FinCalc Bharat

NRE/NRO FD Calculator

Compare Non-Resident Indian (NRI) fixed deposits, accounting for the heavy 31.2% TDS burden on NRO accounts versus tax-free NRE accounts.

Deposit Setup

Value in INR

7.2%
3 Years

Net Maturity Amount

₹12,38,721

Gross Interest

₹2,38,721

TDS (Tax)

₹0 (Tax Free)

Net Interest Keep

₹2,38,721

Repatriability

Both the principal and interest are completely, freely repatriable to your country of residence.

Maturity Breakdown

Frequently Asked Questions

What is an NRE Fixed Deposit?

Non-Resident External (NRE) FDs are opened by NRIs to deposit foreign earnings in India. The funds are fully repatriable, and the biggest advantage is that both the principal and the interest earned are completely tax-free in India.

What is an NRO Fixed Deposit?

Non-Resident Ordinary (NRO) FDs are used to manage income earned in India (like rent, dividends, pension) while residing abroad. The interest earned is fully taxable in India. A TDS of 30% (plus surcharge & cess) is deducted at source.

Can I repatriate money from an NRO account?

Yes, but there is a limit. You can repatriate up to USD 1 Million per financial year from an NRO account, subject to taxes and submitting forms like 15CA and 15CB.

Why is the TDS rate 31.2% on NRO FDs?

The base TDS rate for NRIs on NRO interest is 30%. However, education cess and surcharges are added on top, bringing the effective flat TDS rate to 31.2%. If your home country has a DTAA (Double Taxation Avoidance Agreement) with India, you can submit residency documents to potentially lower this rate.

Which one should I choose?

If you want to park foreign earnings in India, definitely use NRE for tax-free compounding. If you need to deposit Indian earnings (like rent from a property in India), you must legally use an NRO account.