Which NRE FD gives the best rate this week?
Tax-free, fully repatriable. ₹50L over 5 years = ~₹3L extra at the leader vs the laggard.
| Bank | 1y NRE | 2y NRE | 5y NRE | Min FD | Apply | Verify |
|---|---|---|---|---|---|---|
| RBL Bank leader | 7.50% | 8.00% | 7.10% | ₹25,000 | Apply → | Verify ↗ |
| Yes Bank leader | 7.25% | 7.75% | 7.25% | ₹10,000 | Apply → | Verify ↗ |
| IndusInd Bank | 7.25% | 7.75% | 7.25% | ₹10,000 | Apply → | Verify ↗ |
| IDFC First Bank leader | 7.00% | 7.50% | 7.25% | ₹10,000 | Apply → | Verify ↗ |
| Federal Bank | 6.80% | 7.10% | 6.50% | ₹10,000 | Apply → | Verify ↗ |
| Axis Bank | 6.70% | 7.10% | 7.00% | ₹10,000 | Apply → | Verify ↗ |
| Kotak Mahindra | 6.60% | 7.05% | 6.20% | ₹10,000 | Apply → | Verify ↗ |
| Bank of Baroda | 6.85% | 7.05% | 6.50% | ₹10,000 | Apply → | Verify ↗ |
| ICICI Bank | 6.70% | 7.00% | 7.00% | ₹10,000 | Apply → | Verify ↗ |
| HDFC Bank | 6.60% | 7.00% | 7.00% | ₹25,000 | Apply → | Verify ↗ |
| State Bank of India | 6.80% | 7.00% | 6.50% | ₹10,000 | Apply → | Verify ↗ |
| DBS Bank India | 6.50% | 7.00% | 6.50% | ₹10,000 | Apply → | Verify ↗ |
| Canara Bank | 6.85% | 6.90% | 6.70% | ₹10,000 | Apply → | Verify ↗ |
| Punjab National Bank | 6.75% | 6.80% | 6.50% | ₹10,000 | Apply → | Verify ↗ |
| Bank of India | 6.80% | 6.75% | 6.50% | ₹10,000 | Apply → | Verify ↗ |
Three things to know before you lock in
FD rates are simple on the surface; what kills returns is misunderstanding the structure.
1. NRE vs NRO vs FCNR — they earn different things
NRE FD: rupee FD funded by foreign income (NRE account). Tax-free in India, fully repatriable. The rates on this page. NRO FD: rupee FD funded by Indian income (rent, dividends). Same headline rate but interest is TAXABLE (30% TDS) and repatriation capped at $1M/year. FCNR FD: foreign-currency FD (USD/GBP/EUR). Different rate schedule (5–6% on USD), tax-free, no FX risk on principal. Full breakdown →
2. Premature withdrawal eats most of the gain
Most NRE FDs charge a 1% penalty on premature withdrawal AND apply the rate for the actual stayed-tenor (lower than the booked rate). On a ₹50 lakh, 5-year FD broken at year 2: the rate drops from 7.25% to ~6.7%, plus 1% penalty = effective return ~5.7%. Lock in the tenor you can actually leave alone.
3. GIFT City IBU is the new "FCNR alternative" worth knowing
USD FDs at GIFT City IFSC Banking Units (HDFC, ICICI, Kotak, SBI etc.) pay roughly 50–75 bps over the same bank's FCNR rate, with identical tax treatment and credit risk. On $100K USD: HDFC FCNR ~5.10% = $5,100/yr vs HDFC IBU ~5.85% = $5,850/yr. IBU vs FCNR — 8 banks →
Safety: how protected is your NRE FD?
Every NRE FD at every Indian bank is covered by DICGC (Deposit Insurance and Credit Guarantee Corporation), which is wholly owned by RBI. Coverage is ₹5 lakh per depositor per bank — same as resident deposits. Above that, you rely on the bank's underlying solvency.
Tier 1 (lowest risk): SBI, HDFC, ICICI, Kotak Mahindra, Axis. Designated Domestic Systemically Important Banks (D-SIBs) by RBI — explicitly considered too-big-to-fail. SBI also carries a direct government guarantee.
Tier 2 (very safe, slightly higher rates): Federal Bank, IndusInd, IDFC First, Yes Bank, Bank of Baroda. All RBI-regulated, well-capitalized, but not D-SIBs. Typically pay 0.25–0.5% more than Tier 1 — that's the risk premium.
Tier 3 (higher rates, more research needed): RBL Bank, Bandhan Bank, smaller private banks. Pay 0.5-0.75% above Tier 1. Check the bank's capital adequacy ratio (CAR) and gross NPA% on their latest quarterly report before locking ₹10L+.
Depends on your residence, US tax exposure, currency goal, and RNOR status. The tools answer this — based on your actual situation, not a generic decision tree.