Best NRE FD Rates in 2025: If you are an NRI (Non-Resident Indian) and want a safe way to keep your money in India, NRE fixed deposits are a great choice. You can deposit your foreign income in Indian rupees, earn interest, and take the money back whenever you want. The best part is that the interest you earn on NRE FDs is tax-free in India. You can also repatriate (send back) both the money you invested and the interest without any restrictions.
According to BankBazaar data as of October 28, 2025, the list below shows the banks offering the best one-year FD rates for deposits up to Rs 1 crore and how much Rs 1 lakh would grow after a year.
RBI’s new rule: SBI, HDFC, Axis, Kotak, and other banks to change website domains soon
Top NRE FD Rates in 2025
1. IndusInd Bank
IndusInd Bank is giving one of the best returns right now. IndusInd Bank offers a 7 percent interest rate on NRE fixed deposits with a one-year tenure by making it a competitive option. With this rate the Rs 1 lakh FD would grow to Rs 1,07,000 in one year.
2. Axis Bank
Axis Bank is offering a 6.6% interest rate on a one-year NRE FD. This meant that if you deposit Rs 1 lakh you will get Rs 1,06,600 at the end of the year.
3. HDFC Bank
HDFC Bank also gives 6.6% on NRE fixed deposits for one year. With this rate an investment of Rs 1 lakh grows to Rs 1,06,600 at maturity.
4. ICICI Bank
ICICI Bank has the same rate as Axis and HDFC, which is 6.6% for one-year NRE deposits. A Rs 1 lakh FD will become Rs 1,06,600 after 12 months.
5. Kotak Mahindra Bank
Kotak Mahindra Bank is another option with a 6.6% interest rate. Like the others, Rs 1 lakh invested grows to Rs 1,06,600 after one year.
6. State Bank of India (SBI)
India’s largest public bank SBI, is also offering 6.6% for one-year NRE FDs. A Rs 1 lakh deposit gives you Rs 1,06,600 after a year.
7. Union Bank of India
Union Bank of India provides the same 6.6% return so Rs 1 lakh becomes Rs 1,06,600 after one year.
8. Punjab National Bank (PNB)
PNB’s one-year NRE FD also earns 6.6%, which grows Rs 1 lakh to Rs 1,06,600.
9. Bank of Baroda
Bank of Baroda gives 6.5% interest on a one-year NRE FD. In this case, your Rs 1 lakh will turn into Rs 1,06,500 in a year.
Small Finance Bank FDs Vs Post Office FDs: Know What Works Best for You
10. Canara Bank
Canara Bank matches Bank of Baroda with a 6.5% rate, giving a total of Rs 1,06,500 on Rs 1 lakh after one year.
RBI’s Deposit Guarantee
The Deposit Insurance and Credit Guarantee Corporation (DICGC) which is part of the Reserve Bank of India (RBI), protects fixed deposits of up to Rs 5 lakh making suring investor safety even in case of bank failure.
Why Choose NRE FDs?
- No tax on the interest you earn in India.
- Full repatriation, meaning you can freely send the money back abroad.
- Safe and steady returns, as the rate is fixed when you open the FD.
Check a few things before investing like if the bank allows early withdrawal, any penalty for breaking the FD and the tenure that gives the best rate. Some banks offer higher interest for slightly longer deposits.
