What is an SBI NRE Fixed Deposit?
The SBI NRE FD is a fixed deposit facility offered by the State Bank of India (SBI), designed for Non-Resident Indians (NRIs) to invest their foreign earnings in safe investment options and earn interest on them. The service offers various benefits, including tax-free interest and full repatriation, which means whenever NRIs need their funds, they can easily transfer their money to their NRE accounts without any restrictions.
Rate of Interest on SBI Non-Resident External (NRE) FD Account Deposits
The interest rates received on SBI NRE fixed deposit accounts are as follows:
| Tenors |
Below Rs. 3 Crore |
Rs. 3 Crore & Above |
| 1 year to < 2 years |
6.70% |
6.80% |
| 444 Days (AMRIT VRISHTI) |
7.05% |
– |
| 2 years to < 3 years |
7.05% |
6.75% |
| 3 years to < 5 years |
6.75% |
6.50% |
| 5 years to 10 years |
6.50% |
6.25% |
| Premature withdrawal |
In case of withdrawal within a year, no interest is payable. |
No interest is payable if the deposit is withdrawn within a year. |
Penalty for premature withdrawal for retail term deposits will be applicable as under (w.e.f April 1, 20217):
| Description |
Penalty (All Tenors) |
| Up to Rs.5.00 lacs |
0.50% |
| Above Rs.5.00 lacs but below Rs.1 Crore |
1% |
The interest paid on this deposit will be the lowest of these options: either 0.50% or 1% less than the current interest rate for deposits of the same duration, or 0.50% or 1% less than the interest rate you initially agreed upon. |
In case of early withdrawal (after it's been with the bank for at least a year), the interest received will be the lower of either the standard rate for the time the money was actually held by the bank, or the originally agreed-upon interest rate minus a 1% penalty for the early withdrawal. |
*Interest rates w.e.f. April 15, 2025. The SBI NRE FD rates are subject to change, without prior notice.
Why Choose SBI NRE FD Rates?
SBI NRE FD rates offer various benefits to Non-Resident Indian investors, encompassing the following:
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Higher rate of interest than the savings account.
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Facility of full repatriation so the account holder can transfer their money completely any time they want.
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Interest received on the deposits is non-tax deductible.
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Loan facilities are available against the amount deposited in the NRE FD account.
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The account holder can designate a nominee for the NRE FD account.
What Are the Eligibility Criteria for an SBI NRE FD Account?
In order to open an NRE FD account, the following conditions are to be fulfilled:
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The customer must fall under one of the NRI, PIO, or OCI categories.
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Must have valid ID proof, including an Indian passport or a PIO card.
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Required to show authentic overseas address proof.
How to Open an SBI NRE FD Account?
For New Customers Without an NRE Savings Account
To open an FD account, you must open an NRE account, based on the following (online/offline) procedure:
-
Online Account Opening
To open an NRE account at SBI online, complete the application digitally, and then send it to the Global NRI Centre in India by following their specified steps.
-
Offline Account Opening
For the offline method, you can either visit an SBI Foreign Office or an associated exchange house to submit a manually filled application, after checking if they are authorized to forward it to India; alternatively, you can directly mail the application to your preferred SBI branch in India after downloading and completing it.
For Existing Customers Having an NRE Savings Account
Here are the steps to deposit funds as NRE FD at the State Bank of India:
Step 1
Visit the SBI website. Login to SBI internet banking.
Step 2
Go to the site’s homepage, click on the 'Deposit Schemes' button, followed by clicking on 'Term Deposits'. Click on 'e-fixed deposit' as the next option.
Step 3
Choose the FD type you want to open.
Step 4
Select the account from which your FD amount will be deposited.
Step 5
Fill in your FD principal value in the 'Amount' column.
Step 6
Select a cumulative/STDR deposit or a non-cumulative/TDR deposit.
Step 7
Select a maturity date.
Step 8
Accept the terms and conditions, and open your NRE FD by clicking on the 'Submit' tab.
Documents Required to Open SBI NRE FD Account
SBI has divided NRI status holders and PIO/OCI status holders into two categories for depositing the following documents in order to open the NRE FD account.
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For NRIs
If you are an NRI status holder, then any one document from each category, along with a self-declaration of address proof with positive confirmation, is to be submitted:
Proof of Status:
Valid Visa / Work Permit
Any one of the following for NRIs with Seafarer work profile:
-
Valid Job Contract
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Continuous Discharge Certificate (CDC), if the disembarkation stamp on CDC is not more than 6 months old
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Expired contract letter (if the disembarkation stamp on CDC is not more than 6 months old)
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Last pay slip evidencing employment with a shipping company (not more than 6 months old)
Proof of Identity (Applicable for both NRIs and PIOs/OCIs):
Relevant pages of Passport
Current Address document (Overseas only)
NRIs with seafarer work profile and on ship, can either give employer's overseas address or Indian address (Applicable for both NRIs and PIOs/OCIs):
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Relevant pages of Passport (mentioning overseas address)
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Government-issued National Identity Card at the country of residence
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Driving License issued abroad
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Utility Bill (Electricity, Telephone, Gas)
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Original copy of latest overseas bank account or existing NRE account statement carrying overseas address
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Employer's certificate
Proof of Permanent Address (Overseas / Indian):
Additional proof for applicants who are not visiting our Branch for opening the account (Non-face-to-face) (Applicable for both NRIs and PIOs/OCIs):
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Cheque drawn on the overseas Bank account
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Cancelled / Paid Cheque of the overseas Bank account
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Proof of Income / Pay Slip / Tax return
Additional requirement (Applicable for both NRIs and PIOs/OCIs):
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For PIOs/OCIs
If you are a PIO/OCI status holder the any one document from each category along with the self declaration of address proof with positive confirmation are to be submitted:
Proof of Status:
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Valid PIO Card
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Valid OCI Card
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Relevant pages of Passport of parents or grand-parents, establishing their Indian Origin
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Marriage Certificate establishing spouse's Indian Origin
Proof of Permanent Address (Overseas / Indian):
Relevant pages of Passport
Conclusion
The SBI NRE FD account has made the financial handling of NRIs' foreign earnings much simpler. The NRE fixed deposit account offers a higher interest rate than a savings account, and the earnings from it are exempt from tax deductions. By thoroughly understanding the NRE FD interest rates, you can make an informed decision that aligns with your financial goals.
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