Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsPhotosBusinessPersonal Finance

Advantage NRIs: These private banks offer up to 6.60% interest on NRO deposits

Against the backdrop of the RBI's repo rate hikes and depreciating rupee, smaller and new private banks are offering higher interest rates on non-resident deposits

July 21, 2022 / 07:57 AM IST
Falling,Red,Arrow,With,Symbol,Of,Rupee,,Crisis,Concept.,3d
1/9
The Reserve Bank of India (RBI) has raised the repo rate by 90 basis points to 4.9 percent (100 basis points = 1 percentage point) in this financial year to control the rising inflation. Also, the rupee has depreciated about 7.5 percent against the US dollar in 2022 so far. These dual factors have made investments in domestic fixed deposits attractive. Several banks, including State Bank of India (SBI), Bank of Baroda, and IDBI Bank, have increased their interest rates on NRO deposits for specific investment tenures.
2/9
Non-Resident Indians (NRIs) maintain Non-Resident Ordinary (NRO) bank accounts. It is an account meant for an NRI to manage her income earned in India, which includes rentals, dividend incomes, salaries etc. An NRI can deposit money in foreign as well as Indian currency and make withdrawals in Indian currency from this account. Surplus funds in the NRO savings account should get invested in NRO fixed deposits. Here are the private banks offering interest up to 6.60 percent on NRO deposits with tenures of 2-3 years, as per data compiled by BankBazaar.
DCB BANK
3/9
DCB Bank offers an interest of 6.60 percent per annum on 2-3 year FDs. Among private banks, this bank offers the highest rate. A sum of Rs 1 lakh invested in this FD will grow to Rs 1.14 lakh in two years.
Bandhan Bank
4/9
Bandhan Bank, IndusInd Bank, RBL Bank and YES Bank offer 6.50 percent interest per annum on 2-3 year FDs. A sum of Rs 1 lakh invested will grow to Rs 1.14 lakh in two years. In the case of YES Bank's FD, the minimum investment required is Rs 10,000.
IDFC First Bank
5/9
IDFC First Bank offers 6.25 percent interest per annum on 2-3 year FDs. A sum of Rs 1 lakh invested will grow to Rs 1.13 lakh in two years.
Kotak mahindra Bank
6/9
Kotak Mahindra Bank offers an interest rate of 5.90 percent per annum on 2-3 year FDs. A sum of Rs 1 lakh invested will grow to Rs 1.12 lakh in two years. The minimum investment required is Rs 50,000.
As of now, the bank is adequately capitalised (CAR of 14.57 percent) and will raise capital if growth remains strong
7/9
Federal Bank offers 5.85 percent interest per annum on 2-3 year FDs. A sum of Rs 1 lakh invested will grow to Rs 1.12 lakh in two years.
Representative Image
8/9
Smaller private banks and new ones are offering higher interest rates to garner fresh deposits. The Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, guarantees investments in fixed deposits of up to Rs 5 lakh.
BSE
9/9
The data on fixed deposits is as of July 13, 2022, as mentioned on respective websites. Interest rates on NRO deposits of up to Rs 2 crore for 2-3 year tenures for all listed (BSE) private banks have been considered for data compilation. Banks for which verifiable data is not available have not been considered. For all FDs, quarterly compounding is assumed.
Hiral Thanawala
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
first published: Jul 21, 2022 07:57 am

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347