According to the press release, “This is an exciting opportunity for non-residents to invest their funds as the interest earned is exempt from income tax and the loan can be used up to 90% of the deposit amount. “. offers 5.60% for maturities of one to two years to domestic investors with deposits of less than Rs 2 crore.
Interest rate for NRE Fixed Deposits
The Federal Bank offers interest rates on the NRE from 5.45% to 6.40% for a term of one year to more than 75 months.
Banks are trying to attract dollar inflows
recently launched a dedicated two-day window to mobilize NRE deposits, yielding up to 50 basis points of interest above current rates for the category, according to an article in the Economic Times.
“HDFC Bank expects Overseas Indians to use the special window and purchase NRE deposits for 12-15 months. The window will be available on July 27-28 for fixed NRE deposits where non- residents can invest in rupees.
“Relationship managers are reaching out to the Indian diaspora across the globe, urging them to invest,” the ET report said.