NRE FD up to 7.81% — fully tax-free in India and fully repatriable · SBI NRE FD at 7.25% from April 2026 · FCNR USD up to 5.45% · NRE vs NRO vs FCNR explained simply · Interactive return calculator · Complete guide for NRIs in USA, UK, UAE, Canada, Singapore and Australia.
📋 Who can invest in NRI FDs? Any Indian citizen with NRI status (working/living abroad for employment, business or any other purpose), Person of Indian Origin (PIO) and Overseas Citizen of India (OCI) can open NRE, NRO and FCNR accounts in India. You need a valid passport, visa/work permit, proof of overseas address and proof of NRI status. The process can be completed online without visiting India.
Calculate exactly how much your NRI FD investment will return — in both INR and your home currency:
NRE FD interest is completely tax-free in India — no TDS deducted. Both principal and interest are fully repatriable to your country of residence. Minimum tenure is 1 year.
| Bank | 1 Year | 2 Years | 3 Years | 5 Years | Best Rate |
|---|---|---|---|---|---|
| IndusInd Bank Highest | 7.75% | 7.81% | 7.50% | 7.25% | 7.81% |
| Yes Bank Best Private | 7.25% | 7.50% | 7.25% | 7.00% | 7.50% |
| RBL Bank | 7.40% | 7.40% | 7.10% | 7.00% | 7.40% |
| DCB Bank | 7.25% | 7.25% | 7.25% | 7.00% | 7.25% |
| Kotak Mahindra Bank | 7.10% | 7.25% | 7.10% | 6.80% | 7.25% |
| SBI Safest PSU | 7.10% | 7.00% | 6.75% | 6.50% | 7.25% |
| Axis Bank | 7.10% | 7.20% | 7.10% | 7.00% | 7.20% |
| HDFC Bank | 7.00% | 7.10% | 7.00% | 7.00% | 7.10% |
| ICICI Bank | 7.00% | 7.10% | 7.00% | 7.00% | 7.10% |
| Bank of Baroda | 7.15% | 7.00% | 6.80% | 6.50% | 7.15% |
Tip: NRE FD interest is tax-free in India regardless of how much you earn. However, you must declare this income in your country of residence as per local tax laws. USA-based NRIs must declare NRE FD interest in their US tax return (FBAR if balance exceeds USD 10,000 at any point). Always consult a tax advisor in your country of residence.
NRO FDs are for income earned in India — rental income, pension, dividends, property sale proceeds. Interest is taxable at 30% TDS in India. DTAA (Double Taxation Avoidance Agreement) can reduce this if India has treaty with your country.
| Bank | 1 Year | 2 Years | 3 Years | TDS Rate |
|---|---|---|---|---|
| IndusInd Bank | 7.75% | 7.81% | 7.50% | 30% TDS |
| Yes Bank | 7.25% | 7.50% | 7.25% | 30% TDS |
| SBI | 7.10% | 7.00% | 6.75% | 30% TDS |
| HDFC Bank | 7.00% | 7.10% | 7.00% | 30% TDS |
| ICICI Bank | 7.00% | 7.10% | 7.00% | 30% TDS |
| Axis Bank | 7.10% | 7.20% | 7.10% | 30% TDS |
DTAA Benefit: If you are a resident of USA, UK, UAE, Canada, Singapore etc. — India has Double Taxation Avoidance Agreement with these countries. Submit Form 10F and Tax Residency Certificate (TRC) from your country to your bank to claim reduced TDS rate under DTAA. For example, USA-India DTAA limits TDS on NRO interest to 15% instead of 30%.
FCNR deposits are in foreign currency — your money stays in USD/GBP/EUR without converting to INR. No exchange rate risk. Interest is tax-free in India.
| Bank | USD Rate | GBP Rate | EUR Rate | Best Tenure |
|---|---|---|---|---|
| Yes Bank Highest USD | 5.15% | 4.75% | 3.25% | 2-3 years |
| IndusInd Bank | 5.00% | 4.50% | 3.00% | 1-2 years |
| IDBI Bank | 5.00% | 4.25% | 2.75% | 1-3 years |
| SBI | 4.75% | 4.25% | 2.50% | 1-5 years |
| Axis Bank | 4.50% | 4.00% | 2.50% | 1-3 years |
| HDFC Bank | 4.50% | 3.65% | 1.70% | 1-5 years |
| ICICI Bank | 4.50% | 3.75% | 2.00% | 1-3 years |
| Factor | NRE FD | NRO FD | FCNR |
|---|---|---|---|
| Best for | Foreign income | India income | Large amounts |
| Tax in India | Zero — tax-free | 30% TDS | Zero — tax-free |
| Currency | INR (converted) | INR | Foreign currency |
| Exchange rate risk | Yes | Yes | None |
| Repatriation | Full | Up to USD 1M/yr | Full |
| Minimum tenure | 1 year | 7 days | 1 year |
| Maximum tenure | 10 years | 10 years | 5 years |
| Recommended for | Most NRIs | NRIs with India income | NRIs with USD 50K+ |
Best strategy for most NRIs: Open NRE FD for your foreign salary/savings remitted to India. It gives tax-free returns of 7.10-7.81% — far better than savings accounts in USA (4-5%), UK (3-4%) or UAE (near zero). If your India FD balance exceeds USD 10,000 at any point during the year, file FBAR in USA. Consult your country tax advisor for local filing requirements.
For best rate choose IndusInd (7.81%) or Yes Bank (7.50%). For safest choose SBI (7.25%) or HDFC (7.10%). All allow online account opening from abroad.
Valid passport, valid visa/work permit, proof of overseas address (utility bill/bank statement), PAN card, and passport size photographs. All documents can be submitted digitally.
Visit bank's NRI section online. Complete video KYC (available at most banks). Account typically opens within 3-5 working days. You can also authorise a trusted family member in India through Power of Attorney.
Wire transfer from your overseas bank account to the NRE account. Use services like Wise, RemitGuru, or direct SWIFT transfer. Money converts to INR automatically at prevailing exchange rate.
Login to net banking. Go to Deposits section. Choose NRE FD. Select amount, tenure and interest payout preference (monthly/cumulative). Confirm and FD is booked instantly. Certificate available immediately.
Our NRI banking experts will guide you through the entire process — best bank, best rate, document checklist and repatriation — free of charge.
Get Free NRI Banking Advice All FD RatesDisclaimer: NRE FD rates shown are as of April 2026 and sourced from bank websites and RBI data. Rates are subject to change without notice. NRE FD interest is tax-free in India but may be taxable in your country of residence. FBAR filing requirements apply to US residents. Repatriation rules as per RBI Master Directions. Always consult a tax advisor in your country of residence and a banking advisor in India before investing. FinMandi is not a bank or investment advisor.