NRIs to judiciously invest and grow their earnings from abroad is by investing in a Kotak Bank NRE FD account. You can easily manage your funds in India without any worries. The account can be easily opened and maintained and also provides higher, tax-free returns. Keeping yourself up to date with Kotak Bank NRE FD rates lets you analyse and compare the rates and get the best interest in your FD investments.

FAQ

Is NRE FD tax-free in Kotak Bank?

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

The highest NRE FD interest rate offered by Kotak is 7.05%.
Which is better, NRE FD or NRO FD in Kotak 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 Kotak 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.

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*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).