When you deposit money in NRE account, it gets converted into Indian Rupee (INR). This means that you can deposit money in any foreign currency such as US Dollars and withdraw it in Indian Rupees. Non-Resident Indian (NRI) can choose from a variety of NRE accounts for depositing funds. These include savings, current, recurring deposit or fixed deposit accounts. NRE account can be opened singly or as a joint account.

The interest rates offered on NRE Fixed Deposits vary from bank to bank and deposit amount. At the same time, the investment period starts from at least 1 year in most of the banks. Here is a comparison on the basis of 2023 interest rates on NRE FDs of banks like SBI, HDFC Bank, ICICI Bank and PNB. Let us know which bank is giving the chance to get the highest returns on NRE FD.

SBI NRE FD Interest Rates

SBI offers interest rates ranging from 6.50 per cent to 7.10 per cent for tenures ranging from one year to ten years for amounts less than Rs 2 crore. The new interest rates are applicable from 15 February 2023.

HDFC Bank NRE FD Interest Rates

HDFC Bank offers interest rates ranging from 6.60 percent to 7.10 percent for deposits below Rs 2 crore to ordinary citizens. Interest Rates Rates are effective from 21 February 2023 and the minimum tenure for NRE deposits is 1 year.

ICICI Bank FD Interest Rates

ICICI Bank offers an interest rate of 6.70% to 7.10% for NRE FDs with tenures ranging from 1 year to 10 years. The new interest rates are effective from 24 February 2023. The bank charges an interest rate of 1 per cent on withdrawal before FD maturity.

PNB NRE Fixed Deposit Interest Rates

Punjab National Bank offers interest rates on NRE FDs ranging from 6.30 percent to 7.25 percent. The investment tenure ranges from one year and up to ten years. The interest rates are effective from January 1, 2023.

Currency volatility risk

NRE accounts are subject to fluctuating exchange rate risk. This means that if you deposit money in US Dollars on 1st June and withdraw it in Indian Rupees on 30th June, you may get back more or less than what you initially invested. This happens due to currency fluctuations.

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