Non-Resident Indians (NRIs) who wish to have a savings account in India can’t operate a regular resident savings account. A resident account that you had before moving abroad should be converted into an NRO account. It is illegal for NRIs to hold a resident savings account. They need to open an NRI bank account to execute banking transactions in India. As per their requirements, NRIs can choose between NRE and NRO accounts. An NRE savings account allows NRIs to transfer their foreign income to India and NRO account for the income earned in India. Several Indian banks offer NRE account facilities to NRIs and PIOs. Here are the 10 best NRE savings accounts for NRIs in 2021.
Also Read: NRI Account Opening Online: 5 Simple Steps
What is an NRE savings account?
The Non-Resident External (NRE) account is Rupee denominated account that is opened with the purpose to facilitate the transfer of income received in a foreign country to India. Eligible NRIs and PIOs can open an NRE account in India with a bank authorized by the RBI (Reserve Bank of India). NRE savings account interest rates vary from bank to bank.
10 Best NRE Savings Accounts for NRIs in 2020
Here is the list of 10 best NRE savings accounts for NRIs based on NRE account interest rates, minimum balance requirements and other banking services.
|Bank Name||Interest rate (%) p.a.||Minimum monthly balance requirements|
|Axis Bank||3%||Rs. 10,000 or Rs. 25,000, depending on the account|
|Kotak Mahindra Bank||3.50%||Rs. 10,000|
|ICICI Bank||3.50% to 4.00%||Rs. 10,000|
|HDFC Bank||3% to 3.50%||Rs. 10,000 (Metro & urban branches) & Rs. 5,000 (Semi-urban/Rural branches)|
|SBI Bank||2.70%||Rs. 1 lakh for Metro & Urban areas and Rs. 50,000 for Semi-Urban and rural areas|
|Bank of Baroda||2.75%||Quarterly average balance Rs. 50,000|
|Yes Bank||4% to 6%||Rs. 10,000|
|RBL Bank||4.75% to 6.75%||Rs. 50,000|
|Citibank||2.5% to 3.75%||Rs. 80,000|
|SBM||3.50% to 5%||0 Balance|
Note: Interest rates are subject to periodic change.
Benefits of NRE Savings Account
Features and benefits of NRE accounts are as under:
- You can park your income earned outside in NRE accounts.
- Money transfers at attractive exchange rates.
- Repatriation of both principal and interest components is permissible for NRE accounts.
- Taxation rules are not applicable to NRE accounts; interest is not taxable in India.
- Banks usually provide free mandate cards and cheque books for your family in India, so that they can access your account anytime, anywhere.
- Access to internet and mobile banking services.
- NRE accounts can be held jointly with eligible NRIs.
- Funds held in an NRE account are subject to currency exchange risk.
- Most of the Indian banks offer NRI services. The features of NRE accounts, such as NRE account interest rates, minimum account balances, internet banking services, etc., slightly vary.
- You can refer to the above table for NRE savings account interest rates comparison.
10 Best NRE Savings Accounts – Key Features
Key features offered by the best banks for the NRI accounts are as under:
Axis Bank NRE Account
- You should maintain a monthly average balance of Rs. 10,000.
- You can authorize a resident to operate the account on your behalf.
- The interest rate offered by the bank starts from 3% per annum.
- Ease of operation and access to the internet and mobile banking.
Also Read: Axis Bank NRI Account Opening
Kotak Mahindra Bank NRE Account
- You should maintain a monthly average balance of Rs. 10,000 only.
- Fully and freely repatriable deposit (both principal and interest).
- The interest rate offered by the bank starts from 3.5% per annum and is paid on a quarterly basis.
- Home banking services in India.
- Kotak NRE account can be jointly opened by NRIs/PIOs only.
ICICI NRE Account
- You need to maintain a monthly average balance of Rs. 25,000 and Rs. 10,000 at the account level and customer ID level respectively.
- The interest rate offered by the bank is 3.5% for a balance less than Rs. 50 lakh and 4% for greater than Rs. 50 lakh respectively.
- Full repatriability of funds and tax-free interest in India.
Also Read: ICICI Bank NRI Account Opening
HDFC NRE Account
- A minimum balance of Rs. 10,000 in Metro/ Urban branches and Rs. 5,000 in Semi-Urban/ Rural branches is to be maintained.
- Earn higher interest rates on your NRE savings account.
- International debit card for easy cash withdrawal and shopping worldwide.
SBI NRE Account
- A minimum balance of Rs. 1 lakh in Metro/ Urban areas and Rs. 50,000 in Semi-Urban/ Rural areas is to be maintained.
- The interest rate offered by the State Bank of India is 2.70% p.a.
- Internet banking and SMS alert.
- International and domestic debit card.
Bank of Baroda NRE Account
- Quarterly average balance of Rs. 50,000 is to be maintained by the account holder.
- Free debit card, cheque book and 24×7 account through internet banking facility available.
- Free re remittance facility if beneficiary maintenance account with any of the branches in India.
- Tax exemption on interest earned.
Yes Bank NRE Account
- A minimum balance of Rs. 10,000 is to be maintained by depositors.
- Attractive interest rate from 4% to 6% per annum.
- Dedicated personal relationship manager is assigned to account holders.
RBL Bank NRE Account
- An average balance of Rs. 50,000 is to be maintained by account holders.
- It is one of the best NRE savings accounts in terms of interest payment running from 4.75% to 6.75% p.a.
- Account opening process is completely digital.
- International debit card, free SMS alert, internet banking services are available.
Also Read: RBL Bank Full Form: Ratnakar Bank Limited
Citibank NRE Account
- A minimum balance of Rs. 80,000 is to be maintained in the NRE account. Although the amount varies from country to country.
- NRE account holders get a free platinum debit card.
- Interest is computed on the basis of daily closing balance at 2.75% to 3.75% interest rate.
SBM NRE Account
- Earn attractive interest rate up to 5% p.a. on an NRE savings account.
- Both interest and principal are fully repatriable.
- Dedicated relationship manager to help you with everything related to NRE savings accounts.
Best NRI Account in India: 10 Best NRE Savings Accounts
Choosing the best NRI Account in India can be a tough task. There are certain perks offered by different banks in India. You can choose the best NRI Account in India as per your needs. In this article, since we are discussing the NRE Account, let’s see which bank has the best NRE Account in India.
Best NRE Account in India
Choosing the Best NRE Account in India requires understanding your objectives. Initially, NRE Accounts are used to maintain the income earned abroad by an NRI. However, different banks offer different interest rates, ease of account opening, maintenance facilities, remittances and other such features that differentiates them. You can select the best NRE Account as per your needs. Connect with our Expert using the ASK Platform on the SBNRI App for understanding which NRE Account will suit you the best. Download SBNRI App Now!
Best Bank for NRE Account
You can select the best bank for NRE Account based on the services and benefits offered by the top banks in India. At SBNRI, we have selected the top 5 banks that offer a wonderful overall experience to NRIs in terms of NRI Account Opening and maintenance when applied with SBNRI. Most of these banks are not the conventional banks but rather mid-sized neo banks:
- State Bank of Mauritius (SBM)
- IndusInd Bank
- Kotak Mahindra Bank
- RBL (Ratnakar Bank Limited)
- Federal Bank
Apart from the above mentioned banks, you can always opt for these banks as they are the largest and have a more defined global presence:
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Axis Bank
- Punjab National Bank (PNB)
NRE Savings Account Interest Rates Comparison: 10 Best NRE Savings Accounts
At SBNRI, we provide the latest NRE Savings Account Interest Rates Comparison for ease and convenience of NRIs. You can check out the latest NRE FD and NRI Savings Account Interest Rates and FCNR Deposit Rates on our blog. We update the rates every month as it changes with the bank.
10 Best NRE Savings Accounts: Getting Expert Assistance at SBNRI
Due to lots of information and documentation required to apply for NRE accounts, NRE account opening process is lengthy and cumbersome elsewhere but you can download SBNRI App to apply for an NRE account with nominal documentation in just 10 minutes.
10 Best NRE Savings Accounts: FAQs
An NRE or Non-Resident External savings account is a Rupee-denominated savings account opened by NRIs (Non-Resident Indians) to park their foreign earnings. Interest earned in an NRE account is completely tax free in India. Funds (principal and interest earned) in an NRE account are fully repatriable.
It depends on your requirements. You can compare the features of NRI accounts offered by multiple banks to find the best. For example if you want to open an account with a top bank you can compare the features of SBI NRI account, HDFC NRI account and ICICI NRI account. However in terms of interest rate and minimum balance, SBM, Kotak Mahindra NRI accounts can be a smart choice.
While NRE and FCNR(B) accounts can be opened only by NRIs and PIOs, foreign nationals coming to India as a tourist or for employment are also eligible for an NRO account.
Only foreign currency can be deposited in an NRE account and the account converts it into the Indian Rupee (INR). The NRI account holder can withdraw money from his NRE account in INR (Indian Rupee). The family members or whoever has access to the account in India can withdraw money.
If you are in India, you can visit a bank in India to open an NRI account. To open an NRI account online, you can download SBNRI App or visit SBNRI.com and apply for the account seamlessly.
Key benefits of an NRI account are as under:
– You can deposit and manage your income earned abroad and in India.
– Free funds transfer at attractive exchange rates (in case of NRE account)
– No need to maintain high balances in NRE and NRO accounts.
No, an NRE account is tax-free in India – income tax, wealth tax and gift tax are not applicable.