SBI NRE fixed deposit rates start at 6.5% and can reach 7.25% if the invested amount is below 3 crore for a tenure of 1 year to 10 years. If the invested amount is more than 3 crore then the interest rate is between 6.25% – 7.00%. Now, let us understand what are NRE accounts, who can open them to have fixed deposits and for other banking needs with SBI, and is NRE FD is a good choice for NRIs.
About SBI
A Fortune 500 company, an Indian multinational, public sector banking and financial services statutory body headquartered in Mumbai. It is also the largest and oldest bank in India with over 200 years of history. The bank has a market share of 22.84% in deposits and a 19.69% share in advances in India with a strong customer base of close to 50 crore customers. Presently, the bank operates a network of approximately 22,500 branches and 63,000 ATMs and close to 71,968 business correspondent outlets across India.
The bank has a global footprint with a network of close to 250 branches/offices in 32 countries. It has a presence in the USA, Canada, Brazil, Russia, Germany, France, Turkey, Australia, Bangladesh, Nepal, Sri Lanka, and other countries. Being the largest public sector bank and global exposure, it is one of the preferred bank for NRIs (Non resident Indians)
About SBI NRE accounts
NRE (non-residential external) accounts allow account holders to safely and conveniently deposit funds from foreign earnings or transfer of foreign earnings to India. All funds coming into an NRE Account, whichever currency they may be in, are converted into INR or Indian currency, hence allowing an NRI to maintain foreign currency earnings in Indian Rupees. The funds collected as well as the interest earned on NRE accounts is exempt from tax and account holders can repatriate the money at any time.
Features of SBI Non-Resident External (NRE) Account
- To park users’ overseas earnings remitted to India and converted to Indian Rupees
- NRE Account can be opened either individually or jointly with other NRIs / PIOs / OCIs
- Account can be withdrawn for making local payments in Rupees
- Interest earned on NRE accounts is exempt from Indian Income tax
- Rupee loan available against NRE Deposits
- Tenor Of Deposits (TDR/STDR/RD) Minimum period of 1 year, and a maximum period of 10 years
- The flexibility of having any account type e.g. Savings Bank, Current Account, Term Deposit, Special Term Deposit, Recurring Deposit
SBI NRE fixed deposit
SBI NRE FD is a good option for NRIs (Non-Resident Indians) seeking to invest their foreign earnings in India. As it is a tax-free investment option that offers full repatriation of both the principal and interest amount and a facility to take a loan against the FD amount, the SBI NRE fixed deposit is one of the top choices for NRIs.
To know about Credit cards against FD, click here, and to know about Axis Bank Insta Easy Credit Card ( a credit card against FD), click here
The key highlight of this FD is the tax-free interest in India and the Loan Facility ( though the account holders should also prepare themselves with the tax regulations in their country of residence. If they are in a low tax rate country then this can be one of the best options). Repatriation is another key highlight, this means that NRIs can seamlessly transfer the funds back to their foreign account without any hindrances.
SBI NRE fixed deposit rates
SBI NRE fixed deposit rates are one of the best in class among peers, The FD rates are subject to the deposit’s tenure and are periodically updated by the bank according to the current economic conditions and RBI rates. On the date of writing, the SBI NRE FD rates are as below
| NRE TERM DEPOSITS With effect from 15 July 2024 | |||
|---|---|---|---|
| Tenors | Below Rs.3 Crore | Rs.3 Crore & above | |
| 1 year to less than 2 years | 6.80% | 7.00% | |
| 400 Days (AMRIT KALASH) (valid till 30.09.2024 only) | 7.10% | – – | |
| 444 Days (AMRIT VRISHTI) | 7.25% | — | |
| 2 years to less than 3 years | 7.00% | 7.00% | |
| 3 years to less than 5 years | 6.75% | 6.50% | |
| 5 years to 10 years | 6.50% | 6.25% | |
| Premature withdrawal | No interest is payable if the deposit is withdrawn before one year. | No interest is payable if the deposit is withdrawn before one year. | |
| Effective 01st April 2017, Penalty for Premature Withdrawal for Retail Term Deposits will be applicable as under: Description Penalty Up to Rs.5.00 lacs 0.50% Above Rs.5.00 lacs but below Rs.1 Crore 1% | On pre-mature withdrawal of the deposit (after completion of 1 year), interest will be paid at applicable rate for the period the deposit has actually remained with the Bank or contracted rate less Premature Penalty of 1%, whichever is lower. | ||
Processes to follow to open an SBI NRE account
- NRIs can open SBI NRE accounts online; to do so, they need to fill out the account opening application carefully according to the instructions provided by the bank.
Click here to go to the official page to fill out the application form for the SBI NRE savings account.
- NRIs looking to open an SBI NRE account can click here to download the account opening application, fill it out manually, and send it to their preferred home branch in India along with the attested copies of proofs & documents selected for KYC in the application.
- The account can also be opened by filling out and submitting the application form along with proofs & documents selected for KYC in the application by visiting the SBI branch in India or overseas. NRIs will need a valid proof of status (Visa, work permit, job contract etc), proof of identity (relevant pages of passport), Current Address document (Overseas only, e.g. Govt IDs, driving license, utility bill etc), Proof of Permanent Address (Overseas / Indian e.g. voter ID card, AADHAR card etc) and some additional documents in the case of online application.
Click here to know the complete list of documents that are required to open an SBI NRE account.
Types of SBI NRE Deposits
SBI NRE Term Deposits
SBI NRE Term deposits are to be opened by NRIs wishing to deposit their foreign earnings in Indian banks in INR. Both the principal and interest components of these deposits are completely repatriable. The interest component for SBI Term Deposits is paid quarterly and credited to the NRE savings account at the depositor’s request.
Depositors can deposit a minimum amount of Rs 1,000 in general branches. In personal banking branches, the minimum deposit balance should be Rs 1 lakh for metro/urban areas and Rs 50,000 for semi-urban/ rural areas. Depositors can also avail SBI loan facility or SBI overdraft facility against deposits.
SBI NRE Special Term Deposits
SBI also offers Special Term Deposits to NRE depositors wherein the interest component is compounded quarterly and paid on maturity with the principal amount. The minimum deposit balance for Special Term Deposits is at least Rs 1,000 in general banking branches and in personal banking branches, the minimum deposit is Rs 1 lakh for metro/urban areas and Rs 50,000 for semi-urban/ rural areas. The bank also offers overdraft or loan facility against the deposits.
FAQs
Who can submit information online for opening a NRE Savings Bank account?
Any NRI / PIO / OCI desirous of opening an NRE Savings Bank Account with any branch of the State Bank of India can apply for this account.
Can NRIs apply for an account jointly through the Online Account Opening Application?
Yes, they can apply for an account jointly through the Online Account Opening Application but with up to two applicants.
Will KYC documents be required for all account holders?
Yes, KYC documents in respect of all joint account holders will be required.
Is there a time limit within which the applicant must post/courier the application after submitting the information online?
Yes, the application along with documents for KYC should reach the advised Global NRI Centre (GNC) within 45 days of submitting the information online, or else the application will be rejected and have to be filled out again.
Can a minor submit information online for opening a SBI Savings Bank account?
A minor may submit information online for opening a Savings Bank account provided he/she is more than 10 years old and can sign uniformly.
From where can the applicant get the application and KYC documents attested?
You can get the signatures in an application and KYC documents attested from any of the following:
-Authorized official at SBI Foreign Office (please click here, to check whether the office in your country is permitted to attest)
-Notary Public
-Indian Embassy or High Commission
How can a forgotten NCRN (NRI Customer Reference Number) or NARN (NRI Application Reference Number) be retrieved?
When the NCRN / NARN is generated, it is also sent to the applicant at the email address provided by them. If they have deleted that email or the email is not received, they will need to enter the information again and generate a new NCRN / NARN
What are the current SBI NRE FD interest rates for 2024-25?
SBI NRE fixed deposit rates as of now for below 3 crore amount start from 6.8% and go up to 7.25% for some schemes. Foe above 3 crore amount the interest rates start from 6.25% and go up to 7%.
Is the interest earned on SBI NRE FD taxable in India?
No, the interest earned on SBI NRE FD is exempted from any tax in India. This tax exemption makes the NRE FD a lucrative investment option for NRIs, especially when combined with the competitive State Bank of India NRI interest rates. Though NRIs should keep in mind that this will be taxed in their country of residence so they should prepare themselves for that.
Can a loan be availed against SBI NRE FD?
Yes, SBI provides an option to avail of a loan against SBI NRE fixed deposit. This feature ensures that depositors can access funds in emergencies without having to make a premature withdrawal. The loan amount can be up to 90% of the deposit amount, depending on the bank’s terms and conditions.
Is there any penalty for premature withdrawal of SBI NRE Fixed Deposit?
Yes, like other bank fixed deposits, if one decides to break SBI NRE FD before its maturity date, there will be a penalty in the form of a reduced interest rate. The exact penalty can vary based on the bank’s terms and conditions at the time of withdrawal.
Is SBI NRE fixed deposit rates competitive compared to peers?
Yes, SBI NRE fixed deposit rates are one of the best in the industry. It is a good investment option due to being exempted from tax in India plus Repatriation and an option to avail a loan against FD makes it an attractive investment option.
