NRE Fixed Deposit (FD) - Interest Rates, Benefits, and More

As an NRI, you can deposit your foreign currency in India using a Non-resident External (NRE) fixed deposit account. These NRE accounts come with a wide range of features and benefits. They hold the invested amount in Indian Rupees. You can also repatriate the complete deposit, which includes the principal and interest, at any time.

The NRE FD rates vary across financial institutions. To find out the best NRE rates for yourself, browse the below table to know the interest rates offered by some banks in India:

To open an NRE account, you need to complete the application process and submit some documents for verification. Here is the list of some common documents generally required:  

• 2-3 recent passport-size photographs

• Completed application form

• Copy of your passport as an NRI

• Latest salary slips from your employer

• Visa or residence permit of the country in which you are residing

You also need to meet the eligibility criteria set by the financial institution to open an NRE account. While it varies across banks and NBFCs, here are the general criteria:

• Residential Status: You must be a Non-resident Indian (NRI), a Person of Indian Origin (PIO), or have an Overseas Citizenship of India (OCI)

• Currency of Deposition: You need to make the deposits in a foreign currency

• Power of Attorney: The power of attorney must be with an Indian resident

Like many financial products and services, NRE accounts also come with certain disadvantages. Here are some of them:

• Not Suitable for Earnings in India

You cannot use these accounts to deposit the money that you earn as an NRI in India. Instead, you need to open an NRO account for this purpose. 

• Deposits in Indian Currency

You cannot keep funds in any foreign currency as the funds deposited in NRE accounts are converted to Indian Rupees.