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Non-resident Indians (NRIs) could benefit from these Fixed Deposits (FDs) as they offer competitive interest rates, tax exemptions, and secure returns, helping individuals grow their savings while living abroad.
Last updated on: January 30, 2026
NRI FDs are specially designed for Indians living abroad who wish to grow their savings in India. These deposits offer flexible tenures and come with a wide selection of features that cater to an NRI investor's financial needs. NRIs can choose between Non-resident External (NRE), Non-resident Ordinary (NRO), and Foreign Currency Non-resident (FCNR) accounts based on their financial suitability.
The interest rates for NRI FDs can vary based on the bank or NBFC, tenure, and amount deposited.
| Banks | Tenure | Interest Rates (% p.a.) |
|---|---|---|
SBI |
7 days – 10 years |
3.50% - 7.10% |
HDFC Bank |
7 days – 10 years |
3.00% - 7.40% |
Axis Bank |
7 days – 10 years |
3.00% - 7.10% |
Note: The interest rates mentioned here are applicable to deposits under ₹3 Crores. They are subject to change at the discretion of the bank.
| Banks | Tenure | Interest Rates (% p.a.) |
|---|---|---|
Bajaj Finance |
1 year – 3 years |
6.41% - 7.30% |
SBI |
1 year – 10 years |
6.50% - 7.25% |
HDFC Bank |
1 year – 10 years |
6.60% - 7.40% |
Axis Bank |
1 year – 10 years |
6.70% - 7.10% |
Note: The interest rates mentioned here are for deposits under ₹5 Crores. They are subject to change at the discretion of the bank or NBFC.
| Banks | Tenure | Interest Rates (% p.a.) |
|---|---|---|
SBI |
1 year - 5 years |
3.90% - 5.70% |
Note: The interest rates mentioned are subject to change at the discretion of the financial institution.
NRIs can easily renew their FDs upon maturity, often with the option of auto-renewal. This process allows for continuous growth of investments without the need for manual intervention.
FDs issued by banks in India are considered a low-risk investment due to their stability and the FD insurance coverage provided to depositors.
They are ideal for NRIs who want to safeguard their earnings against stock market fluctuations and maintain a stable investment.
Some banks offer higher interest rates for senior citizen NRIs, providing an added advantage for those above 60 years.
NRI fixed deposits can be held in various currencies, such as INR, USD, EUR, and GBP, through Foreign Currency Non-resident (FCNR) fixed deposits.
This flexibility allows NRIs to invest in their preferred currency without worrying about exchange rate fluctuations.
Depending on their financial needs and income sources, NRIs can choose from the following types of fixed deposits in India:
NRIs looking to invest their foreign earnings in Indian FDs need to open an NRE account. The interest earned on NRE FDs is tax-free in India, and both the interest and principal can be fully repatriated. This makes NRE FDs a suitable option for NRIs planning to eventually return to India.
NRIs can use an NRO account to invest income earned from sources within India, such as rent or dividends, into fixed deposits. The interest earned on these NRO FDs is subject to taxes in India, and the funds can be repatriated, though only up to a specified limit.
An FCNR account allows NRIs to hold fixed deposits in foreign currencies, protecting their investments from exchange rate fluctuations. The interest earned on these FDs is tax-free in India, and both the principal and interest amounts are fully repatriable.
To open an NRI FD, applicants must meet certain eligibility criteria. While these may vary across banks and NBFCs, here are some common parameters:
The applicant must be a Non-Resident Indian (NRI), Person of Indian Origin (PIO), or Overseas Citizen of India (OCI)
A valid NRE, NRO, or FCNR account with an Indian bank is required
A valid passport and visa must be provided
Proof of address outside India is necessary, such a utility bill, bank statement, or rental agreement
Aside from the eligibility requirements, NRIs may have to keep the following documents handy:
Recent passport-sized photographs are required
The NRI FD application form must be completed
Opening an NRI FD account is a straightforward process. Here’s what you need to do:
Start by selecting a bank or NBFC that offers favourable NRI FD rates and features that suit your needs
Fill out the NRI FD application form on the financial institution’s website or at any branch
Submit necessary documents such as your passport, visa, proof of overseas residence, and a recent photograph
Deposit the desired amount into your NRE, NRO, or FCNR account to fund the FD
Select the type of FD, the amount, and the tenure
Once chosen, you can start your investment and begin earning returns.
Other FD Related Pages |
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Yes, NRIs can avoid paying double tax under the Double Taxation Avoidance Agreement (DTAA) that India has with several countries. To benefit from DTAA, NRIs need to provide tax residency certificates and other required documentation to the relevant tax authorities.
Yes, having a Permanent Account Number (PAN) is mandatory for opening an NRI account in India.
Yes, TDS is applicable on NRO FDs but not on NRE and FCNR FDs.
NRIs can fund their FDs through direct remittance while abroad, transfers from NRE/NRO accounts, or using foreign currency earnings.
Yes, NRIs can avail of loans against their FDs, subject to the bank’s terms and conditions.
Yes, TDS applies to NRO FDs, but NRE and FCNR FDs are exempt from TDS.
Yes, NRIs can nominate a person for their fixed deposits.
Interest rates for NRI FDs can be higher or similar to regular FDs, depending on the bank or NBFC and the type of deposit.
Yes, most banks offer online facilities to manage NRI FD accounts.
If an NRI returns to India permanently, their NRI FD may be converted to a resident FD. The bank or NBFC should be informed of the change in residency status, and the interest rates and tax treatments will be adjusted according to resident deposit rules in India.
Yes, under DTAA, NRIs may be eligible for reduced tax rates on interest earned.
Contact your bank or NBFC’s customer service for detailed information and support regarding NRI fixed deposits.
Yes, NRIs can maintain FDs in India through NRE, NRO, and FCNR accounts.
To avoid TDS on NRI FDs, you could invest in NRE or FCNR accounts, as these are exempt from TDS.
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