Best Bank NRE Interest Rates

by Nikita Verma on January 6, 2012

in NRI

RBI liberalized the NRE interest rates last month, and allowed banks to set their own interest rates like they did for the savings bank account interest rates.

Prior to this, it made no sense to open a NRE account for the interest rate because you got a lot higher rate in the NRO account even after tax deduction.

But with this change, now you can get extremely high rates of interest in the NRE account and the interest in this account is tax free as well!

The recent rupee fall contributed to this move, and these are very good rates for NRIs who live in western countries with low interest rates and don’t have a lot of safe options to put their money at work.

I’ve made a list of the banks with the best NRE interest rates that I could spot along with the tenure, and if you see any banks missing from this list then please let me know and I’ll update this list.

Here are a couple of other posts that are related and might be useful as well – the first one explains the difference between a NRO and a NRE account and the second one talks about how you can open a NRE or NRO account while you are abroad.

Now here is the list.

S.No. Bank Tenure

Interest Rate

1 Karur Vysya Bank 1 year to 2 years

10.00%

2 City Union Bank 1 year and less than 3 years

10.00%

3 Tamil Nadu Mercantile Bank 1 year – less than 2 years

10.00%

4 Karnataka Bank 1 year to less than 2 years

9.75%

5 Dena Bank  1 year only

9.60%

6 State Bank of Travancore 1 year to less than 2 years

9.50%

7 South Indian Bank 1 year to 2 years

9.50%

8 Corporation Bank 1 year to less than 2 years

9.50%

9 IDBI Bank 1 year 1 day – 10 years

9.50%

10 J&K Bank 2 years to less than 5 years

9.50%

11 Federal Bank  1 year only

9.50%

12 Indian Bank 1 year to less than 3 years

9.50%

13 Andhra Bank 1 year

9.40%

14 Central Bank of India 1 year to less than 2 years

9.25%

15 Vijaya Bank 1 year to less than 2 years

9.25%

16 Bank of Baroda 1 year to less than 2 years

9.25%

17 ICICI Bank 390 / 590 / 990 days

9.25%

18 HDFC Bank 1 year 16 days

9.25%

19 SBI
1 year – 10 years

9.25%

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