ICICI NRE Fixed Deposit Calculator
Calculate your maturity amount and interest earned on Non-Resident External (NRE) deposits.
How ICICI Bank NRE FD Interest is Calculated
ICICI Bank calculates interest on NRE Fixed Deposits based on a quarterly compounding cycle. The NRE (Non-Resident External) account is a popular choice for NRIs because the interest earned is completely tax-free in India and the entire balance (principal + interest) is fully repatriable to your country of residence.
The standard formula used for these calculations is:
A = P [1 + (r/n)]^(n*t)
- A = Maturity Amount
- P = Principal Deposit Amount
- r = Annual Interest Rate (decimal)
- n = Number of times interest compounds per year (For ICICI, this is 4 for quarterly compounding)
- t = Time in years
Key Rules for NRE Fixed Deposits
Before using the ICICI NRE FD rates calculator, keep these essential bank policies in mind:
- Minimum Tenure: NRE FDs must be held for a minimum of 1 year. If you close the deposit before 365 days, no interest will be paid.
- Maximum Tenure: Generally, you can book these deposits for up to 10 years.
- Taxation: Interest earned in an NRE account is exempt from Indian Income Tax. No TDS (Tax Deducted at Source) is applicable.
- Currency: Deposits must be made in Indian Rupees (INR), though they can be funded by remitting foreign currency.
Example Calculation
If you deposit ₹1,000,000 (10 Lakhs) for a tenure of 2 years at an interest rate of 7.00% p.a., the quarterly compounding works as follows:
The principal is compounded every 3 months. By the end of 2 years, your maturity amount would be approximately ₹1,148,882, meaning you earned ₹148,882 in tax-free interest.
Why Use an NRE FD Calculator?
Using a dedicated ICICI NRE FD rates calculator helps you plan your financial goals with precision. Since rates vary based on the tenure (Short-term vs. Long-term), you can compare different durations to see which yields the highest return. It also helps in understanding the impact of quarterly compounding, which results in a higher effective yield compared to simple interest.