NRIs use NRE accounts to transfer funds from other nations to India. NRE accounts can be opened only by the NRI himself and not through the holder of the power of attorney. You can transfer earnings 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 the bank accounts as well as fixed deposits.
Union Bank of India NRE FD interest rates
The Union Bank of India offers the best interest rates on NRE fixe deposit rates, ranging between 5.75 percent to 6.10 percent for amounts below Rs 2 crore. The tenure starts at one year and can go up to ten years. Banks offer 6.05 percent for three-year to three-year and fourteen-day terms. The bank offers 6.10 percent for tenure ranging from five to ten years.
Canara Bank NRE FD interest rates
Canara Bank offers NRE fixed deposit rates ranging between 5.30 percent to 6 percent for amounts below Rs 2 crore. The tenure starts at one year and can go up to ten years. The bank offers a 6% interest rate on terms of one year to less than two years.
According to the Canara Bank website, “Overdue NRE deposits will be paid interest as applicable to savings accounts from the date of maturity till the date of payment/re-investment.”
PNB NRE FD interest rates
For amounts less than Rs 2 crore, PNB offers NRE fixed deposit rates ranging from 5.55 percent to 6 percent. The tenure starts from one year and up to ten years. The bank offers 6% interest on terms of two years or up to three years, as well as terms of 1111 days.