NRO Fixed Deposit Rates
NRO FD rates in India currently range from about 2.75% to 7.25% p.a. across major banks, depending on the bank and tenure you choose. A Non-Resident Indian can open an NRO Fixed Deposit to safely park India-earned income, such as rent, dividends or salary, while earning guaranteed, taxable returns.
NRO Fixed Deposit (FD)
NRO or Non-Resident Ordinary Accounts are meant for NRIs or Non-Resident Indians to keep funds that are also existent prior to becoming a Non-Resident Indian and also the funds earned by them within the country such as rent, Indian Salary, dividends and so on.
Interest earned is taxable under the Income Tax Act of India. This account offers numerous benefits as well.
The interest rate applicable varies from bank to bank. The table below illustrates the rates of some popular banks. Most banks do not extend the senior citizen interest premium to NRO deposits, since the account is held by a Non-Resident Indian rather than a resident senior citizen; only a few banks make an exception..
NRO FD Interest rates for a Deposit of less than Rs. 2 crore
Name of the Bank | Interest Rates for General Public (p.a.) | Interest Rates for Senior Citizens (p.a.) |
Axis Bank | 3.00% to 6.50% | Not applicable to NRO (same as General Public) |
Bank of Baroda | 3.50% to 6.30% | 4.00% to 7.00% |
Bank of India | 3.00% to 6.30% | Not applicable to NRO (same as General Public) |
Deutsche Bank | 3.00% to 7.00% | Not applicable to NRO (same as General Public) |
HDFC Bank | 2.75% to 6.50% | Not applicable to NRO (same as General Public) |
ICICI Bank | 2.75% to 6.50% | Not applicable to NRO (same as General Public) |
IDBI Bank | 3.00% to 6.50% | Not applicable to NRO (same as General Public) |
Punjab National Bank | 3.00% to 6.60% | Not applicable to NRO (same as General Public) |
State Bank of India | 4.50% to 6.45% | Not applicable to NRO (same as General Public) |
YES Bank | 3.25% to 7.25% | Not applicable to NRO (same as General Public) |
Note: Interest rates updated on 19 August 2026.
Documents Needed to Procure Fixed Deposit (FD)
In order to open a Fixed Deposit account, individuals will need to provide the following -
- Identity Proof such as Passport, Permanent Account Number (PAN) Card, etc.
- Address Proof such as Aadhaar card, Voter ID, Utility Bills, etc.
Other documents, if necessary, will be mentioned by the bank authorities.
Features of NRO Fixed Deposit
- This account is meant for Non-Resident Indians who receive regular income from sources in India.
- The interest earned on this account is taxable under the Income Tax Act of 1961.
- Repatriation of principal investment is not offered but interest earned can be transferred to a foreign account.
- NRO account holders can open a joint account with their relatives who live in India and are Indian citizens.
- NRO account is maintained in Indian currency and cannot be repatriated or converted to foreign currency.
- Customers can earn a higher interest amount and returns on rupee income as compared to savings or current account offers.
- NRO deposit account holds rate in Indian currency and interest rates applicable on this account vary based on every bank.
- Most banks let NRO Fixed Deposit holders choose to receive interest pay-outs monthly, quarterly, or on maturity, giving depositors flexibility in how they receive returns.
- NRO Fixed Deposit holders can add a nominee to the account, so the deposit proceeds pass smoothly to the nominee in the event of the account holder's death.
Tax Applicable on NRO Fixed Deposit
NRO Fixed Deposits are not tax free, in the sense that, although there will not be tax charged on the principal, the interest earned on it will be subject to tax as per the Income Tax Act of 1961. Tax applicable on NRO account is quite high at 30% along with applicable surcharge and cess.
Surcharge on the tax deducted applies only once an NRI's total taxable income in India exceeds Rs.50 lakh in a financial year, starting at 10% and rising in slabs as income rises, not simply when NRO interest alone crosses Rs.10 lakh.
NRIs from a country that has a Double Taxation Avoidance Agreement (DTAA) with India can apply for a lower TDS rate on NRO Fixed Deposit interest, or claim credit for the tax already paid in India, by submitting a Tax Residency Certificate and Form 10F to their bank.
Summary
An NRO Fixed Deposit lets a Non-Resident Indian earn secure, guaranteed returns on income earned in India, with rates that vary by bank and tenure as shown in the table above. The interest is taxable and subject to TDS, though NRIs from a DTAA country can often reduce this. Compare current NRO FD rates across banks on this page before you book your deposit.
FAQs on NRO Fixed Deposit Rates
1.What is an NRO Fixed Deposit?
An NRO Fixed Deposit is a rupee term deposit that lets a Non-Resident Indian park income earned in India, such as rent, dividends or salary, for a fixed tenure at a guaranteed interest rate. It is opened under a Non-Resident Ordinary (NRO) account, which any bank offering NRO FD rates can open for an eligible NRI.
2.Who is eligible to open an NRO Fixed Deposit?
Any Non-Resident Indian or Person of Indian Origin who has income arising in India can open an NRO Fixed Deposit. NRO account holders can also open the deposit jointly with a relative who is a resident Indian citizen.
3.What is the difference between an NRO Fixed Deposit and an NRE Fixed Deposit?
An NRO Fixed Deposit holds income earned within India and its principal cannot be repatriated abroad, while an NRE Fixed Deposit holds foreign earnings and is fully repatriable. NRO FD interest is taxable in India, whereas NRE FD interest is not.
4.Can I deposit Indian currency into an NRO Fixed Deposit account?
Yes, an NRO Fixed Deposit is maintained in Indian rupees, and you can fund it with money already in India or by transferring funds from another NRO or NRE account. The deposit cannot be converted into foreign currency.
5.What documents are required to open an NRO Fixed Deposit?
Banks typically ask for identity proof such as a passport or PAN card and address proof such as an Aadhaar card, voter ID or utility bill to open an NRO Fixed Deposit. Individual banks may request additional documents depending on their own NRO account-opening process.
6.Is the interest earned on an NRO Fixed Deposit taxable?
Yes, interest earned on an NRO Fixed Deposit is taxable in India under the Income Tax Act, and the bank deducts tax at source before crediting the interest. This applies regardless of which bank the NRO FD is held with.
7.Can I reduce the tax on my NRO Fixed Deposit interest under DTAA?
An NRI from a country that has a Double Taxation Avoidance Agreement with India can often apply a lower TDS rate to their NRO Fixed Deposit interest, or claim credit for Indian tax already paid. This usually requires submitting a Tax Residency Certificate and Form 10F to the bank holding the NRO FD.
8.Are premature withdrawals allowed on an NRO Fixed Deposit?
Many banks allow premature withdrawal of an NRO Fixed Deposit, usually subject to a penalty and a lower applicable interest rate. Whether it is allowed, and on what terms, depends on the specific bank and the NRO FD scheme chosen.
9.Can I repatriate the principal amount from my NRO Fixed Deposit?
The principal invested in an NRO Fixed Deposit is generally not repatriable outside India. Some repatriation of the principal may be permitted only within limits set by RBI regulations, with supporting documentation.
10.Can I repatriate the interest earned on my NRO Fixed Deposit?
Yes, the interest earned on an NRO Fixed Deposit can usually be transferred or repatriated to a foreign account, even though the principal cannot. Banks may ask for a chartered accountant's certificate to process this transfer.
11.Can I open a joint NRO Fixed Deposit account?
Yes, an NRO Fixed Deposit can be opened jointly, including with a relative who is a resident Indian citizen. This makes it easier for family members in India to help manage the NRI's NRO FD.
12.Can I nominate someone for my NRO Fixed Deposit?
Yes, most banks let an NRO Fixed Deposit holder add a nominee to the account. This allows the deposit proceeds to pass to the nominee smoothly if the account holder passes away.
13.How is interest paid out on an NRO Fixed Deposit?
Most banks let an NRO Fixed Deposit holder choose to receive interest monthly, quarterly, or as a lump sum along with the principal at maturity. The exact pay-out options available depend on the bank and the specific NRO FD scheme.
14.Do senior citizens get a higher interest rate on an NRO Fixed Deposit?
Most banks do not extend the senior citizen interest premium to an NRO Fixed Deposit, since the account is meant for Non-Resident Indians rather than resident senior citizens. A few banks are an exception, so it is worth checking with your bank before booking an NRO FD.
15.Which currency is an NRO Fixed Deposit maintained in?
An NRO Fixed Deposit is always maintained in Indian rupees, regardless of which currency the underlying income was originally earned in. This is one of the key features that distinguishes an NRO FD from a foreign-currency NRI deposit.
16.Can I transfer funds from an NRE account to open an NRO Fixed Deposit?
Yes, funds can be transferred from an NRE account into an NRO account to open or add to an NRO Fixed Deposit. The reverse transfer, from NRO to NRE, is more restricted and generally needs supporting documentation.
17.What happens to my resident Fixed Deposit when I become an NRI?
Once your residential status changes to Non-Resident Indian, you are required to inform your bank so your existing resident Fixed Deposit can be converted into an NRO Fixed Deposit. Continuing to hold a resident FD after becoming an NRI is not compliant with RBI rules.
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