Several Indian banks, including SBI, HDFC Bank, ICICI Bank, Canara Bank, and PNB, have recently announced updates to their fixed deposit interest rates for Non-Resident External (NRE) accounts.
NRE accounts are bank accounts opened by Indians residing abroad, where they can deposit foreign currency that can later be withdrawn in Indian rupees.
NRE accounts come in different types, including individual or joint accounts, savings accounts, current accounts, and fixed deposit accounts. The interest rates for NRE accounts vary among banks, and the minimum tenure for these accounts is one year.
Below are the details of the new fixed deposit interest rates for NRE accounts offered by some government and private banks:
State Bank of India (SBI): SBI is offering interest rates ranging from 6.50% to 7.10% for one to ten-year fixed deposits amounts below two crores, and 6.00% to 6.75% for amounts greater than two crores. These new rates were implemented on February 15, 2023.
HDFC Bank: HDFC Bank is offering interest rates ranging from 6.60% to 7.10% for fixed deposit amounts below two crores, and 7.10% to 7.75% for amounts greater than two crores. These new rates came into effect on February 21, 2023.
Punjab National Bank (PNB): PNB has increased its NRE FD rates from last year's rates of 5.6% to 6.75% to the current rates of 6.5% to 7.25%. These new rates became effective on January 1, 2023.
ICICI Bank: ICICI Bank's fixed deposit rates for NRE accounts range from 6.70% to 7.10%. These rates were applicable from February 24, 2023.
Canara Bank: Canara Bank's fixed interest rates for fixed deposits range from 6.70% to 7.25% for a one to ten-year period. Canara Bank's new rates took effect on April 5, 2023.
The updated NRE FD rates provide competitive interest rates for Indians living abroad who want to invest their foreign currency in fixed deposits in India. It is recommended to compare the interest rates and tenure of various banks before investing.
