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ICICI NRE FD Interest Rates 2024: A Complete Guide for NRI Investors

ICICI Bank FCNR Account - A Detailed Insight into Rates, Benefits, and More for NRIs in 2024
5
min read
February 3, 2024
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ICICI Bank NRE Fixed Deposit Rates

ICICI Bank NRE FD rates offer an attractive proposition for NRIs seeking competitive interest rates on their deposits. 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:

Tenure and Regular FD Rates
Tenure Regular FD rates (per annum)
1 year to 389 days 6.70%
390 days to < 15 months 6.70%
15 months to < 18 months 7.20%
18 months to 2 years 7.20%
2 years 1 day to 3 years 7.00%
3 years 1 day to 5 years 7.00%
5 years 1 day to 10 years 6.90%

The rates mentioned above are effective as of 17 February 2024.

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.

Key Features:

  • 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 of 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:

Original Tenure of Deposit and Penal Rates
Original Tenure of Deposit Penal rates (in %) for Deposits < INR 50 million Penal rates (in %) for Deposits > INR 50 million
1 year & above but less than 5 years 1.00 1.00
5 years and above 1.00 1.50


Depositors must 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 FDs 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.

In Conclusion 

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 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.

FAQs

Q1. What is the highest interest rate offered by ICICI Bank for NRE FD? 

The highest interest rate offered by ICICI Bank for NRE FD is 7.20% p.a. for tenures ranging from 15 months to less than 18 months and 18 months up to 2 years.

Q2. Can I open an ICICI NRE FD online? 

Yes, existing ICICI Bank customers can log in to their Internet banking or mobile banking platforms to open an NRE FD online. New customers might need to visit the nearest branch or contact the bank's customer service.

Q3. How is the interest on ICICI NRE FD taxed? 

The interest earned on your ICICI NRE FD is not taxable in India, making it a tax-efficient investment option for NRIs.

Q4. Is there a penalty for premature withdrawal of ICICI NRE FD? 

Yes, depending on the tenure of the deposit, penalties range from 1.00% to 1.50%. It's essential to review the penalty clauses before making a withdrawal.

Q5. Can I take a loan against my ICICI NRE FD? 

Yes, ICICI Bank allows you to avail of a loan up to 90% of your NRE FD value, offering interest rates generally lower than standalone retail loans.

Q6. How often is the interest on ICICI NRE FD compounded? 

The interest on ICICI NRE FD is compounded quarterly for deposits with a tenure above six months. For shorter tenures, the interest is calculated as Simple Interest.

Q7. Are the ICICI NRE FD rates fixed, or can they change during the deposit tenure? 

The ICICI NRE FD rates are fixed for the tenure you choose at the time of deposit. However, the rates for new deposits and renewals can change based on the bank's discretion and prevailing economic conditions.

Q8. Can I renew my ICICI NRE FD automatically? 

Yes, ICICI Bank offers an auto-renewal facility. Ensure you select this option at the time of opening the FD or inform the bank before the maturity date.

Q9. Is the principal amount in ICICI NRE FD repatriable? 

Yes, both the principal amount and the interest earned on ICICI NRE FD are fully repatriable to India.

Q10. What's the difference between ICICI NRE FD and NRO FD?

The primary difference lies in the purpose. While NRE FD is meant for income earned outside India, NRO FD is for income earned in India. Additionally, the interest on NRE FD is tax-free, whereas NRO FD interest is subject to TDS.

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Tejas is an accomplished Chartered Accountant with a passion for finance. With a decade's worth of extensive experience in the banking and credit domain, he has a deep understanding of the financial landscape across consulting and start-ups. In his time away from work, Tejas enjoys sharing his knowledge and helping others understand the intricacies of this complex domain.

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