Mumbai: Axis Bank has revised interest rates on its Non-Resident External (NRE) fixed deposits, giving Non-Resident Indians (NRIs) another option to earn comparatively higher returns on large deposits. However, the higher-rate option comes with an important condition — the money cannot be withdrawn before maturity.

The revised rates are effective from August 26, 2026, according to NDTV Profit. The bank currently offers a regular NRI Fixed Deposit as well as an NRI Fixed Deposit Plus product. While the regular option provides the possibility of premature withdrawal, the Plus variant offers higher interest rates on several tenures in exchange for locking in the deposit until maturity.

Axis Bank regular NRI FD rates

For NRE deposits below ₹3 crore, Axis Bank offers an interest rate of 6.25% per annum for tenures from one year to less than 15 months.

The rate rises to 6.45% for deposits with a tenure of 15 months to less than 18 months. For deposits with a maturity period of 18 months to less than two years, the rate is 6.50%.

The 6.50% rate also applies to longer tenures, including deposits from two years up to 10 years, according to the revised rate structure reported by NDTV Profit.

For larger deposits, the applicable rates vary depending on the amount and tenure. Deposits between ₹3 crore and less than ₹5 crore carry a rate of 6.15% across the listed tenures.

For deposits between ₹5 crore and less than ₹25 crore, the rate is 6.40% for one year to less than 15 months. The rate is 6.30% for 18 months to less than two years and 6.20% for tenures of two years and above.

Deposits of ₹25 crore and above have different rates depending on the maturity period, with rates ranging between 6.35% and 6.50%.

What is the NRI Fixed Deposit Plus option?

The NRI Fixed Deposit Plus is designed for NRE deposits of ₹3 crore and above. Its biggest attraction is the higher interest rate available on several maturity periods.

But there is a significant restriction: premature withdrawal is not permitted under the Plus option. This means an NRI choosing this product must be prepared to keep the money deposited until the agreed maturity date.

For deposits of ₹3 crore to less than ₹5 crore, the Plus option offers 6.35% across the listed tenures.

For deposits of ₹5 crore to less than ₹25 crore, the rate is 6.60% for one year to less than 15 months and 6.50% for 18 months to less than two years. For tenures of two years and longer, the rate is 6.40%.

The highest rates are available for deposits of ₹25 crore and above. Such deposits can earn 6.70% for one year to less than 15 months. The rate is 6.60% for 15 months to less than 18 months and 6.55% for 18 months to 10 years.

Regular FD versus FD Plus

The key difference between the two products is liquidity.

An NRI who chooses the regular NRI Fixed Deposit retains the possibility of withdrawing the deposit before maturity, subject to the bank’s applicable rules and charges. This flexibility can be useful when funds may be required unexpectedly.

The Plus option, in contrast, sacrifices that flexibility for a potentially higher interest rate.

For example, an NRI with ₹3 crore or more who is certain that the money will not be required during the selected tenure could consider the Plus product to earn the additional interest offered by the bank.

However, someone who may need access to the money before maturity may prefer the regular FD, even if the interest rate is slightly lower.

Why the withdrawal condition matters

The higher rate on the Plus option may look attractive, particularly for NRIs depositing large sums. But the additional return needs to be weighed against the inability to access the principal before maturity.

An FD is generally considered a relatively predictable savings instrument because the interest rate is fixed for the selected tenure. However, liquidity can become important when an investor faces an unexpected financial requirement.

Therefore, locking a substantial amount into an FD without premature withdrawal should be considered only when the investor has sufficient funds available elsewhere for emergencies and short-term requirements.

The decision is ultimately a trade-off between higher interest and greater liquidity.

Axis Bank NRI FD rates can change

Interest rates offered by banks are subject to revision. Axis Bank’s official NRI FD documentation also states that rates can change without prior notice and advises customers to check the latest applicable rates and terms before booking a deposit.

NRIs should therefore verify the applicable rate on the date of booking, particularly when dealing with large deposits or choosing between regular and non-withdrawable FD products.

The tax treatment and repatriation rules applicable to NRE deposits should also be considered separately based on the investor’s circumstances.

The bottom line

Axis Bank’s revised NRI FD structure gives large NRE deposit holders an opportunity to earn higher interest through the NRI Fixed Deposit Plus option. The catch is that premature withdrawal is not allowed.

For investors prioritising liquidity, the regular NRI FD may be more suitable despite its comparatively lower rates. For those who can comfortably lock away ₹3 crore or more until maturity, the Plus option could offer a higher return.

As with any fixed-income investment, the headline interest rate should not be the only factor. The deposit tenure, amount, liquidity requirement, applicable charges and prevailing tax rules should all be considered before making a decision.