NRE fixed deposit rates 2026: These banks offer up to 8.05% interest to NRIs
NRE fixed deposits can offer NRIs a combination of fixed returns, full repatriation and tax-free interest in India. Several banks are offering 7% or more on select NRE FD tenures, with DCB Bank offering up to 8.05% for deposits of more than one year to three years.
- Aug 18, 2026,
- Updated Aug 18, 2026 6:30 AM IST
Non-Resident Indians (NRIs) looking to park their overseas earnings in India can consider Non-Resident External (NRE) fixed deposits, which combine fixed returns with tax benefits. Several banks are currently offering interest rates of 7% or more on select NRE deposit tenures, with rates going as high as 8.05% for certain deposits below ₹3 crore.
What is an NRE fixed deposit?
An NRE fixed deposit is a term deposit opened through a Non-Resident External account. The deposit is maintained in Indian rupees, while the money is sourced from overseas earnings remitted to India. NRE accounts and deposits can be opened by NRIs and Persons of Indian Origin (PIOs).
One of the key features of NRE deposits is that both the principal and interest are fully repatriable. Interest earned on NRE deposits is also tax-free in India for eligible NRIs, making them particularly attractive for those who want to maintain rupee deposits while keeping the option of transferring funds overseas.
However, since the deposit is denominated in Indian rupees, the value of returns in an NRI's home currency can be affected by changes in the rupee's exchange rate.
Which banks offer the highest NRE FD rates?
Among the banks listed, DCB Bank offers the highest rate of 8.05% for NRE deposits with a tenure of more than one year and up to three years. Its rates are 7.10% for one year, 7.40% for more than three years to five years and 7.25% for more than five years to 10 years.
MUST READ: HDFC Bank, ICICI Bank raise FCNR(B) deposit rates to 6.25%: What it means for NRI investors
IndusInd Bank offers 7.75% for one-year NRE deposits and rates ranging from 7.25% to 7.99% for deposits of more than one year and up to three years. It offers 7.25% for three to five years and 7% for five to 10 years.
Karnataka Bank and Thane Janata Sahakari Bank offer 7.50% for one-year deposits, while Saraswat Co-operative Bank offers 7.15%. Karur Vysya Bank, City Union Bank, Federal Bank and Tamilnad Mercantile Bank offer rates of 7% for one-year deposits.
For the one-to-three-year category, Federal Bank offers rates between 7.15% and 7.50%, while Saraswat Co-operative Bank offers 7% to 7.50%. Several other banks, including Union Bank of India, Canara Bank, Bank of Baroda and Kotak Mahindra Bank, offer rates of 7% or more for certain tenures.
| Bank | 1 year | >1 to 3 years | >3 to 5 years | >5 to 10 years |
|---|
| DCB Bank | 7.10% | 7.10%-8.05% | 7.40% | 7.25% |
| IndusInd Bank | 7.75% | 7.25%-7.99% | 7.25% | 7.00% |
| Karnataka Bank | 7.50% | 6.75% | — | — |
| Thane Janata Sahakari Bank | 7.50% | 6.50%-7.50% | 6.25% | 6.25% |
| Federal Bank | 7.00% | 7.15%-7.50% | 7.10%-7.40% | 6.60% |
| Karur Vysya Bank | 7.00% | 7.00% | 7.00% | 6.25% |
| Union Bank of India | 6.80% | 6.40%-7.30% | 6.50% | 6.50% |
| Canara Bank | 6.80% | 6.85%-7.30% | 7.40% | 6.70% |
| Bank of Baroda | 6.80% | 6.75%-7.10% | 6.75% | 6.45% |
| SBI | 6.80% | 6.80% | 6.50% | 6.25% |
| Axis Bank | 6.70% | 6.70%-7.10% | 7.10% | 7.00% |
| Kotak Mahindra Bank | 7.10% | 7.10%-7.40% | 7.00% | 6.20% |
MUST READ: NRI investment in India gets a GIFT City route: What the Wealth Company’s new fund offers
NRE vs NRO deposits
NRE deposits are generally suited to NRIs looking to hold and use overseas earnings in India. NRO deposits, meanwhile, are designed for income earned in India, such as rent, dividends, pension or sale proceeds. Unlike NRE interest, NRO deposit interest is taxable in India, while repatriation is subject to applicable rules and limits.
For NRIs, the choice between NRE and NRO deposits therefore depends on the source of funds, tax treatment, repatriation requirements, tenure and the interest rate offered by the bank.
Non-Resident Indians (NRIs) looking to park their overseas earnings in India can consider Non-Resident External (NRE) fixed deposits, which combine fixed returns with tax benefits. Several banks are currently offering interest rates of 7% or more on select NRE deposit tenures, with rates going as high as 8.05% for certain deposits below ₹3 crore.
What is an NRE fixed deposit?
An NRE fixed deposit is a term deposit opened through a Non-Resident External account. The deposit is maintained in Indian rupees, while the money is sourced from overseas earnings remitted to India. NRE accounts and deposits can be opened by NRIs and Persons of Indian Origin (PIOs).
One of the key features of NRE deposits is that both the principal and interest are fully repatriable. Interest earned on NRE deposits is also tax-free in India for eligible NRIs, making them particularly attractive for those who want to maintain rupee deposits while keeping the option of transferring funds overseas.
However, since the deposit is denominated in Indian rupees, the value of returns in an NRI's home currency can be affected by changes in the rupee's exchange rate.
Which banks offer the highest NRE FD rates?
Among the banks listed, DCB Bank offers the highest rate of 8.05% for NRE deposits with a tenure of more than one year and up to three years. Its rates are 7.10% for one year, 7.40% for more than three years to five years and 7.25% for more than five years to 10 years.
MUST READ: HDFC Bank, ICICI Bank raise FCNR(B) deposit rates to 6.25%: What it means for NRI investors
IndusInd Bank offers 7.75% for one-year NRE deposits and rates ranging from 7.25% to 7.99% for deposits of more than one year and up to three years. It offers 7.25% for three to five years and 7% for five to 10 years.
Karnataka Bank and Thane Janata Sahakari Bank offer 7.50% for one-year deposits, while Saraswat Co-operative Bank offers 7.15%. Karur Vysya Bank, City Union Bank, Federal Bank and Tamilnad Mercantile Bank offer rates of 7% for one-year deposits.
For the one-to-three-year category, Federal Bank offers rates between 7.15% and 7.50%, while Saraswat Co-operative Bank offers 7% to 7.50%. Several other banks, including Union Bank of India, Canara Bank, Bank of Baroda and Kotak Mahindra Bank, offer rates of 7% or more for certain tenures.
| Bank | 1 year | >1 to 3 years | >3 to 5 years | >5 to 10 years |
|---|
| DCB Bank | 7.10% | 7.10%-8.05% | 7.40% | 7.25% |
| IndusInd Bank | 7.75% | 7.25%-7.99% | 7.25% | 7.00% |
| Karnataka Bank | 7.50% | 6.75% | — | — |
| Thane Janata Sahakari Bank | 7.50% | 6.50%-7.50% | 6.25% | 6.25% |
| Federal Bank | 7.00% | 7.15%-7.50% | 7.10%-7.40% | 6.60% |
| Karur Vysya Bank | 7.00% | 7.00% | 7.00% | 6.25% |
| Union Bank of India | 6.80% | 6.40%-7.30% | 6.50% | 6.50% |
| Canara Bank | 6.80% | 6.85%-7.30% | 7.40% | 6.70% |
| Bank of Baroda | 6.80% | 6.75%-7.10% | 6.75% | 6.45% |
| SBI | 6.80% | 6.80% | 6.50% | 6.25% |
| Axis Bank | 6.70% | 6.70%-7.10% | 7.10% | 7.00% |
| Kotak Mahindra Bank | 7.10% | 7.10%-7.40% | 7.00% | 6.20% |
MUST READ: NRI investment in India gets a GIFT City route: What the Wealth Company’s new fund offers
NRE vs NRO deposits
NRE deposits are generally suited to NRIs looking to hold and use overseas earnings in India. NRO deposits, meanwhile, are designed for income earned in India, such as rent, dividends, pension or sale proceeds. Unlike NRE interest, NRO deposit interest is taxable in India, while repatriation is subject to applicable rules and limits.
For NRIs, the choice between NRE and NRO deposits therefore depends on the source of funds, tax treatment, repatriation requirements, tenure and the interest rate offered by the bank.