Best Fixed Deposit Interest Rates for NRIs 2020 - All You Need To Know| North Loop Official Blog
North Loop Logo
North Loop
01 Jul 2020

Best Fixed Deposit Interest Rates for NRIs 2020 - All You Need To Know

thumbnail for Best Fixed Deposit Interest Rates for NRIs 2020 - All You Need To Know
Credit: North Loop

Choosing the right fixed deposit option that is hassle-free and at the same time increases wealth is of utmost importance for NRIs who are looking for smart investment opportunities to grow their savings. We understand that this process can become confusing, given there are a multitude of options to choose from. Here's a list to simplify the process and help NRIs pick a fixed deposit option with the best interest rate offered by banks.
First, let us begin by understanding what Fixed Deposits essentially are. A Fixed Deposit is a financial instrument that is offered by banks or NBFCs to domestic citizens as well as Non-Resident Indians (NRIs) that provides them a higher rate of interest than a regular savings account, until the given maturity date. In this article, we shall focus on the number of fixed deposit options that NRIs can choose from and their respective interest rates -

There are two major types of Fixed Deposits which are offered by banks to NRIs. They are –

NRE Fixed Deposits – These FDs offer several benefits to the NRE Fixed Deposit Account holder and are one of the most common options to choose from. It gives NRIs an opportunity to convert their foreign earnings into Indian currency denominations, deposit them as savings and earn high rates of interest offered by the bank. Moreover, both the principal and interest earned in this type of FD is tax-free (tax-exempted interest income under section 10(4) of the Income Tax Act) and can get repatriated to the account holder’s country of residence. An NRE Fixed Deposit Account can be opened jointly with other NRIs and offer flexible tenures that may range from 1 year to 10 years. Also, NRE FDs are covered under the DICGC insurance (Deposit Insurance and Credit Guarantee Corporation).

NRO Fixed Deposits – NRO Fixed Deposits are mainly opted by NRIs to manage and invest any earning that is obtained in the form of Indian Currency, be it rent money or interest payments. Unlike NRE FDs, Income tax applies to the interest earned on principal amount in the NRO account and the interest rates of NRO deposits are usually the same as domestic deposits. Moreover, an NRO account can be jointly held with an Indian Resident as well, as long as the Indian Citizen falls under the category of a relative (according to Section 6 of the Companies Act, 1956). Read all about NRE and NRO accounts.
Profile image2: There are two major types of Fixed Deposits which are offered by banks to NRIs. They are –
Credit: North Loop

Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

Let us now compare the Fixed Deposit rates offered by different banks –

Bank Name Rate of Return (p.a)
North Loop7.50%
ICICI Bank6.20%
Kotak Mahindra6.20%
Punjab National Bank6.30%
State Bank of India5.90%
Bank of Baroda6%
HDFC6.15%
Axis Bank6.40%
RBL Bank7.20%
Yes Bank7.25%
UCO Bank6.10%
Canara Bank6.15%
HSBC5%
Standard Chartered6.50%
Indian Bank6.10%
Central Bank of India6.10%
IDFC First Bank7.25%
Indusind Bank6.65%
IDBI Bank6.30%

It is best to invest in a bank that offers the highest FD rate of return, and NRIs who take this decision wisely can invest their idle savings in a lucrative manner to grow their wealth and also diversify their portfolio.
North Loop offers an industry highest, 7.50% rate of return on NRI Fixed Deposits along-with the facility of simple online signing up within 5 minutes, ensuring that the banking experience of NRIs is 100% effortless and digital, no matter where they are situated. Moreover, loans can also be obtained on FDs within 24 hours with the North Loop digital banking system.

Conclusion –

Investing in Fixed Deposits for Non-Resident Indians can be beneficial in many ways. It is safe, highly secure, offers a high rate of return, and is an ideal option to deposit and save money earned abroad. However, NRIs should be well advised and make rational choices that help them to earn the highest returns.
To grow wealth, increase savings, diversify portfolios and get industry-leading FD rates, you can sign up with North Loop (7.5% rate of return) and access an all-in-one financial hub through your mobile phones. North Loop advocates borderless banking and provides an ultimate digital experience for all banking needs.

Save money with

No-fee banking, investments, remittances & insurance for the global Indian

This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.