Allowed with a penalty (usually 0.5%–1% lower interest rate). Some banks restrict premature closure before 6 months.
Whether you are saving for a future goal in India—like a home down payment, a wedding, or retirement—or simply looking to park your surplus INR earnings, understanding how NRI RDs work is essential. What is an NRI Recurring Deposit? nri recurring deposit
Most Indian banks offer quarterly compounding, which means you earn interest on your interest, significantly boosting your final maturity value. Allowed with a penalty (usually 0
An NRI RD is a term deposit offered by Indian banks specifically for Non-Resident Indians. It operates on the principle of regular savings: What is an NRI Recurring Deposit
The process has become largely digital in recent years.
| Bank | Interest Rate (p.a.) | Tenure Range | Special NRI Feature | |------|----------------------|--------------|----------------------| | SBI | 6.25% – 7.25% | 1 – 10 years | NRI RD linked to NRE/NRO | | HDFC Bank | 6.50% – 7.75% | 6 months – 10 years | 0.25% extra for senior citizen NRIs | | ICICI Bank | 6.50% – 8.00% | 6 months – 10 years | Instant online RD opening | | Axis Bank | 6.75% – 7.90% | 6 months – 10 years | Flexi RD (vary monthly installment) | | Kotak Mahindra | 6.20% – 7.80% | 12 – 60 months | 5% p.a. on premature withdrawal |
| Feature | NRE RD | NRO RD | |--------|--------|--------| | | Foreign currency income | Indian income (rent, pension, dividends) | | Repatriability | Fully repatriable (principal + interest) | Only interest up to $1 million per financial year; principal restricted | | Taxation | Tax-free in India (interest exempt under Sec 10(4)) | Interest taxable (TDS @30% + cess) | | Joint holding | Only with another NRI | With NRI or resident Indian (close relative) |