Yes Bank

For a tenure of 1 year to less than or equal to 10 years and a deposit amount of less than 1 crore, Yes Bank offers the highest interest rate of 7.0% per annum. Special rates of 7.10% and 7.25% are offered for two tenures of 18 months 8 days to 18 months- 18 days and 36 months 10 days to 36 months 20 days respectively.

It can be noted that the NRIs can open the NRE deposit with the YES Bank with as less as Rs 10,000. This is probably one of the best NRE FDs, which NRIs should consider as interest rates are higher.

Allahabad Bank

For an amount less than 1 crore, the public sector lender is offering an interest rate of 6.6% for a tenure of 1 year to 2 years. For a tenure of 2 years and less than 3 years, the bank offers a rate of return of 6.50% and for over 3 years up to 10 years the return is 6.5%.

Again, it is one of the best NRE Fixed Deposits, because of the higher interest rate when compared to peers.

SBI

For a sum of less than 1 crore an attractive interest rate of 6.4% is offered for a tenure of 1 year to less than 2 years.  For other tenures upto 10 years, the bank offers interest rate between 6.6%-7.75%. For over a sum of Rs 1 crore, the bank offers an interest rate as high as 7% for tenure of 1 year and less than 2 years.

Further no interest is payable if the proceeds from the scheme are withdrawn before one year.

ICICI Bank

India's private sector lender ICICI bank offers NRE deposits with a monthly as well as quarterly pay out. For deposit amount less than 10 million the bank provides return as follows: a one year to 389 days deposit fetches an interest rate of 6.6 per cent. On the other hand a 390 days to two years, fetches an interest rate of 6.75%. A 2 years 1 day to 5 yrs, gives you an interest rate of 6.5% and 5 years1 day to 10 years, gives an interest rate of 6.50%.

Premature withdrawal also attracts a penal rate that depends on the deposit amount as well as the tenure of the deposit. Deposits with monthly pay-out offer an interest rate at a discounted rate.

HDFC Bank

For a deposit amount of less than Rs 1 crore for a tenure  of 1 year maintained in Indian Rupess, an NRI shall earn a return of 6.75 per cent on NRE Deposits. Tenure of over 1 year and upto 2 year shall fetch a return of 6.25%. The NRE deposits parked for a tenure of over 2 years and above shall provide 6% interest rates.

The amount in the NRE deposit account can be either directly remitted to the bank, provided as travellers cheque or presented as foreign currency. Funds can also be transferred in any freely convertible foreign currency. The interest rates are competitive though not the best NRE Deposit interest rates.

Federal Bank

For deposits of less than Rs 100 lakh invested in NRE deposits with the Federal Bank, an NRI shall fetch 6.7% interest rate for a 1 year deposit, 6.75% return for a tenure above 1 year to 2 years and 6.5% for tenure over 2 years. Again, pretty competitive, but, not the best.

It is to be noted thatNon-Resident accounts are not eligible for additional interest offered to senior citizens. P

remature closure penalty of 1% applicable for NRE term deposits above Rs.15 Lakhs.