Non-resident Indians (NRIs) maintain non-resident external (NRE) and non-resident ordinary (NRO) bank accounts. Through NRI bank accounts, NRIs can manage their income earned in India, including rental, dividend income, salary, etc. NRIs can deposit money in foreign as well as Indian currency and withdraw in Indian currency from the NRO account.
The surplus funds in the NRO savings account get invested in NRO fixed deposits. The interest earned on NRO deposits is comparatively higher. Small finance banks and smaller private banks offer interest rates up to 7 percent on NRO deposits for 2-3 years’ tenure, data compiled by BankBazar indicates.
Here is a list of banks offering the best interest rates on up to 3 years Fds.
RBL Bank
RBL Bank offers INR denominated term deposits ranging from 7 days to 20 years. You can hold the account jointly. You can enjoy higher post-tax yields by availing Double Taxation Avoidance Agreement (DTAA) facility. You can repatriate funds up to $1 million per financial year upon submission of relevant documents. The bank offers 6.30 percent interest per annum. With this, it offers the best interest rates among private banks. A sum of Rs 1 lakh invested increases up to Rs 1.13 lakh in two years.
Yes Bank
NRO account with Yes Bank provides a safe bond to deposit income earned in India through rent, dividends, pensions, and other sources. It allows NRI account holders to repatriate funds after applicable tax payments to operate the account through various direct banking channels. And if you invest in FDs, Yes Bank offers 6.25 percent interest per annum for 2–3-year FDs. The minimum investment requirement is Rs 10,000.
IndusInd Bank
If you choose IndusInd Bank, you can have flexible deposit tenures ranging from 7 days to 10 years. And you can enjoy the NRO FD interest rate at 6 percent for 2 to 3 years’ FD, which is compounded quarterly. Thus, you can have Rs 1.12 lakh in two years on your Rs 1 lakh investment.
