Non-Resident External Account allows you to park your international earnings in Indian currency in India. When you put money into this account, it is converted into Indian Rupees (INR). This means you can deposit money in any foreign currency, such as US dollars, and withdraw it in Indian rupees.

Most of the banks offer fixed deposits for NRE customers and interest rates differ with each bank. Check which bank is offering the best rates on NRE FDs with this quick comparison of banks – SBI, HDFC Bank, ICICI Bank, PNB, and Canara Bank.

SBI NRE FD interest rates

No interest is paid if a deposit is removed from an NRE fixed deposit before the year mark. For balances under Rs 2 crore, SBI offers an interest rate ranging from 6.25 percent to 6.75 percent for a period ranging from one year to ten years. These rates are effective from December 13, 2022.

Source: Bank website


Premature withdrawal charges

According to the SBI Website, “The interest shall be 0.50% or 1% below the rate applicable at the time of Deposits for the period Deposit has remained with the Bank or 0.50% or 1% below the contracted rate, whichever is lower.”

HDFC Bank NRE FD rates

NRE deposits must be held for a minimum of one year. For accounts under Rs 2 crore with durations ranging from one to ten years, HDFC Bank offers interest rates in the range of 6.50 percent to 7 percent. The rates are effective from December 14, 2022.

Source: Bank website

ICICI Bank NRE FD rates

No interest will be paid if the deposit is withdrawn before one year tenure. For terms of one to ten years, ICICI Bank offers interest rates ranging from6.60 percent to 7 percent. The rates effective from December 16, 2022.

Source: Bank website

Canara Bank NRE FD interest rates

For amounts under Rs 2 crore, Canara Bank offers NRE fixed deposit rates ranging from 6.50 percent to 7 percent. The term of office is one year and up to ten years. The rates are effective from December 19, 2022.

Source: bank website

PNB NRE FD interest rates

Punjab National Bank offers NRE fixed deposit rates ranging from 6.25 percent to 7 percent. The term of office is one year and up to ten years. The rates are effective from November 11, 2022.

Source: Bank website