Back to Canada PortalForeign Asset Compliance
Foreign Savings & CRA Taxes
Interest rates, tax treaties (DTAA), and CRA reporting rules (Form T1135) for offshore bank accounts.
Select Your Home Country
CRA taxes Canadian residents on their worldwide income. Select your source country to load customized interest rates and tax rules:
NRE vs. NRO Fixed Deposit (FD) Rates (2026)
Indian banks offer attractive interest rates on Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts:
| Bank Name | NRE FD Rate (1-3 Yrs) | NRO FD Rate (1-3 Yrs) | Indian Tax Status |
|---|---|---|---|
| State Bank of India (SBI) | 6.75% – 7.10% | 6.75% – 7.10% | * **NRE:** 100% Tax-Free in India. * **NRO:** Subject to 31.2% TDS (reducible to 15% under DTAA). |
| HDFC Bank | 7.00% – 7.25% | 7.00% – 7.25% | |
| ICICI Bank | 7.00% – 7.25% | 7.00% – 7.25% |
Reducing NRO TDS to 15%: Submit **Form 10F** on the Indian Income Tax portal along with a **Tax Residency Certificate (TRC)** issued by the CRA (obtained by filing Form Form FT-1 or making a request letter).
Tax Estimator
Annual Interest Earned
$3,550 CAD
| CRA Taxable Status | Fully Taxable (Worldwide Income) |
| Foreign Tax Credit (Schedule T2209) | Eligible (Reduces double tax) |
Indian NRE interest is tax-free in India but fully taxable in Canada. NRO interest is subject to 15% TDS in India under DTAA (requires Form 10F + TRC) and is fully taxable in Canada, with a Foreign Tax Credit (FTC) available for the Indian tax paid.