NRE Recurring Deposit Interest Rates

Choosing between an NRI (Non-Resident Indian) account and an NRE (Non-Resident External) account depends on individual financial needs and goals. An NRE account is preferable for NRIs who wish to hold and manage their foreign earnings in India, as it offers tax-free interest and full repatriability of both principal and interest. The other type of NRI account, or the NRO (Non-Resident Ordinary) account, is suitable for managing income earned in India, such as rent or dividends,The interest earned on NRO accounts and deposits is taxable. Therefore, the choice depends on whether the focus is on foreign income management or domestic earnings.

NRE (Non-Resident External) interest rate refers to the interest rate offered on deposits held in NRE accounts. NRE Accounts are - bank accounts in India that Non-Resident Indians (NRIs) can use to maintain and manage their income earned outside India. They can deposit funds in foreign currencies, which are converted into Indian Rupees at the applicable currency conversion rates. The interest rates on NRE Accounts are competitive and are influenced by various factors, including market conditions and the Reserve Bank of India's regulations. For the most up-to-date rates, customers can visit the HDFC Bank website or contact our nearest bank branch.

No, the interest earned on NRE Recurring Deposits (RDs) is not taxable in India. NRE RDs are designed for Non-Resident Indians (NRIs), offering them a tax-free investment option for their foreign earnings. Both the principal amount and the interest earned are exempt from Indian income tax, wealth tax, and gift tax, making NRE RDs an attractive and efficient way for NRIs to save and grow their money. Additionally, the funds in NRE accounts, including the accumulated interest, are fully repatriable, meaning they can be transferred back to the NRIs' country of residence without any restrictions.