PSU banks NRE FD interest rates: SBI vs Bank of Baroda vs Canara Bank vs PNB vs Bank of India
An NRI can deposit his overseas income into an Indian account using an NRE fixed deposit account, which is effectively a term deposit. Thus, the foreign cash is changed into Indian Rupees. This account can be opened by an individual, an NRI, or a close relative of the resident Indian.Note that principal and interest from an NRE FD can be fully repatriated into any bank account in the nation where you are currently residing. In fact, as an NRE FD retains funds in Indian Rupee, exchange rates will be used. However, utilising your money in the currency of your choice has many advantages.
Here are NRE fixed deposit interest rates offered by PSU banks in India like SBI, Bank of Baroda, PNB, Bank of India and Canara Bank.
SBI NRE FD rates
SBI offers interest rates for terms of one year to ten years that range from 6.50 percent to 7.10 percent for amounts below Rs 2 crore. The new rates are applicable from February 15, 2023. No interest is payable if the deposit is withdrawn before one year.
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TenorsBelow Rs.2 CroreRs.2 Crore & above1 year to less than 2 years6.80%6.75%400 Days (AMRIT KALASH)7.10%-2 years to less than 3 years7.00%6.50%3 years to less than 5 years6.50%6.00%5 years to 10 years6.50%6.00%
Bank of Baroda NRE FD rates
Bank of Baroda offers interest rate between 6.75% to 7.25% on tenure from 1 year to 10 years for amounts below Rs 2 crore. The highest rate of 7.25% is offered on Baroda Tiranga Plus Deposit Scheme.
Canara Bank NRE FD rates
Canara Bank offers interest rate between 6.80% to 7.25% on tenures ranging from 1 year to 10 years for amounts below Rs 2crore. The highest interest rate is paid on tenure of 444 days. Note that NRE Term deposits are auto renewed only once as the Non-resident status is to be confirmed.
TenureRate of Interest1 year only.7444 Days7.25Above 1 year to less than 2 years.6.92 years & above to less than 3 years.6.853 years & above to less than 5 years.6.85 years & above to 10 years.6.7
PNB NRE FD rates
PNB offers interest rate between 6.50% to 7.25% on tenures ranging from 1 year to 10 years for amounts below Rs 2crore. The highest interest rate is paid on tenure of 444 days.
Sl. NoPeriodRevised Wef. 01.06.202311 year6.752above 1 year to 443 days6.83444 days7.254444 days to 2 years6.85above 2 year & upto 3 years76above 3 year & upto 5 years6.57above 5 years & upto 10 years
Bank of India NRE FD rates
Bank of India offers interest rate between 6% to 7% on tenures ranging from 1 year to 10 years for amounts below Rs 2crore. The highest interest rate is paid on one year tenure.
MATURITYFOR DEPOSITS OF LESS THAN RS.2 CR. Rate w.e.f 26.05.20231 Year7Above 1 Year to less than 2 Years62 Years to less than 3 Years6.753 Years to less than 5 Years6.55 Years to less than 8 Years68 years & above to 10 Years6
Tax on an NRE FD in India
According to the IndusInd Bank website, “Another feature of an NRE FD that excites several investors is that it is exempt from taxation in India. So, you don’t have to pay any tax on either the interest or the principal component of the FD. Even at the most competitive ROI, you pay zero tax and can fully repatriate the amount to your country of residence!”
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This story originally appeared on: India Times - Author:Faqs of Insurances
