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Non-Resident External (NRE) fixed deposits continue to be a popular investment option for Non-Resident Indians (NRIs) looking to earn attractive returns on their overseas income while enjoying tax benefits and full repatriation. With interest rates on NRE deposits remaining elevated across several banks, investors have a wide range of options depending on their preferred investment tenure.<\/p>
NRE fixed deposits are term deposits opened using funds held in an NRE account. Since these accounts are maintained in Indian rupees, they allow NRIs to park their foreign earnings in India while earning interest. One of the biggest attractions of NRE fixed deposits is that both the principal amount and the interest earned are exempt from tax in India. In addition, no Tax Deducted at Source (TDS) is applicable, and both the principal and interest can be freely repatriated overseas.<\/p>
Most banks offer NRE fixed deposits with tenures ranging from one year to 10 years. Deposits held for less than one year generally do not earn interest. Many lenders also provide auto-renewal facilities, allow joint holding with other NRIs, and offer loans or overdraft facilities of up to 90% of the deposit amount.<\/p>
MUST READ:\u00a0Company FD comparison: Bajaj Finance vs Shriram Finance interest rates for 2026 at a glance<\/strong><\/p> Highest NRE FD rates<\/strong><\/p> Among major banks, DCB Bank offers the highest interest rate of 8.05% per annum for deposits with a tenure of more than one year and up to three years. It also offers 7.40% for deposits with tenures of more than three years up to five years and 7.25% for longer tenures of five to 10 years.<\/p> IndusInd Bank follows closely with interest rates of up to 7.99% for deposits with maturities of more than one year up to three years. The bank also offers 7.75% for one-year deposits and 7% for deposits with tenures between five and 10 years.<\/p> MUST READ:\u00a0Best small finance bank FD? Unity vs Utkarsh interest rates compared for 2026<\/strong><\/p> Among public sector banks, Canara Bank, Union Bank of India, Indian Overseas Bank and Punjab National Bank offer rates of up to 7.30% for deposits with tenures between one and three years. Bank of Baroda and Indian Bank offer up to 7.10%, while State Bank of India offers 6.80% for both one-year deposits and deposits between one and three years.<\/p> Private sector lenders also remain competitive. Federal Bank offers up to 7.50%, Kotak Mahindra Bank up to 7.40%, Axis Bank up to 7.10%, and South Indian Bank up to 7.40%, depending on the tenure.<\/p> NRE Fixed Deposit Interest Rates (Deposits below \u20b93 crore)\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0<\/strong><\/p> Key features<\/strong><\/p> Apart from tax-free returns and unrestricted repatriation, NRE fixed deposits offer several benefits that make them attractive for NRIs.<\/p> Funds are deposited in Indian rupees, and accounts can be closed before maturity, subject to the bank’s terms and conditions. Several banks also provide auto-renewal facilities so that the deposit is automatically renewed on maturity.\\<\/p> MUST READ:\u00a0HDFC Bank vs ICICI Bank FD rates: Which bank offers better returns in 2026?<\/strong><\/p> Many banks permit deposit holders to avail of loans or overdrafts of up to 90% of the deposit value, providing liquidity without breaking the deposit. Joint holding with another NRI is also permitted by several banks.<\/p> Some banks additionally offer tax-saving fixed deposits to NRIs that may qualify for deductions under Section 80C of the Income Tax Act, subject to the applicable rules.<\/p> Before investing, NRIs should compare interest rates across banks, review premature withdrawal rules, loan facilities and renewal terms, and select a tenure that aligns with their financial goals. While interest rates remain an important consideration, factors such as liquidity, flexibility and the financial strength of the bank should also influence the investment decision.<\/p> MUST READ:\u00a0SBI vs PNB FD rates: Which public sector bank offers better fixed deposit returns in 2026?<\/strong><\/p> <\/div> NRE fixed deposit, NRE FD interest rates 2026, NRI fixed deposit, best NRE FD rates, NRE deposit interest rates, tax-free NRE FD, NRE account benefits, NRI investment in India, NRE FD comparison, highest NRE FD interest rates#NRE #Fixed #Deposits #banks #offer #highest #interest #rates #NRIs1783475077<\/p> ","protected":false},"excerpt":{"rendered":" Non-Resident External (NRE) fixed deposits continue to be a popular investment option for Non-Resident Indians (NRIs) looking to earn attractive returns on their overseas income while enjoying tax benefits and full repatriation. With interest rates on NRE deposits remaining elevated across several banks, investors have a wide range of options depending on their preferred investment […]<\/p>\n","protected":false},"author":1,"featured_media":11215,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[10177,44625,6070,18202,16704,44631,1121,44632,44628,44626,44630,44623,44622,44624,44629,9793,6532,1122,44627],"class_list":["post-11214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-banks","tag-best-nre-fd-rates","tag-deposits","tag-fixed","tag-highest","tag-highest-nre-fd-interest-rates","tag-interest","tag-nre","tag-nre-account-benefits","tag-nre-deposit-interest-rates","tag-nre-fd-comparison","tag-nre-fd-interest-rates-2026","tag-nre-fixed-deposit","tag-nri-fixed-deposit","tag-nri-investment-in-india","tag-nris","tag-offer","tag-rates","tag-tax-free-nre-fd"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/11214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11214"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/11214\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/11215"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11214"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Bank<\/strong><\/td> 1 Year<\/strong><\/td> More than 1 Year to 3 Years<\/strong><\/td> More than 3 Years to 5 Years<\/strong><\/td> More than 5 Years to 10 Years<\/strong><\/td> <\/tr> Union Bank of India<\/td> 6.80%<\/td> 6.40% – 7.30%<\/td> 6.50%<\/td> 6.50%<\/td> <\/tr> Punjab National Bank<\/td> 6.80%<\/td> 6.80% – 7.00%<\/td> 6.50%<\/td> 6.50%<\/td> <\/tr> Punjab & Sind Bank<\/td> 6.30%<\/td> 6.00% – 7.45%<\/td> 6.00%<\/td> \u2014<\/td> <\/tr> IDBI Bank<\/td> 6.80%<\/td> 6.80% – 7.00%<\/td> 6.50%<\/td> 6.50%<\/td> <\/tr> Canara Bank<\/td> 6.80%<\/td> 6.85% – 7.30%<\/td> 7.40%<\/td> 6.70%<\/td> <\/tr> Indian Overseas Bank<\/td> \u2014<\/td> 6.80% – 7.30%<\/td> 6.50%<\/td> 6.50%<\/td> <\/tr> UCO Bank<\/td> 6.50%<\/td> 6.30% – 6.80%<\/td> 6.20%<\/td> 6.10%<\/td> <\/tr> Bank of India<\/td> 6.80%<\/td> 6.50%<\/td> 6.00%<\/td> 6.00%<\/td> <\/tr> Bank of Baroda<\/td> 6.80%<\/td> 6.75% – 7.10%<\/td> 6.75%<\/td> 6.45%<\/td> <\/tr> Indian Bank<\/td> 6.10%<\/td> 6.70% – 7.10%<\/td> 6.25%<\/td> 6.25%<\/td> <\/tr> State Bank of India<\/td> 6.80%<\/td> 6.80%<\/td> 6.50%<\/td> 6.25%<\/td> <\/tr> Bank of Maharashtra<\/td> 6.75%<\/td> 6.50%<\/td> 6.50%<\/td> 6.50%<\/td> <\/tr> Karur Vysya Bank<\/td> 7.00%<\/td> 7.00%<\/td> 7.00%<\/td> 6.25%<\/td> <\/tr> DCB Bank<\/strong><\/td> 7.10%<\/strong><\/td> 7.10% – 8.05%<\/strong><\/td> 7.40%<\/strong><\/td> 7.25%<\/strong><\/td> <\/tr> South Indian Bank<\/td> 6.70%<\/td> 6.50% – 7.40%<\/td> 6.70%<\/td> 6.00%<\/td> <\/tr> City Union Bank<\/td> 7.00%<\/td> 6.50%<\/td> 6.25%<\/td> 6.25%<\/td> <\/tr> Federal Bank<\/td> 7.00%<\/td> 7.15% – 7.50%<\/td> 7.10% – 7.40%<\/td> 6.60%<\/td> <\/tr> IndusInd Bank<\/td> 7.75%<\/td> 7.25% – 7.99%<\/td> 7.25%<\/td> 7.00%<\/td> <\/tr> Axis Bank<\/td> 6.70%<\/td> 6.70% – 7.10%<\/td> 7.10%<\/td> 7.00%<\/td> <\/tr> Tamilnad Mercantile Bank<\/td> 7.00%<\/td> 6.75% – 7.10%<\/td> 6.50%<\/td> 6.50%<\/td> <\/tr> Kotak Mahindra Bank<\/td> 7.10%<\/td> 7.10% – 7.40%<\/td> 7.00%<\/td> 6.20%<\/td> <\/tr> J&K Bank<\/td> 7.00%<\/td> 7.00%<\/td> 6.75%<\/td> 6.50%<\/td> <\/tr> Karnataka Bank<\/td> 7.50%<\/td> 6.75%<\/td> \u2014<\/td> \u2014<\/td> <\/tr> Dhanlaxmi Bank<\/td> 6.75%<\/td> 6.50% – 6.75%<\/td> 7.25%<\/td> 6.60%<\/td> <\/tr> Thane Janata Sahakari Bank<\/td> 7.50%<\/td> 6.50% – 7.50%<\/td> 6.25%<\/td> 6.25%<\/td> <\/tr> Saraswat Co-operative Bank<\/td> 7.15%<\/td> 7.00% – 7.50%<\/td> 6.75%<\/td> 6.75%<\/td> <\/tr> Abhyudaya Co-operative Bank<\/td> 6.60%<\/td> 7.00% – 7.60%<\/td> 6.25%<\/td> 6.25%<\/td> <\/tr> <\/tbody> <\/table>