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NRO FD Interest Rates: Earn up to 6.75% - SBI, HDFC, ICICI, or Axis Bank, which offers the best rate for NRIs?
Written by Shubham Jain
Opening a Non-Resident Ordinary (NRO) fixed deposit can be an effective way to manage your funds while earning interest if you are an NRI earning income in India from rent, dividends, pension, or property income. It's important to be aware of the interest rates set by different banks as well as the tax implications before investing in NRO FDs.
The interest earned on NRO FDs is subject to taxation in India. It also attracts tax deducted at source (TDS). Below is an overview of the latest NRO FD interest rates offered by major banks, including State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), ICICI, Axis Bank, and Bank of Baroda.
Reasons for NRIs to Consider NRO FD
You can reduce the TDS on the interest earned from NRO deposits under the Double Taxation Avoidance Agreement (DTAA). However, you need to submit your PAN card, a self-declaration, Form 10F, and tax residency certificate for the current year to avail of this benefit. Claiming this treaty can help reduce your overall tax burden.
PNB NRO FD Rates
PNB (Punjab National Bank) provides NRO FD interest rates between 3% and 6.60% per annum for deposits below ₹3 crore. The highest interest rate of 6.60% is available for a tenure of 444 days.
Axis Bank NRO FD Rates
Axis Bank's NRO FS rates range from 3% to 6.50% per annum for deposits under ₹3 crore, depending on the tenure. The highest interest rate offered is 6.50% on tenures of 18 months to 10 years.
SBI NRO FD Rates
The interest rates for SBI NRO FDs vary from 3.05% to 6.45% for deposits less than ₹3 crore, depending on the tenure. The highest FD interest rate of 6.45% is applicable for a tenure of 444 days
ICICI Bank NRO FD Rates
ICICI Bank offers NRO FD interest rates from 2.75% to 6.50% per annum for deposits under ₹3 crore, depending on the chosen tenure. The maximum rate of 6.50% applies to tenures from 3 years 1 day to 10 years.
HDFC NRO FD Rates
HDFC offers NRO FD interest rates ranging from 2.75% to 6.50% per annum for deposits under Rs 3 crore, depending on tenure. The maximum FD interest rate of 6.50% is provided for tenures ranging from 3 years 1 day to less than 4 years 7 months.
Bank of Baroda NRO FD Rates
Interest rates for Bank of Baroda NRO FDs range between 3.50% and 6.75% per annum for deposits under Rs 3 crore, depending on tenure. The highest FD interest rate of 6.75% is available for a tenure of 555 days.
NRO FD Interest Rates 2026
Here is a table to make understanding the interest rates easier for each bank, depending on the tenure:
| Bank | NRO FD Interest Rate per annum | Tenure |
|---|---|---|
| Punjab National Bank (PNB) | 6.60% | 444 days |
| Axis Bank | 6.50% | 18 months to 10 years |
| State Bank of India (SBI) | 6.45% | 444 days |
| ICICI Bank | 6.50% | 3 years 1 day to 10 years |
| HDFC Bank | 6.50% | 3 years 1 day to less than 4 years 7 months |
| Bank of Baroda | 6.75% | 555 days |
Glossary
- Capital: Capital, a Financial Term Used for Business Operations, Like Bank Accounts, Stocks, Assets, Etc.
- Double Taxation Avoidance Agreement (DTAA): DTAA, an Agreement Signed Between the Countries to Avoid Double Taxation.
- Direct Tax: Direct Tax, a Type of Tax Imposed on Income, Sales, or Property, Based on the Ability to Pay.
- Assessment Year (AY): The Assessment Year is When Taxes on the Previous Year's Income Are Evaluated, Calculated, and Filed.
- Tax Deducted at Source (TDS): The Full form of TDS is Tax Deducted at Source, which is a way to collect the income tax.
Disclaimer
Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.
About Author
Shubham Jain is the Founder of SaveTaxs and has extensive experience in Indian and NRI taxation. He advises individuals, NRIs, and businesses on tax filing, tax planning, capital gains, DTAA benefits, fund repatriation, and compliance matters. He regularly writes about taxation and related financial topics. His focus is on making complex tax concepts easy to understand. Through his articles, he helps taxpayers stay informed, avoid common mistakes, and stay compliant with Indian tax laws. See Full Bio
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Frequently Asked Questions
An NRO (Non-Resident Ordinary) fixed deposit is a rupee-term deposit for NRIs to park their Indian-source income (rent, dividends, domestic salary, sale proceeds). It's ideal when you wish to repatriate only after taxes and bank permission, or want to consolidate rupee income in India.
NRIs should use an FD calculator to check the effective annual yield rather than looking at the headline rates alone. You must compare the quoted annual rate for your chosen tenor, the compounding frequency, and the premature withdrawal terms. Finally, ensure you factor in the tax treatment on interest and look for any senior or NRI special rates.
Yes, interest on NRO FDs is taxable in India and subject to TDS at applicable rates. Your final tax position is determined based on your residential status, DTAA with your country, and whether you file an Indian tax return to claim credit or refund.
Yes, NRIs can repatriate NRO FD principal and interest, but it is subject to limits and certain documentation like Form 15CA/15CB in some cases. NRE/FCNR FDs offer full repatriability for foreign income.
Banks revise FD rates frequently, either weekly or monthly, in response to market/RBI movements. You must always check the bank's official rate page or contact the branch office before placing your deposit.