What are the types of NRI accounts?
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 | ||||
| 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
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