When it comes to managing finances for NRIs, ICICI Bank offers two popular account options: NRE and NRO accounts. Both accounts serve different purposes and cater to specific needs of NRIs. In this blog, we will provide an in-depth analysis of ICICI bank NRE vs NRO account.
SBNRI is a business partner of leading Indian banks. An NRI can apply for an NRO/ NRE account with one of these Banks by clicking the button below.
ICICI Bank NRI Accounts
Numerous NRIs apply for an ICICI NRI account to manage their foreign earnings and income earned in India. The two types of NRI savings accounts offered by ICICI bank are:
This choice often troubles many NRIs who are unsure about which account suits their needs. Gaining clarity on the differences between NRE and NRO accounts can help NRIs make an informed decision.
ICICI Bank NRE vs NRO Account
The table given below highlights the key differences between ICICI NRE and NRO accounts:
| Particulars | NRE Account | NRO Account |
|---|---|---|
| Full Form | Non-Resident External Account | Non-Resident Ordinary Account |
| Definition | Used to maintain foreign earnings and income earned outside India | Used to manage income generated in India (rent, dividends, or pension) |
| Deposits and Withdrawals | Deposit allowed in foreign currency, and withdrawal in Indian currency | Deposit allowed in foreign as well as Indian currency, and withdrawal in Indian currency |
| Taxability | The principal and interest earned is exempt from tax in India | Interest earned in an NRO account is subject to TDS |
| Repatriability | Allows repatriation of funds without any limit | Funds in an NRO account can be repatriated outside India with a limit of USD 1 million in a financial year (after the payment of applicable taxes) |
| Joint Operations | NRIs can open joint account with other NRI/s and operate an NRE account jointly with resident Indian on ‘former or survivor’ basis | NRIs can open NRO account jointly with other NRI/s and with resident Indian on ‘former or survivor’ basis |
ICICI Bank NRE and NRO Account Interest Rates
Interest rate on ICICI Bank NRE and NRO savings accounts is calculated on the basis of the end of the account balance in the account. Interest rate on ICICI Bank NRI account is a under:
| End of the Day Account Balance | NRE/ NRO Account Interest Rate |
|---|---|
| Less than Rs. 50 lakh | 3% p.a. |
| Rs. 50 lakh and above | 3.5% p.a. |
Note:
- Interest is subject to periodic changes
- Interest is paid quarterly in March, June, September and December
ICICI NRE vs NRO Account: Which One is Better?
The choice between an ICICI Bank NRE account and an NRO account depends on NRI’s financial objectives. Let us explore the considerations for each account to help you make an informed decision:
NRIs can choose an ICICI bank NRE account for the following reasons:
- To maintain and manage your foreign earnings and income earned outside India.
- To seek full repatriability of funds.
- For tax-free interest income, as funds in the NRE account are exempt from income tax in India.
- Preference to hold your savings in foreign currency to safeguard against fluctuations in the Indian Rupee exchange rate.
NRIs can choose an ICICI bank NRO account for the following reasons:
- To manage income generated in India, such as rent, dividends, pension, or any other Indian-sourced income.
- If someone is comfortable with partial repatriability, where the principal amount is freely repatriable but the interest earned may have restrictions on remittance.
- For investment in opportunities such as Mutual Funds, IPOs etc. on a non-repatriable basis.
- For linking one’s NRO Account to a PIS Account and trade in Indian stocks listed on a recognized stock exchange.
- To avail flexibility to open a joint NRO account with another NRI or an Indian resident (Former or Survivor Basis).
It is crucial to consider specific financial goals before making a decision. You can always consult with a financial advisor or an ICICI Bank representative to make an informed decision.
ICICI NRI Account Opening Online
Here is a step-by-step guide to apply for an ICICI NRE or NRO account online:
- Visit the NRI page on ICICI Bank’s official website and complete the lead form online.
- Shortly after, you will receive a phone call from an ICICI Bank customer service representative. He/she will guide you through the NRI account application process.
- The representative will assist you in filling out the necessary form and gathering necessary documents.
- Once you have completed the form, ICICI Bank will arrange for a convenient Free Courier Pick-Up service to collect your form.
- After the courier pick-up, you can expect to receive the documents in India within 3 working days.
- Assuming all the information provided is accurate, and the supporting documents are in order, your NRI account should be opened within 5 to 7 working days from the date of receiving the form.
NRI Account Opening through SBNRI
NRIs can choose between two options:
They can either click on the ‘Apply for NRI Account’ button within this blog or follow the steps provided below:
- Download the SBNRI app from either the Google Play Store or App Store.
- Log in to the app using your credentials.
- Navigate to the app interface and select the ‘Open NRI Account’ button.
- Utilize the in-app scanning feature to conveniently scan and upload your KYC documents.
- Click on the ‘Apply’ button to submit your application.
Contact SBNRI
Due to lots of information and documentation required to apply for NRO and NRE accounts, the 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.You can also click on the button below to open an NRI account. Also visit our blog and YouTube Channel for more details.
FAQs
There are many differences between NRE and NRO accounts. The key differences include, NRE account doesn’t accept INR deposits, is tax free and fully repatriable. An NRO account accepts both INR and foreign currency transactions, is taxable, and the amount in an NRO is not fully repatriable.
Yes, an NRI can open both NRE and NRO accounts for hassle-free banking transactions in India. You can open an NRO account to deposit income arising from sources in India and an NRE account to park the income you earn outside India.
You can transfer funds from an NRO to NRE account with a limit of USD 1 million in a financial year after payment of applicable taxes.
You can’t deposit INR cash into an NRE account. Also, you can’t transfer funds from a regular savings account to an NRE account. However, you can transfer funds from an NRO account to NRE account and from one NRE account to another.
