With RBI reducing benchmark rates the NRE FD rates have been on a decline though some banks still offer high returns.
NRE Interest is tax free but only guaranteed protected upto a maximum of 5 lac rupees just like any other bank deposits, anything over that is like a unsecured loan to the bank.
So while making a deposit try and spread the risk across different banks if possible. Yes, that means having to manage more than one bank account and if you like the convenience go for a respected and strong bank like SBI though it means lesser return.
|Indus Ind||7%||1 to 3 years|
|IDFC First||6%||500 days|
|Standard Chartered||5.60%||12 months to 21 Months|
|HDFC||5.50%||greater than 5 Years|
|DBS||5.50%||greater than 4 years|
|ICICI Bank||5.50%||greater than 5 Years|
|SBI||5.40%||greater than 5 Years|
|Kotak Mahindra||4.90%||1 year 1 month to 4 years|
When shortlisting a bank, I would not touch a co-operative bank no matter how high a rate they offer, then I would exclude small time private players, then exclude big private players who have grown too fast (remember Yes Bank), then look at Balance sheet and management and even exclude foreign banks like Deutsche and HSBC whose parent entities are struggling. If any foreign bank fails RBI is not going to save it. Lastly look if LIC has a stake in the bank, if yes, then that is a very good indicator of government support and interest (higher chance of bailout if something goes awry).
Click on the Bank Name in the table above and it will take you to the website of the Bank and if you find any other rates that are worth sharing leave a comment and I will add them to the table.