Know about the Best NRE Fixed Deposit Interest Rates in 2020

NRI (Non-Resident Indians) are keen to find safe and higher returns for their hard earned money. It is a fact that emerging economies like India have high interest rates when compared to developed countries. A basic question constant with NRI financial investment is how they can invest through Fixed Deposits (FDs) in India.



Fixed Deposit is the favourite investment choice in the country. Non Resident External (NRE) deposits gaining a lot of popularity among NRIs.

NRE fixed deposits are almost the same as regular term deposits. The account opening process is done virtually and it is tax-free

NRE Deposits: Interest Rates

The interest rates on NRE deposits depends on the duration of the deposits. The rates vary from types of banks. Please note that company deposits are offering the highest interest rates to NRIs. The category wise range is given below:

Category

NRE FD Interest Rates

Public Bank

4.00%-5.5%

Private bank

4.50%-6%

Small Finance Bank

5%-7%

Company FDs

5.50%-7.35%

As an NRI you should look at company FDs like Bajaj Finance offering highest FD interest rate of 7.10% to new customers and 7.20% to existing ones for a tenor of 12 to 36 months. Senior citizens get an additional interest rate benefit of 0.25% over and above existing FD interest rates.

The table below shows NRI FD interest rates with Bajaj Finance FD, one of the highest paying corporate FDs in India:

 Tenure in Months


Minimum deposit (in Rs.)

Cumulative

Non-Cumulative

Monthly

Quarterly

Half Yearly

Annual

12 – 23

25,000

6.90%

6.69%

6.73%

6.79%

6.90%

24 – 35

7.00%

6.79%

6.82%

6.88%

7.00%

36

7.10%

6.88%

6.92%

6.98%

7.10%


Eligibility for NRE Fixed Deposit:


The eligibility criteria are as follows:

  • The person should be of Indian origin and Non-Resident of India.
  • NRE account is mandatory.
Documents Required:The documents required to open NRE Deposits are:
  • Work-visa (Valid)
  • Address Id
  • Passport

Features:

The features of NRE deposits are listed below:

  • The tenor for deposit is flexible. Ranging from 1 year to 10 years for banks and 3 to 5 years for company deposits.
  • Loan and Overdraft facility can be availed against NRE deposits with banks only.
  • The fund can be deposited in India-Rupee into your NRO account.
  • The funds maximum and minimum range is decided by the financier.

Advantages of NRI deposits:

The advantages of NRI deposits are as follows:
  • If you invest in Bajaj Finance NRI FD, you can avail tax deductions under Double Tax Avoidance Agreement (DTAA) along with high fixed deposit interest rates up to 7.35%.
  • The depositor's account can be easily closed prematurely as well.
  • NRE deposits provide the nomination facility as well.
  • With Bajaj Finance FD, you are assured of the safety of your investment as it has received ratings of FAAA/Stable from CRISIL and MAAA/Stable from ICRA.
  • If you renew Bajaj Finance NRI FD, you can earn an additional interest rate benefit of 0.10.
  • Bajaj Finance NRI FD also allows investing in multiple deposits using a single payment cheque with its multi-deposit feature.
Important points to remember:
  • There is no loan available on NRE FDs
  • In a company deposit - which is paying the highest rate - you can invest only through the NRO (Non-resident ordinary) account which is in INR
  • A minimum penalty amount is to be paid in case of premature withdrawal of NRE term deposits.
Investment in NRI FDs can earn you high interest rate with additional interest rate benefit of 0.25% for senior citizens with financiers like Bajaj Finance. The interest rates do not depend upon the fluctuations of the market. The principal and interest get automatically renewed on maturity and you can earn an additional 0.10% interest rate benefit upon auto-renewal.

The option for premature withdrawal of funds is also available with NRI FD. Therefore, it is always advisable to invest in NRE Fixed deposits as it provides good returns and generates wealth. The principal amount will remain safe and secure with Bajaj Finance NRI FD as it has received high stability ratings of FAAA/Stable by CRISIL and MAAA/Stable by ICRA.

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