What is Canara Bank NRE FD Rates?

Canara Bank NRE FD rates are an attractive option for NRIs looking to invest in India. As of February 2024, the interest rates for Canara Bank NRE FDs are structured below.

What are the Canara Bank NRE Fixed Deposit Rates?

1. 1 year: 6.90%

2. Above 1 year to less than 2 years: 6.90%

3. 2 years to less than 3 years: 6.85%

4. 3 years to less than 5 years: 6.80%

5. 5 years to 10 years: 6.70%

These rates apply to deposits below INR 2 crore and are subject to change periodically​​.

Key Features of Canara NRE FD rates:

1. Tax Benefits: The interest earned on NRE FDs is tax-free in India, providing a significant advantage for NRIs as they do not have to pay taxes on the interest income.

2. Repatriation: Both the principal amount and the interest earned are fully repatriable, allowing NRIs to transfer funds back to their country of residence without any restrictions.

3. Premature Withdrawal: Premature withdrawal is allowed after one year with a penalty of 1%. The deposit will earn either 1% less than the current applicable rate for the period it has been held or 1% less than the contracted rate, whichever is lower​​.

4. Loan Against FD: Canara Bank offers loans up to 90% of the FD amount, providing liquidity without breaking the FD. This can be particularly useful for NRIs needing funds for emergencies or other purposes.

5. Tenure Options: The NRE FD can be held for a tenure ranging from 1 year to 10 years, offering flexibility based on the investor's financial goals and requirements.

Eligibility and Process:

To open an NRE FD with Canara Bank, NRIs or Persons of Indian Origin (PIOs) need to provide necessary documents like a copy of the PAN card, proof of identity, and proof of address. The process involves downloading and filling out the application form from the Canara Bank website and submitting it along with the required documents to a designated branch​​.

This is all about Canara Bank NRE FD rates.

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