
According to reports from The Economic Times, NRE fixed deposits offer competitive interest rates for Non-Resident Indians (NRIs) across major banks. SBI provides 6.25% for deposits below ₹3 crore across various tenures, while PNB offers 6.45% for the 444-day Amrit Vrishti scheme. BOB provides 6.30% for deposits up to 5 years, with 6.50% for longer tenures. HDFC Bank offers 6.25% for 1 year deposits and 6.45% for 2 years deposits, while Axis Bank provides 6.25% for 1 year and 6.50% for 2 years tenures.
As reported by The Economic Times, NRE fixed deposits offer significant tax advantages for NRIs. Both principal and interest earned are exempt from taxation in India, making these deposits particularly attractive for foreign income management. NRE FD accounts can be opened by non-resident individuals of Indian nationality or Person of Indian Origin (PIO). NRIs can also open joint NRE FDs with other NRIs, and add PIOs and Overseas Citizens of India (OCIs) as joint account holders.
According to the comparison data, SBI offers 6.25% for deposits up to 1 year, 6.40% for 2-3 years, and 6.30% for 3-5 years. PNB provides 6.45% for the 444-day scheme and 6.75% for the 555-day Golden Goal scheme. BOB offers 6.30% for 1-3 years, 6.50% for 3-1203 days, and 6.00% for 5-10 years. HDFC Bank provides 6.25% for 1 year, 6.45% for 2 years, and 6.50% for 3-5 years. Axis Bank offers 6.25% for 1 year, 6.50% for 2 years, and 6.50% for 3-10 years.
As reported by The Economic Times, NRE FD rates depend on multiple factors including domestic interest rate scenario, bank liquidity needs, global financial markets, regulatory changes, and competition among banks. Unlike regular FDs, NRE FD rates also depend on the quantum of money NRIs bring into the country, making them sensitive to foreign exchange inflows. Banks regularly revise these rates based on these market conditions and competitive pressures in the NRI banking segment. Recent developments show bank credit expanded significantly in the fortnight ending June 30, with deposit growth also showing healthy increase. This credit demand stems from both consumer and corporate sectors, with corporate entities increasingly favoring banks over debt markets for funding.
The banking sector is receiving significant policy support for NRI deposits. Finance Minister Nirmala Sitharaman will meet public sector bank heads on Monday to review progress on attracting foreign currency deposits from NRIs. RBI withdrew interest rate ceilings on certain foreign currency deposits until September 30, while concessional forex swap facilities are offered to banks for FCNR(B) deposits to boost foreign currency inflows and credit flow to productive sectors. Recent market developments show the gap between credit and deposit growth widened to 570 basis points, indicating strong credit demand that banks are well-positioned to meet through enhanced deposit mobilization initiatives.