ICICI Bank NRE Fixed Deposit Rates
For NRIs seeking competitive interest rates on their deposits, ICICI Bank NRE FD rates offer an attractive proposition. The bank provides different interest rates based on the tenure and amount of the deposit. Here's a detailed breakdown of the NRE FD rates ICICI offers for deposits less than Rs.2 crore:
The rates mentioned above are effective as of 24 February 2023.
For those keen on understanding the interest they can earn on their deposits, the ICICI NRE FD interest rates table provides clarity on the returns based on the chosen tenure. It's essential to note that these rates are subject to change, and it's always a good idea to check the latest ICICI FD rates NRE before making a deposit.
Eligibility and Features of ICICI NRE FD
Eligibility: The primary eligibility criterion for opening an ICICI NRE FD is that the individual must be a Non-Resident Indian (NRI) of Indian nationality or origin. This means that Indian citizens who reside outside India for employment, business, or any other purpose indicating an indefinite period of stay abroad are eligible. Similarly, individuals posted in U.N. organizations and officials deputed abroad by the Government of India or public sector undertakings on temporary assignments are also eligible.
- Tax Benefits: One of the most significant advantages of the ICICI NRE FD is the tax exemption. The interest earned on the NRE FD is exempt from income tax in India. This makes it a lucrative option for NRIs looking to earn tax-free interest on their deposits.
- Repatriation: Both the principal amount and the interest earned on the ICICI NRE FD are fully repatriable. This means NRIs can transfer their funds (both principal and interest) back to their foreign accounts without any restrictions.
- Tenure: The ICICI NRE FD can be opened for a minimum period of one year and a maximum period of ten years. This provides flexibility to NRIs to choose a tenure that aligns with their financial goals.
- Loan against FD: ICICI Bank allows NRIs to avail a loan against their NRE FD. They can get a loan of up to 90% of their deposit value. This feature provides liquidity to depositors without them having to break their FD.
- Interest Payout: The interest on the ICICI NRE FD can be paid out on a monthly, quarterly, half-yearly, or annual basis, depending on the depositor's preference.
Premature Withdrawal and Penalties
While the ICICI NRE FD offers attractive interest rates and other benefits, it's essential to be aware of the terms related to premature withdrawal.
- Before 1 year: If the NRE FD is closed before completing one year, no interest will be payable, and there won't be any penalty charges.
- After 1 year: For premature withdrawal after one year, the interest will be calculated at the rate applicable for the period the deposit remained with the bank or the contracted rate, whichever is lower. Additionally, a penalty will be levied as follows:
It's crucial for depositors to be aware of these penalties when considering premature withdrawal from their ICICI NRE FD. Making an informed decision can help avoid unnecessary charges and ensure maximum returns on the investment.
Important Notes and Considerations
When investing in icici bank NRE fd, it's crucial to be aware of certain key points:
- Premature Withdrawals: If an NRE FD account is closed prematurely, i.e., before its maturity date, certain penalties apply. For deposits with a tenure of less than 1 year, no interest will be payable, and no penalty will be levied. For deposits with a tenure of 1 year and above but less than 5 years, a penalty of 1.00% applies. For deposits with a tenure of 5 years and above, the penalty is 1.00% for deposits less than INR 50 million and 1.50% for deposits of INR 50 million and above.
- Minimum and Maximum Tenure: icici NRE FD can be opened for a minimum period of one year and a maximum period of ten years.
- Senior Citizens: The additional interest rate of 0.5% p.a. for senior citizens does not apply to NRE FDs.
- Change in Residential Status: If there's a change in residential status from Non-Resident to Resident, the resident deposit rate of interest will be applicable.
- Renewal and New Deposits: The revised FD interest rates will be applicable for new ICICI Bank Fixed Deposits and the renewal of existing Term Deposits.
For a comprehensive understanding and any other details, it's always recommended to contact the nearest ICICI Bank Branch.
The ICICI NRE FD stands out as a robust investment option for Non-Resident Indians looking to earn competitive interest rates while enjoying the benefits of repatriability and tax exemptions. With its varied tenure options and the backing of one of India's most trusted banking institutions, the icici bank NRE FD offers both flexibility and security. Whether you're planning for a short-term goal or a long-term investment, ICICI Bank's NRE FD is tailored to meet the diverse needs of the global Indian diaspora.