The revised rates are valid up to November 30. Indian Overseas Bank has also revised its interest rates upwards to 9.50 per cent from 9 per cent under NRE term deposits of 3 years and above, effective November 23. For NRE term deposits between one year and less than three years maturity, the interest rate has been revised to 9 per cent, up from 8.75 per cent.

Punjab National Bank has hiked interest rates on select maturities by up to 0.50 per cent effective from November 11. Separately, banks have started to increase NRE deposit rates.

On depositing Rs10 million, the depositor gets an extra nearly Rs1.3 million.Īlthough the minimum ticket size stands at Rs2.5 million, tenures vary between 12 and 60 months. However, if you were to book a Rupee Max deposit for 5-year duration, the return on your deposit can be significantly better, which is per cent the yield comes to 13.5 per cent. The product works on the arbitrage that is currently available between the non-resident external and FCNR deposit rates, with the bank highlighting that there was an opportunity to earn 13 to 14 per cent tax free, guaranteed returns for NRIs.įor example, if you book a non-resident external (NRE) deposit for five-year duration per cent, the deposit will earn a yield of 10.83 per cent pa (the rate/return will change depending upon the prevailing rates) under compounding option. This opportunity to earn better return may not be available at all times.” “The result of this is that you earn FCNR deposit rate and forward premium which can be better than NRE fixed deposit rate. You can do so by booking a foreign currency non-resident (FCNR) deposit and sell its maturity proceeds through a forward contract.

In an email sent to NRI customers, HDFC Bank said: “Depending on the forex market scenario, there could be an opportunity for you to earn better return than NRE fixed deposit rates. A leading Indian bank is offering non-resident Indians (NRIs) guaranteed returns of 13 to 14 per cent on fixed deposits.

Hdfc bank fixed deposit rates for nri