NRI Fixed Deposit Interest Rates in India

Learning how to use NRI fixed deposit rates in India can come across as confusing, especially with terms like NRE, NRO, FCNR, and RFC. This complexity makes it hard for non-resident Indians to figure out the best financial options. It gets even trickier with eligibility criteria and the process of opening an account. But don't worry, let's take an in-depth look into NRI Fixed Deposit rates in India.

What Are NRI Fixed Deposits?

NRI fixed deposits, or Non-Resident Indian fixed deposits, are specialised financial instruments designed for individuals who reside outside India but wish to invest their funds in Indian banks. These fixed deposits cater to the unique needs and preferences of NRIs, offering them a secure and lucrative avenue for wealth growth.

Types of NRI Fixed Deposits

When it comes to NRI fixed deposits in India, there are various types tailored to meet the diverse financial needs of non-resident Indians. Let's delve into the specifics:

NRE Fixed Deposit Rates

Opting for NRE deposits is a prevalent choice among fixed deposit options. This category allows NRIs to deposit their earnings in a bank account for savings or investments, earning attractive interest rates. Unlike domestic FDs, NRE deposits accept deposits only in Indian currency. The tenure and interest rates differ, offering full repatriability and tax-free benefits. 

Bank	Tenure	Rate of Return (p.a.)
HDFC Bank	1 year to 10 years	6.60% - 7.75%
SBI Bank	1 year to 10 years	6.00% - 7.10%
Axis Bank	1 year to 10 years	6.70% - 7.10%
Kotak Mahindra Bank	1 year to 10 years	6.25% - 7.98%
ICICI Bank	1 year to 10 years	6.70% - 7.10%

FCNR Fixed Deposit Rates in United States Dollar

Investors can choose a Foreign Currency Non-Repatriable (FCNR) deposit to park their funds in globally accepted foreign currencies. Major banks typically accept Great Britain Pound, United States Dollar, Euro, Canadian Dollar, Japanese Yen, and Singapore Dollar for FCNR deposits. FCNR (Foreign Currency Non-Resident) fixed deposits allow NRIs to deposit and maintain funds in foreign currencies. This shields them from currency fluctuations and provides the flexibility to choose from various currencies. 

Bank	Tenure	Rate of Return (p.a.)
HDFC Bank	1 year to 5 years	0.01% - 5.75%
SBI Bank	1 year to 5 years	6.00% - 7.10%
Axis Bank	1 year to 5 years	4.25% - 5.00%
Kotak Mahindra Bank	1 year to 5 years	2.75% - 7.98%
ICICI Bank	1 year to 5 years	3.50% - 5.95%

RFC Fixed Deposit Rates in United States Dollar

An RFC Fixed Deposit refers to a special type of fixed deposit known as a Resident Foreign Currency Fixed Deposit. These deposits, available in the United States Dollar, Great Britain Pound, and Euro in most banks, offer fully repatriable interest earnings. This financial instrument is designed for individuals who have returned to India after residing abroad and hold foreign currency. The RFC Fixed Deposit allows them to conveniently maintain and manage their foreign earnings within the Indian banking system.

Bank	Tenure	Rate of Return (p.a.)
HDFC Bank	Up to 3 years	0.01% - 4.95%
SBI Bank	1 year to 3 years	1.50% - 5.60%
Axis Bank	1 year to 5 years	4.00% - 5.60%
Kotak Mahindra Bank	1 year to 5 years	4.60% - 5.80%
ICICI Bank	Up to 3 years	0.25% - 5.60%

NRO Fixed Deposit Rates

NRO deposits serve as another option for NRIs, similar to NRE deposits in terms of the deposited currency. However, the interest rates for NRO deposits align with domestic deposits. NRO fixed deposits are ideal for NRIs earning income in India or looking to invest their local earnings. While the interest earned is taxable, NRO fixed deposit rates in India are competitive, making them a popular choice among NRIs.

Bank	Tenure	Rate of Return (p.a.)
HDFC Bank	7 Days to 10 Years	3.00% - 7.75%
SBI Bank	7 Days to 10 Years	3.00% - 7.10%
Axis Bank	7 Days to 10 Years	3.50% - 7.25%
Kotak Mahindra Bank	7 Days to 10 Years	2.75% - 7.98%
ICICI Bank	7 Days to 10 Years	3.-00% - 7.00%

NRI Fixed Deposits in India: Eligibility Criteria

The eligibility criteria for non-resident Indian (NRI) fixed deposit accounts vary from bank to bank, but there are some general requirements that all NRIs must meet.

• Must be an NRI: This means that you must have a valid Indian passport and a valid Permanent Account Number (PAN) card. You must also be of legal age (18 years or above).
• Must have a source of income outside India: This means that you must have income from a job, business, or investment that is not in India.
• Must be able to provide proof of identity and address: This may include your passport, PAN card, visa, and residence permit.
• Must be able to deposit the minimum amount required by the bank: The minimum deposit amount varies from bank to bank, but it is typically in the range of INR 5,000 to INR 10,000.

Once you have met all of the eligibility criteria, you can apply for an NRI fixed deposit account at any Indian bank. You can apply online or at a bank branch.

Here are some additional eligibility criteria that some banks may have:

• Minimum age: Some banks may have a minimum age requirement for NRI fixed deposit accounts. This requirement may be higher than the general minimum age requirement of 18 years.
• Minimum tenure: Some banks may have a minimum tenure requirement for NRI fixed deposit accounts. This requirement may be higher than the general minimum tenure requirement of 7 days.
• Maximum deposit amount: Some banks may have a maximum deposit amount limit for NRI fixed deposit accounts. This limit may be lower than the general maximum deposit amount limit for domestic fixed deposit accounts.

It is important to check with the bank you are interested in opening an NRI fixed deposit account with to find out their specific eligibility criteria.

Procedure to Open and Apply for an NRI Fixed Deposit Account

To open an NRI fixed deposit account, you can follow these steps:

1. Choose a bank and a fixed deposit scheme: Many different banks in India offer NRI fixed deposit accounts. You can choose a bank that has a good reputation and that offers competitive interest rates. You should also compare different fixed deposit schemes to find one that meets your investment goals.
2. Submit the required documents: You will need to submit certain documents to the bank to open an NRI fixed deposit account. These documents may include your passport, PAN card, visa, residence permit, and proof of income.
3. Make the initial deposit: Once you have submitted the required documents, you will need to make the initial deposit into your NRI fixed deposit account. The minimum deposit amount varies from bank to bank, but it is typically in the range of INR 5,000 to INR 10,000.
4. Sign the fixed deposit agreement: You will need to sign a fixed deposit agreement with the bank. This agreement will outline the terms and conditions of your investment, such as the interest rate, tenure, and withdrawal options.
5. Receive a confirmation receipt: Once you have signed the fixed deposit agreement, the bank will give you a confirmation receipt. This receipt will serve as proof of your investment.

Here are some additional tips for opening an NRI fixed deposit account:

• Compare interest rates: Different banks offer different interest rates on NRI fixed deposit accounts. It is important to compare interest rates from different banks before you open an account.
• Choose the right tenure: You can choose a tenure of your choice, from as short as 7 days to as long as 10 years. The longer the tenure, the higher the interest rate you will earn. However, you should choose a tenure that meets your investment goals.
• Consider your tax liability: The interest earned on NRI fixed deposit accounts is taxable in India. You should consider your tax liability before you open an account.

Advantages of NRI Fixed Deposits in India

• High Interest Rates: NRI FDs typically provide higher interest rates compared to domestic FDs, given that NRIs are considered lower-risk investors.
• Flexibility in Tenure: NRIs can choose FD tenures ranging from 7 days to 10 years, offering flexibility to align with their financial goals.
• Government Backing for Security: NRI FDs are backed by the Indian government, ensuring the safety and security of the investment.
• Deposit and Save Foreign Earnings: FDs provide an ideal option for NRIs to deposit and save money earned abroad.
• Tax-Exempt FDs: Two types of FDs for NRIs are exempted from tax, offering additional financial benefits.
• Overdraft and Loan Facilities: NRIs can avail of overdraft and loan facilities against their FDs, enhancing financial flexibility.
• Nomination Option: FDs allow NRIs the option of nomination, ensuring a smooth transition of assets in case of unforeseen events.
• Goal-Oriented Savings: FDs serve as a strategic means for NRIs to save for specific goals like retirement or education.
• Retirement Savings: Long-term FDs can be a valuable tool for NRIs to accumulate a lump sum for a secure retirement.
• Education Funding: NRIs can invest in FDs to fund their children's education, ensuring a steady income stream for tuition and related expenses.
• Financial Emergency Preparedness: FDs serve as a financial cushion for NRIs, offering security in unforeseen circumstances such as job loss or illness.

NRI Fixed Deposits and Their Key Differences

Type of NRI FD	Key Differences
NRE Fixed Deposits	- Denominated in Indian Rupees.
	- Interest is tax-free in India.
	- Full repatriability of both principal and interest.
	- Ideal for parking foreign earnings in India.
FCNR Fixed Deposits	- Accepts deposits in foreign currencies like USD, GBP, EUR, etc.
	- Shields from currency fluctuations.
	- Full repatriability of both principal and interest.
	- Suitable for NRIs looking to maintain funds in foreign currencies.
RFC Fixed Deposits	- For NRIs returning to India soon.
	- Accepts deposits in USD, GBP, EUR, etc.
	- Full repatriability of interest earnings.
	- Provides a smooth transition for NRIs moving back to India.
NRO Fixed Deposits	- Accepts deposits in Indian Rupees.
	- Interest is taxable in India.
	- Ideal for NRIs with income sources in India.
	- Full or partial repatriability of both principal and interest, subject to certain conditions.

How NoBroker Can Help

Opening an NRI FD account can be a quick albeit complicated process, which includes tons of research on your best banking options with the best NRI fixed deposit rates in India and more. A good bank will be able to guide and help throughout the process, taking care of that aspect of your finances in India. And just like a good bank, NoBroker is here to guide you through the process of property management in India. NoBroker NRI property management services can help NRIs with a variety of tasks, including:

• Tenant screening and selection: NoBroker can help NRIs screen and select tenants for their properties. This includes conducting background checks and verifying employment and income.
• Rental agreement drafting and execution: NoBroker can help NRIs draft and execute rental agreements. This ensures that the terms of the agreement are clear and enforceable.
• Rental collection and maintenance management: NoBroker can collect rent from tenants and manage maintenance issues. This frees up NRIs to focus on their other commitments.
• Tax filing assistance: NoBroker can help NRIs file their taxes in India. This includes calculating income and expenses and filing the necessary returns.

Frequently Asked Questions