Skip to content
SmartFigure

NRI FD Calculator

Compare a fixed deposit in an NRE account with one in an NRO account. NRE interest is tax-free in India; NRO interest loses 31.2% to TDS, or less under a tax treaty. Enter the amount, rates and tax rate to see what each pays.

₹
years

NRE deposits run for at least one year.

%
%

At most large banks the NRO rate for a year or more is the same as the NRE rate.

%

31.2% is the usual TDS (30% plus 4% cess). With a tax residency certificate and Form 41, the treaty rate applies instead, e.g. 12.5% for the UAE or 15% for the US and UK.

%

Only used to show what NRE earns in your own currency. 0% if you will spend the money in India.

NRE maturity (tax-free)
₹12,13,408
NRO maturity after tax
₹11,43,861
Tax deducted on NRO interest
₹65,239
NRO return after tax
4.58% a year
NRE pays more by
₹69,547

Measured in your own currency, with the rupee falling 2% a year, the NRE deposit returns about 4.57% a year. An FCNR deposit in that currency avoids this risk, at a lower rate.

Year by year
YearNRE balanceNRO balanceNRO tax that year
1₹10,66,602₹10,45,822₹20,780
2₹11,37,639₹10,93,743₹21,732
3₹12,13,408₹11,43,861₹22,728
Share this calculationWhatsApp

NRE and NRO deposits in brief

NRE depositNRO deposit
Money that can go inMoney earned abroad, sent to IndiaIncome earned in India (rent, dividends, pension), and money sent from abroad
Tax on interest in IndiaNoneTaxed; 31.2% TDS, or the treaty rate
Sending it abroadFreely, principal and interestUp to US$1 million a financial year, after tax
Shortest tenure1 yearUnder a year allowed, from 7 days at many banks
CurrencyRupeesRupees

Current rates for both, bank by bank, are on the NRE, NRO and FCNR rates page. The best NRE rate among the banks we track is 7.10%.

How the calculator works

  • Both deposits compound quarterly, the way Indian banks calculate cumulative fixed deposits.
  • NRE interest is not taxed, so the whole amount compounds.
  • NRO tax leaves the deposit every year. The bank deducts TDS on the interest credited each financial year, so that money stops earning interest. This is why the NRO maturity falls further behind each year.
  • The rupee's fall only changes the line that measures NRE in your own currency. The rupee amounts do not change.

Worked example

You put ₹10,00,000 in a 3-year deposit at 6.5% a year. In an NRE account it grows to ₹12,13,408, tax-free. In an NRO account at the same rate, with 31.2% TDS each year, it grows to ₹11,43,861: ₹65,239 goes in tax and the return after tax is 4.58% a year. The NRE deposit pays ₹69,547 more.

If you live in the UAE and give the bank your tax residency certificate and Form 41, tax on the NRO interest falls to the treaty rate of 12.5%. The NRO deposit then grows to ₹11,85,216, with ₹26,459 in tax.

Tax on NRO interest, and how to pay less

  • TDS is 30% plus 4% cess, 31.2%, under section 393(2) of the Income-tax Act, 2025 (section 195 before April 2026). A surcharge adds more once the interest is over ₹50 lakh.
  • The treaty rate is often lower. India’s tax treaties cap tax on interest at 10% to 15% for most countries Indians live in. See the DTAA rates by country.
  • TDS is not always the final tax. If your total Indian income is below the taxable limit, file an Indian return to get the excess back. See tax for NRIs.
  • A lower deduction certificate from the Income Tax Department lets the bank deduct less before you file.

Rupee risk: NRE or FCNR?

An NRE deposit is in rupees. If you will spend the money abroad and the rupee falls, part of the interest is lost when you convert. An FCNR(B) deposit is held in a foreign currency such as US dollars, so the amount you get back in dollars is fixed, and its interest is also tax-free in India. FCNR rates are lower than NRE rates; compare them on the deposit rates page. If the money will be spent in India, the rupee's fall does not matter, and NRE usually pays more.

Frequently asked questions

Is NRE FD interest taxable in India?

No. Interest on NRE deposits is exempt from Indian income tax for as long as you are a non-resident under FEMA, so banks deduct no TDS. Your country of residence may still tax it; the US, UK and Canada, for example, tax residents on worldwide income.

How much TDS is deducted on NRO FD interest?

30% plus 4% health and education cess, 31.2% in all, and more if a surcharge applies to very large interest. You can pay the lower rate in your country’s tax treaty with India by giving the bank a tax residency certificate and Form 41 (Form 10F before April 2026).

Do NRE and NRO deposits pay the same rate?

At the 9 banks we track, yes, for deposits of a year or more: each publishes one rate card for NRE and NRO deposits. The difference is tax and repatriation, not the rate. NRO deposits can also run for less than a year; NRE deposits cannot.

Can I get senior citizen rates on an NRE or NRO deposit?

No. Every bank we checked says the extra rate for senior citizens applies only to resident Indians, not to NRE or NRO deposits.

Which is better for me: NRE or NRO?

Money you earn abroad should usually go into NRE: it is tax-free in India and can be sent back in full at any time. NRO is for income you earn in India, such as rent, dividends or a pension, which cannot be credited to an NRE account.

Sources

Last updated 13 October 2026. Results are estimates for planning only and are not investment, tax or legal advice. See our disclaimer.