NRE Fixed Deposit Account: High Returns, Tax Benefits & Easy Repatriation

NRE Fixed Deposits are popular among NRI (Non-Resident Indian) and PIO (Person of Indian Origin) investors looking for high returns. Investors can open an NRE Fixed Deposit in Indian currency through their NRE Account and enjoy attractive interest rates along with a range of other benefits. 

Prominent Features of NRE Fixed Deposit Accounts:

• Funds can be deposited in Indian currency
  
  

• Returns can be calculated using an NRE FD Calculator
  
  

• Auto-renewal facility is available; the maturity amount gets reinvested automatically
  
  

• Loans can be availed against NRE Fixed Deposits
  
  

• A nomination facility is available
  
  

• Joint NRE FD Accounts can be opened with another NRI
  
  

• Premature withdrawals are allowed in case of financial emergencies

Benefits of NRE Fixed Deposits

Repatriate Funds Easily
You can freely repatriate both the principal and the interest earned from your NRE FD to your overseas account. Currency conversion rates will apply.

Enjoy Guaranteed Returns
NRE FDs offer stable, high returns with quarterly compounding. Interest rates often exceed 5%, depending on the tenure and bank.

Pay Zero Tax
NRE Fixed Deposits are exempt from Indian income tax, wealth tax, and gift tax on both the principal and interest earned.

Choose a Flexible Tenure
You can choose an NRE FD tenure ranging from 1 year to 10 years. Longer tenures generally offer higher interest rates.

Documents Required to Open NRE Fixed Deposits

NRIs and PIOs can easily open an NRE FD Account by submitting the following documents:

For NRIs:

• Form 60 or PAN Card
  
  

• Valid passport copy
  
  

• Recent passport-size photograph
  
  

• Proof of NRI status (Employment/Residence Visa or Work/Residence Permit)
  
  

• Indian and overseas address proof
  
  
  

For PIOs:

• Form 60 or PAN Card
  
  

• Valid passport copy
  
  

• Recent passport-size photograph
  
  

• Proof of PIO status (valid OCI or PIO card)
  
  

• Indian and overseas address proof
  
  

• Duly filled and signed PIO declaration form
  
  
  

Documents can be scanned and uploaded online via the bank’s portal. NRE FDs are ideal for growing your foreign income in India while enjoying tax-free interest and full repatriation benefits.