If you are a Non-Resident Indian (NRI) earning income in India such as rent from property, dividends or a pension, an Non-Resident Ordinary (NRO) fixed deposit (FD) can be a convenient way to park your funds while earning interest. Before investing in NRO FDs, it is important to understand both- interest rates offered by banks and tax implications. Interest earned on NRO FDs is taxable in India and is subject to Tax Deducted at Source (TDS). Here's a look at the latest NRO FD interest rates offered by leading banks such as State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), ICICI Bank, Bank of Baroda and Axis Bank.
Why NRIs should park funds in NRO FD
The Double Taxation Avoidance Agreement (DTAA) can reduce the TDS on interest earned from NRO deposits. To avail of DTAA benefits, you need to provide a self-declaration, PAN card, Form 10F, and a current year's tax residency certificate, which may help reduce the overall tax burden.
SBI NRO FD rates
SBI NRO FD rates range from 3.05% to 6.45% on deposits below Rs 3 crore, depending on a tenure for general citizens. The PSU bank offers its highest FD interest rate of 6.45% on a tenure of 444 days.
HDFC NRO FD rates
HDFC NRO FD rates range from 2.75% to 6.50% p.a. for deposits under Rs 3 crore, depending on the tenure. The highest FD interest rate of 6.50% is offered on a tenure of 3 years 1 day to less than 4 years 7 months.
PNB NRO FD rates
Punjab National Bank (PNB) NRO FD rates range from 3% to 6.60% p.a. for deposits under Rs 3 crore. The bank offers its highest NRO FD interest rate of 6.60% on a tenure of 444 days.
ICICI Bank NRO FD rates
ICICI Bank NRO FD rates range from 2.75% to 6.50% p.a. for deposits under Rs 3 crore. The highest FD interest rate of 6.50% is offered by the bank on tenures of 3 years 1 day to 10 years.
Bank of Baroda NRO FD rates
Bank of Baroda NRO FD interest rates range from 3.50% to 6.75% p.a. for deposits under Rs 3 crore, depending on the tenure. BoB offers its highest FD interest rate of 6.75% on a tenure of 555 days.
Axis Bank NRO FD rates
Axis Bank NRO FD rates range from 3% to 6.50% p.a. for deposits under Rs 3 crore, depending on the tenure. The highest FD interest rate of 6.50% is offered on tenures of 18 months to 10 years.
NRO FD interest rates 2026
| Bank | Highest NRO FD Interest Rate (p.a.) | Tenure |
| Bank of Baroda | 6.75% | 555 days |
| Punjab National Bank (PNB) | 6.60% | 444 days |
| HDFC Bank | 6.50% | 3 years 1 day to less than 4 years 7 months |
| ICICI Bank | 6.50% | 3 years 1 day to 10 years |
| Axis Bank | 6.50% | 18 months to 10 years |
| State Bank of India (SBI) | 6.45% | 444 days |
