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NRI Savings Account Interest Rate – Earn up to 7% p.a.

  • Zero processing Zero processing fees on money transfers
  • customer support 24/7 customer support
  • Enjoy Monthly Enjoy Monthly Interest Credits
Open an Account

Recognised among the World's Best Banks 2025 by
Forbes in partnership with Statista.

Compare Savings A/c Interest

₹10K ₹5Cr

IDFC FIRST Bank pays 7% p.a.on extra balance above ₹3L

p.a. paid quarterly

1.5% 3.5%

You will earn

₹63,248 more yearly

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with IDFC FIRST bank

Yearly Interest from your bank

₹60,678

Yearly Interest from IDFC FIRST Bank

₹1,23,926

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NRI Account Interest Rates (October 2026)

Latest NRI Savings Account Interest Rates

Enjoy higher interest rates across various NRI account balances:


Interest Rates on Savings Account Bank Deposits applicable w.e.f. 4th  October 2026. The following table outlines the latest slab-wise interest rates applicable to both NRE accounts and NRO accounts. 

Balance (₹)  Rate of Interest (% p.a., Progressive)
₹0 to ₹3 lakh 2.50%
Above ₹3 lakh up to ₹25 lakh 7.00%
Above ₹25 lakh 6.00%

Note: Interest will be calculated on progressive balances within each applicable Interest Rate Slab. Know more

NRI savings account interest rates refer to the returns earned on deposits held in NRE and NRO savings accounts in India. These rates are applied on a progressive basis slab-wise and calculated on the daily closing balance. Interest on NRI Savings Accounts are calculated on a progressive basis as per the rate slabs and credited monthly, helping you enjoy consistent growth on your funds. The calculation follows daily end-of-day balances, in line with regulatory guidelines, which ensures accuracy and transparency. With attractive rates and monthly interest credits, your NRI Account becomes a reliable tool for managing and growing your Indian funds efficiently.

How to Calculate NRI Savings Account Interest Rate

    The interest rate on NRE and NRO Savings Accounts is calculated based on the daily closing balance. Here is how it is calculated:

    • Interest = Sum of [Amount in Each Slab × Number of Days × Applicable Annual Interest Rate ÷ 365]

    If the balance changes during the month, interest is calculated on each day’s closing balance at the applicable rate and then added together. The Reserve Bank of India (RBI) requires interest on NRE and NRO Savings Accounts to be calculated daily.

    For instance, suppose you maintain ₹5 lakh in your NRI Savings Account for 30 days at an illustrative interest rate of 7% p.a. Then the interest earned would be:

    Interest = (₹3,00,000 × 30 × 2.5% ÷ 365) + (₹2,00,000 × 30 × 7% ÷ 365) = ₹1,767

    Under the RBI’s current directions, banks must credit interest on NRE and NRO Savings Accounts quarterly or more frequently, allowing more frequent payouts.

    IDFC FIRST Bank credits interest monthly on its NRI Savings Accounts. Interest is calculated on the daily closing balance and credited monthly, enabling your savings to benefit from more frequent interest credits.

tds-on-savings-account-interest

How NRI Account Interest Rates Work

    • Interest is applied on a progressive slab basis   

    • Different portions of the balance earn different interest rates as per the applicable slab

    • Interest is calculated daily on the end of day balance   

    • Total interest is credited monthly 

how-to-calculate-savings-account-interest-rate

Tax on NRE Savings Account

  • Interest earned on NRE Savings account is fully exempt from tax in India, as per the prevailing Income Tax regulations in India.

  • No Tax Deducted at Source (TDS) is applicable on the interest earned on NRE savings account.

  • Funds held in NRE Savings account are freely repatriable.

Tax on NRO Savings Account

  • Interest earned on NRO Savings Account is taxable in India.

  • Tax Deducted at Source (TDS) on NRO savings account interest earned is deducted at 30%, along with applicable surcharge and cess as per prevailing tax laws.

Things to consider before choosing an NRI savings account

  • Compare interest rates to maximize returns on your savings.

  • Note the difference in tax treatment between NRE and NRO Accounts.

  • Evaluate international money transfer facilities and forex rates.

  • Check repatriation flexibility for transferring funds overseas.

  • Assess digital banking features and ease of account management.

  • Look for dedicated NRI customer support and relationship management

Frequently Asked Questions on NRI Savings Account Interest Rates

What is the NRI savings account interest rate?

NRI savings account interest rate is the return earned on balances held in NRE or NRO accounts, calculated daily basis end of day balance and credited monthly.

Is the interest rate the same for NRE and NRO savings accounts?

Yes, the slab-wise applicable interest rates are generally the same for both NRE and NRO savings accounts. Interest is calculated on a progressive basis depending on the slabs. However, while rates may be similar, the tax treatment differs between NRE and NRO accounts.

How often is interest credited to an NRI savings account?

NRI savings account interest is credited monthly and calculated on the daily end-of-day balance. This ensures that you benefit from monthly interest credits and improved cash flow management, rather than waiting for quarterly or annual interest payouts.

What is the minimum balance required to earn interest in an NRI savings account?

There is no separate minimum threshold specifically to earn NRI savings account interest. Interest is calculated on the available daily balance in your account on a progressive basis as per the applicable slab rates. Even smaller balances qualify for interest at the slab-wise rate. 

Is TDS deducted from NRO savings account interest?

Yes, Tax Deducted at Source (TDS) is applicable on interest earned from an NRO savings account. The bank deducts TDS at 30% (plus applicable surcharge and cess), as per prevailing income tax regulations for NRIs.  

This taxation applies specifically to the NRO account interest earned on the account balances.

Can I repatriate the interest earned from my NRE account?

Funds held in NRE Savings account are freely repatriable.

Are there special interest rates for senior citizen NRIs?

Currently, senior citizen-specific special or additional interest benefits are not applicable to NRI savings accounts. Interest rates are uniform across eligible NRI customer segments and are determined based on progressive balance slabs rather than age criteria.

More FAQs

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