NRE FD rates 2026 range from about 5.85% to 7.50% a year across 26 banks, with Saraswat Co-operative Bank at 7.15% for one year and DCB Bank, City Union Bank and Tamilnad Mercantile Bank above 6.5% on shorter tenures. SBI pays 6.25% for one year. Below are bank-wise NRE rates, FCNR dollar deposit rates, and how NRO deposits differ.
NRE FD Rates 2026: Bank-wise Comparison
NRE fixed deposits are held in rupees, so you carry exchange-rate risk, but interest is tax-free in India and fully repatriable. Rates below apply to deposits under Rs 3 crore.
| Bank | 1 year | Over 1 to 3 years | Over 3 to 5 years | Over 5 to 10 years |
|---|---|---|---|---|
| Union Bank of India | 6.20% | 6.10% to 6.65% | 6.00% | 6.00% |
| Punjab National Bank | 6.25% | 6.30% to 6.60% | 6.35% | 6.00% |
| Punjab and Sind Bank | 5.85% | 5.60% to 5.95% | 5.85% | Not offered |
| IDBI Bank | 6.20% | 6.25% to 6.50% | 6.35% | 5.90% to 5.95% |
| Canara Bank | 6.20% | 5.50% to 6.20% | 5.00% | 5.00% |
| Indian Overseas Bank | 6.50% | 6.40% to 6.60% | 6.10% | 6.10% |
| UCO Bank | 6.10% | 6.00% to 6.45% | 6.00% | 6.00% |
| Bank of India | 6.25% | 6.30% to 6.60% | 6.25% | 6.00% |
| Bank of Baroda | 6.30% | 6.30% | 6.35% | 6.05% |
| Indian Bank | 6.10% | 6.15% to 6.20% | 6.05% | 6.00% |
| State Bank of India | 6.25% | 6.15% to 6.25% | 6.00% | 6.05% |
| Bank of Maharashtra | 6.40% | 5.25% to 6.15% | 5.00% | 5.00% |
| Karur Vysya Bank | 6.55% | 6.55% | 6.55% | 6.25% |
| DCB Bank | 6.90% | 6.90% to 7.50% | 7.00% to 7.10% | 7.00% |
| South Indian Bank | 6.25% | 5.85% to 6.80% | 6.35% | 5.70% to 6.00% |
| City Union Bank | 6.65% | 6.50% to 7.25% | 6.25% | 6.25% |
| Federal Bank | 6.25% | 6.40% to 6.65% | 6.50% to 6.70% | 6.40% |
| Axis Bank | 6.25% | 6.25% to 6.50% | 6.50% | 6.50% |
| Tamilnad Mercantile Bank | 6.80% | 6.60% to 7.25% | 6.70% | 6.70% |
| Kotak Mahindra Bank | 6.35% | 6.45% to 6.80% | 6.40% | 6.25% |
| J&K Bank | 6.55% | 6.60% to 6.75% | 6.80% | 6.85% |
| Karnataka Bank | 6.50% | 6.15% to 7.00% | 6.15% | 5.50% |
| Dhanlaxmi Bank | 6.25% | 6.25% to 6.50% | 6.50% | 6.60% |
| Thane Janata Sahakari Bank | 6.75% | 6.75% to 7.00% | 6.65% | 6.65% |
| Saraswat Co-operative Bank | 7.15% | 7.00% to 7.50% | 6.75% | 6.75% |
| Abhyudaya Co-operative Bank | 6.15% | 6.35% to 6.55% | 6.15% | 5.90% |
Source: BankBazaar NRE FD rate table, rates updated 19 August 2026 (page checked 7 October 2026). These rates are before the RBI repo rate hike to 5.50% on 7 October 2026, so expect upward revisions at many banks. Policybazaar publishes a different snapshot that varies by a few basis points for some banks, such as Bank of Baroda and Canara Bank, so confirm the live rate on the bank NRI portal before booking. Banks not listed here (for example Bandhan Bank, RBL Bank, IDFC FIRST Bank, HDFC Bank and ICICI Bank) did not carry a dated NRE row in this source; see our best FD rates page for their domestic slabs, which NRE rates generally track.
FCNR Deposit Rates 2026: USD Deposits by Bank
An FCNR (B) deposit is held in a foreign currency, so there is no conversion risk, and tenures run from 1 to 5 years. The 1-to-2-year and 5-year USD rates below show how widely banks differ.
| Bank | USD, 1 to under 2 years | USD, 5 years | Effective date |
|---|---|---|---|
| State Bank of India | 4.40% | 3.05% | 15 Jul 2026 |
| HDFC Bank | 3.50% | 6.00% | Booked 10 Jun to 30 Sep 2026 |
| ICICI Bank | 3.85% | 6.00% | 29 Jul 2026 |
| Axis Bank | 4.00% | 6.00% | 29 Jul 2026 |
| Bank of Baroda | 5.00% | 3.05% | 13 Jul 2026 |
| IDFC FIRST Bank | 4.50% | 6.75% | 16 Jun 2026 |
| Canara Bank | 4.95% | 6.50% | 11 Jun 2026 |
| Yes Bank | 4.50% | 6.60% | 8 Jul 2026 |
| Kotak Mahindra Bank | 4.40% | 6.00% | 20 Jul 2026 |
| Federal Bank | 4.00% | 6.25% | 16 Jul 2026 |
| IndusInd Bank | 3.90% | 6.75% | 3 Jul 2026 |
| South Indian Bank | 4.00% | 6.50% (up to USD 5 lakh), 7.00% above | 25 Jun 2026 |
| Bank of Maharashtra | 5.00% | 6.60% | 26 Jun 2026 |
| Indian Overseas Bank | 4.50% | 3.15% | 15 Jun 2026 |
| IDBI Bank | 4.55% | 3.15% | 1 Jul 2026 |
Source: Policybazaar FCNR deposit rates page, using each bank effective date shown above (June to July 2026). Amount slabs apply at some banks; the rate shown is for the smaller deposit band unless stated. Rates for GBP, EUR, AUD and CAD differ and are on each bank NRI page.
NRE vs NRO vs FCNR Deposits Compared
| Feature | NRE FD | NRO FD | FCNR (B) deposit |
|---|---|---|---|
| Currency held | Indian rupees | Indian rupees | Foreign currency (USD, GBP, EUR and others) |
| Source of funds | Foreign earnings | Income earned in India | Foreign earnings |
| Interest tax in India | Tax-free, no TDS | Taxable, TDS applies | Tax-free |
| Repatriation | Full principal and interest | Up to USD 1 million a year | Full principal and interest |
| Exchange rate risk | Yes, on rupee value | Yes | No |
| Tenure | 1 to 10 years | Similar to resident FDs | 1 to 5 years |
| Senior citizen extra rate | Not applicable | Bank policy varies | Not applicable |
All three are insured by DICGC up to Rs 5 lakh per depositor per bank. See the DICGC site and the RBI for official rules.
NRO FD Rates and Tax
NRO deposits usually earn the same rate as the bank resident FD, so use our bank-wise FD rates, senior citizen FD list and post office vs bank comparison. Interest is taxable in India with TDS, so after-tax returns can trail NRE deposits by a wide margin. NRE savings rates are in our savings account rates comparison.
How to Choose Between NRE, NRO and FCNR
Choose NRE if you want tax-free rupee returns and plan to repatriate or spend in India. Choose FCNR if you fear rupee depreciation and prefer to keep dollars or pounds. Use NRO only for money earned in India, such as rent or dividends. Estimate maturity with the FD calculator, and read how the 7 October repo hike affects deposits in our RBI MPC explainer.
Frequently Asked Questions
What is the difference between NRE, NRO and FCNR deposits?
An NRE deposit holds foreign earnings converted to rupees, with tax-free interest and full repatriation. An NRO deposit holds income earned in India, is taxable and has repatriation limits. An FCNR deposit is held in a foreign currency such as USD, with no exchange rate risk and tax-free interest in India.
Which bank gives the highest NRE FD rate?
In the 19 August 2026 table, Saraswat Co-operative Bank leads at 7.15% for one year and up to 7.50% for 1 to 3 years, followed by City Union Bank and Tamilnad Mercantile Bank at up to 7.25%. Among large banks, DCB Bank and Kotak Mahindra Bank are higher than SBI.
Is NRE FD interest taxable in India?
No. Interest on an NRE deposit is exempt from tax in India for a person resident outside India under FEMA, and no TDS is deducted. Tax rules in your country of residence may still apply.
Is NRO FD interest taxable?
Yes. NRO interest is taxable in India and TDS is deducted, at 30% plus applicable surcharge and cess unless a lower rate applies under a tax treaty. Rates on NRO deposits generally follow the bank domestic FD rates in our best FD rates page.
Why do FCNR 3 to 5 year rates look so much higher than 1 to 2 year rates?
FCNR rates follow foreign benchmark rates plus a bank spread, and each bank prices its tenures differently. In the June to July 2026 tables, several banks quote about 6.00% to 7.00% for 3 to 5 years but 3.50% to 5.00% for 1 to 2 years, while SBI and Bank of Baroda stay near 3.05%. Always compare tenure by tenure.
Do NRE deposits get senior citizen rates?
No. The extra rate for senior citizens does not apply to NRE deposits.