NRE RD Interest Rates (as on 22 Feb 2024)
About NRE RD Account
A Non-Resident External Recurring Deposit (NRE RD) can be opened by an Individual NRI (other than Individuals of Bangladesh/Pakistan nationality/ownership). This is used for a regular and systematic investment by depositing small amount every month from one's foreign income. Minimum period of RD is 1 year (in multiples of 3 months thereafter) & the maximum period of RD is 10 years. Amount in NRE RD is denominated in Indian currency i.e. Rupees. Know the steps to open NRE RD Account.
Bank NRE recurring deposit Interest Rates (as on 22 Feb 2024). The interest rates will be the same as the rate applicable for NRE Fixed Deposit. The interest on deposits is compounded quarterly at the applicable rates. Interest is paid only on maturity. You can calculate the interest earned on NRE RD account using NRE RD Interest Calculator.
The NRE interest rates on recurring deposit depend on which category for example 1 year, 2 year, 3 year ... 5+ year, you fall under and your choice between different banks. To see all recurring deposit interest rates for selected bank, click on "All RD Rates" button listed below.
Repatriation & Taxation
Principal & interest are fully repatriable. Interest earned is exempted from Tax in India hence the depositor need not be worried about taxation in India.
Who Can Deposit Money in NRE Fixed Deposit Account?
A Non-Resident External Fixed Deposit can be opened by an Individual NRI (other than Individuals of Bangladesh/Pakistan nationality/ownership). The major objective of opening this account is to invest his/ her income earned in India to get higher returns. This account is denominated in Indian Rupees. Principal as well as interest earned on the principal are fully repatriable. It can be opened jointly with other NRI(s). One can get the facility of automatic renewal of his/ her deposits. Know the steps to open NRE FD Account.
Minimum tenure of investment is usually 1 year and the maximum tenure is 10 years under NRE Fixed Deposit Accounts. With regard to taxation, the interest earned is fully exempted in India and the depositor is not required to pay any income tax on that.
Here an important point to note is that the additional rate of interest of 0.50% p.a. payable on fixed deposits to senior citizens does not apply to NRE Fixed Deposits. You can calculate the interest earned on NRE FD account using NRE FD Interest Calculator.
Premature Withdrawal of NRE Fixed Deposit Account
- Before completion of 1 year: No interest
- After completion of 1 year: Interest will be calculated at the rate applicable for the period for which the deposit was held with the Bank or contracted rate of the deposit, whichever is lower, plus penalty of 1%