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
Related Questions
SBNRI Team
answered on 01/03/2023
An NRI or Non Resident Indian is an Indian Citizen living outside India for a minimum of 183 days in 1 financial year for the purpose of employment, business or vocation (occupation for which an individual is trained). Indian Citizens who have gone out or are staying abroad for some other purpose with an […]
SBNRI Team
answered on 12/10/2020
Indian Passport Renewal in UK Indian Passport Renewal in UK: Here’s a step-by-step guide to renew your Indian Passport in the UK Fill Online Registration Form for Indian Passport Renewal: Since 02 Jan 2018, handwritten application forms will no longer be accepted. All applications for renewal of Indian passport must be accompanied with […]
SBNRI Team
answered on 23/02/2023
NRI as per FEMA Non-Resident Indian (NRI) as per FEMA or Foreign Exchange Management Act is a person who has gone out of India or stays outside the country for the purpose of employment, business, vocation (occupation for which an individual is trained) or any other circumstances indicating his/her intention to stay outside India for […]
SBNRI Team
answered on 16/11/2020
Yes, you will be an NRI for (2020-21) since you haven’t stayed in India for 365 days or more in the previous 4 years. Regarding FCNR Deposits, you can continue them till maturity after returning to India. Post maturity, you can convert them into Resident Foreign Currency (RFC) Account. You don’t need to convert […]
