Today's NRE Fixed Deposit rates across the 15 Indian banks worth considering. Sorted by the 2-year rate, leaders flagged, "Verify ↗" link on every row goes straight to that bank's NRI FD rate page so you can confirm before committing. NRE FD interest is tax-free in India and the principal is fully repatriable.
Why we focus on NRE FDs: Interest is tax-free in India and the principal is fully repatriable. NRO FDs (for Indian-source income like rent) pay similar rates but interest is taxable + repatriation capped at $1M/year. FCNR FDs are held in foreign currency (USD/GBP/EUR) — see each bank's FCNR schedule.
Rates change monthly — verify directly with the bank before locking in. On ₹50 lakh for 5 years, the gap between leader and laggard is roughly ₹3 lakh in interest.
| Bank | 1y NRE | 2y NRE | 5y NRE |
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FD rates are simple on the surface; what kills returns is misunderstanding the structure.
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 →
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.
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 →
FD rates are one decision in the bigger NRI banking flow.