NRIs use NRE accounts to transfer funds from other countries to India. NRE accounts can be opened only by NRIs and not through a Power of Attorney holder. You can transfer income in foreign currencies to your NRE account and withdraw money in rupees to cover costs in India.

NRE accounts enjoy tax exemption in respect of interest income on bank accounts as well as fixed deposits.

Union Bank Of India NRE FD Interest Rates

Union Bank of India offers the best interest rate on NRE fixed deposit rates between 5.75 per cent to 6.10 per cent for amounts below Rs 2 crore. The tenure starts from one year and can go up to ten years. Banks offer 6.05 per cent for terms of three years to three years and fourteen days. The bank offers 6.10 per cent for a tenure of five to ten years.

Canara Bank NRE FD Interest Rates

Canara Bank proposals NRE Fixed Deposit Rates between 5.30 per cent to 6 per cent for amounts less than Rs 2 crore. The tenure starts from one year and can go up to ten years. The bank offers 6% interest rate for tenures ranging from one year to less than two years.

According to the Canara Bank website, “The interest on overdue NRE deposits will be paid from the date of maturity till the date of repayment/reinvestment as applicable to savings accounts.”

PNB NRE FD Interest Rates

For amounts less than Rs 2 crore, PNB offers NRE fixed deposit rates ranging from 5.55 per cent to 6 per cent. The tenure starts from one year to ten years. The bank offers 6% interest on terms of two years or up to three years as well as 1111 days.