Top 5 Private Sector Banks Promising Returns Up To 6.50% On NRO Deposits

Non-Resident Indians (NRIs) seeking higher returns in India can open Non-Resident Ordinary (NRO) Fixed Deposits at any Indian bank to receive interest rates comparable to those given to regular Indian residents and not senior citizens. NRO Fixed Deposits not only provide competitive interest rates, resulting in greater returns on your deposits, but you may also apply for a loan up to 90% of your deposit at competitive rates to cover your short-term needs. The minimum deposit amount for NRO Fixed Deposits may start from Rs 25,000, and the maturity period ranges from 7 days to 10 years. NRIs can also benefit from attractive exchange rates while converting their foreign currency to Indian rupees. Interest on NRO Savings Accounts and NRO Fixed Deposits is subject to tax deduction at source, therefore a TDS of 30% + relevant surcharge and cess is deducted. NRIs, on the other hand, can minimize their TDS by taking advantage of the Double Taxation Avoidance Agreement (DTAA). NRIs can open an NRO Fixed Deposit account at any of the below-mentioned banks to receive a higher interest rate of up to 6.50 percent, in addition to the option of having interest deposited to their account monthly, quarterly, or at the maturity date.

Yes Bank

Yes Bank is giving the highest interest rate of 6.50 percent on NRO deposits maturing in 5 years to less than 10 years for deposits of less than Rs 2 crore. The rates indicated below are applicable to domestic, NRE, NRO deposits and are effective as of August 5, 2021.

Period	Interest Rates
7 to 14 days	3.25%
15 to 45 days	3.50%
46 to 90 days	4.00%
3 months to < 6 months	4.50%
6 months to < 9 months	5.00%
9 months to < 1 Year	5.25%
1 year < 18 Months	5.75%
18 Months to < 3 years	6.00%
3 Years to < 5 years	6.25%
5 Years to <= 10 years	6.50%
Source: Bank Website

RBL Bank

RBL Bank is offering NRIs an interest rate of up to 6.30 percent on NRO deposits of less than Rs 3 crore. On NRO deposits, RBL Bank is now offering the rates indicated below, which are effective as of September 1, 2021.

Period of deposit	Interest Rates p.a.
7 days to 14 days	3.25%
15 days to 45 days	3.75%
46 days to 90 days	4.00%
91 days to 180 days	4.50%
181 days to 240 days	5.00%
241 days to 364 days	5.25%
12 months to less than 24 months	6.00%
24 months to less than 36 months	6.00%
36 months to less than 60 months	6.30%
60 months to 60 months 1 day	6.30%
60 months 2 days to less than 120 months	5.75%
120 months to 240 months	5.75%
Tax Savings Fixed Deposit (60 months)	6.30%
Source: Bank Website

IndusInd Bank

On NRO deposits of less than Rs 2 Cr, IndusInd Bank is offering an interest rate of up to 6%. From July 23rd, 2021, the bank is providing NRIs the rates stated below on their NRO deposits.

Tenure	Interest rates in %
7 days to 14 days	2.5
15 days to 30 days	2.75
31 days to 45 days	3
46 days to 60 days	3.25
61 days to 90 days	3.4
91 days to 120 days	3.75
121 days to 180 days	4.25
181 days to 210 days	4.6
211 days to 269 days	4.75
270 days to 354 days	5.5
355 days to 364 days	5.5
1 Year to below 1 Year 6 Months	6
1 Year 6 Months to below 1 Year 7 Months	6
1 Year 7 Months to below 2 Years	6
2 years to below 2 years 6 Months	6
2 years 6 Months to below 2 years 9 Months	6
2 years 9 months upto 3 years	6
Above 3 years upto 61 months	6
61 month and above	5.5
Indus Tax Saver Scheme (5 years)	6
Source: Bank Website

Karur Vysya Bank

Karur Vysya Bank is providing the following rates on NRO Deposits of less than Rs 2 Cr, which are in force from October 8, 2021.

Tenure	Interest rate in %
7 Days to 14 days	3.25%
15 Days to 30 days	3.25%
31 Days to 45 days	3.25%
46 Days to 90 days	3.25%
91 Days to 120 Days	3.50%
121 Days to 180 Days	3.75%
181 Days to 270 days	4.00%
271 Days to less than 1 year	4.25%
1 year to less than 2 years	5.15%
2 years to less than 3 years	5.25%
3 years to less than 5 years	5.25%
5 years and above	5.60%
KVB - Tax Shield	5.75%
Source: Bank Website

South Indian Bank

South Indian Bank is offering the highest rate of 5.65 percent on NRO deposits of less than Rs 2 crore maturing in 5 years. With effect from October 8, 2021, the bank is providing NRIs the rates stated below on NRO deposits.

Tenure	Interest rate in %
7 days to 45 days	3.50%
46 days to 90 days	3.75%
91 days to 180 days	3.80%
181 days to 270 days	4.10%
271 days to less than 1 year	4.50%
1 year to less than 30 months	5.20%
30 months to less than 3 years	5.35%
3 years to less than 5 years	5.50%
5 years	5.65%
Above 5 years to up to and including 10 years	5.50%
Tax Gain (5 Years)	5.65%
Source: Bank Website