Rini Goel asked on 22/03/2020

What are the types of NRI accounts?

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SBNRI Team
answered on 22/03/2020

Refer to the table below to understand about the various types of NRI Accounts:

Types of NRI Accounts: NRI Banking 2020

Types of NRI Accounts

Factors to consider Non Resident External (NRE) Account Non Resident Ordinary (NRO) Account Foreign Currency Non Resident (FCNR) Account
Purpose

For income earned outside India

For income earned from India (pension, rent etc.) 

Foreign Currency Investment in India

Currency

INR

INR

USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF

Tenure of Deposits

1 year to 10 years

7 days to 10 years

1 year to 5 years

Interest

Up to 7.95%*

Up to 7.30%*

Up to 3.05%*

Repatriation

(transfer of money from Indian bank account to foreign bank account) 

Both Principal (money invested initially) and Interest completely repatriable Up to a maximum of 1 million USD per financial year Both Principal and Interest completely repatriable
Tax Deductions

No tax

Tax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India

No tax

 

What are the benefits of opening an NRI Account

The benefits of opening an NRI Account are as follows:

  • Deposit money in INR or any Foreign Currency and earn tax-free interest upto 7.95%* for NRE and FCNR (Foreign Currency Non-Resident) Accounts 
  • The interest earned on the deposit is not taxable in India
  • Earn a higher rate of interest as compared to the local banks abroad
  • Both the principal amount and the interest are fully and freely repatriable for NRE and FCNR Accounts

 

Open NRI Bank Account Now

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