Canada is one of the most popular foreign destinations among Indian citizens for employment, education and even permanent settlement. Indian diaspora accounts for a large population of Canada. NRIs (Non-Resident Indians) and PIOs (Persons of Indian Origin) have to open an NRI account to do various financial and banking transactions in India, such as fund transfers, mutual fund investments, home loan applications, etc. You can apply for NRI account opening online or visit a branch of the bank where you want to open an NRI account. Let’s look at where and how to apply for an NRI account for Indians in Canada.
Also Read: NRI Account for Indians in USA: Top 5 Banks for NRI Accounts
NRI Account Opening in Canada
Several public and private sector Indian banks operate in Canada through their overseas branches/ offices or subsidiaries. Some of the banks that offer an NRI account for Indians in Canada are State Bank of India, ICICI Bank, Axis Bank, Citibank and HDFC Bank. NRIs can open a Non-Resident External (NRE) account or Non-Resident Ordinary (NRO) account or both based on their transactional requirements. NRI account opening process, NRE/NRO interest rates, and documentation vary from bank to bank. As per your convenience, you can apply for NRI account opening online or visit the nearest branch of the bank for the same.
Best NRI Accounts in India
Here are some of the best NRI accounts for Indians in Canada based on the application process, interest rates and minimum balance requirements.
| NRI Account | Interest rate (%) p.a. | Minimum monthly balance requirements |
|---|---|---|
| ICICI Bank | 3% – 3.50% | Rs. 10,000 |
| SBI Bank | – 2.70% (for balance less than Rs. 10 cr) – 3.00% (for balance Rs. 10 cr and above) | – Rs. 1 lakh for metro & urban areas – Rs. 50,000 for Semi-Urban and rural areas |
| HDFC Bank | 3% – 3.50% | – Rs. 10,000 (Metro & urban branches) – Rs. 5,000 (Semi-urban/Rural branches) |
| Axis Bank | – 3% (Balance below 50 Lakhs) – 3.50% (Balance above 50 Lakhs to Rs. 800 cr.) | Rs. 10,000 or Rs. 25,000 (Based on the account) |
| Kotak Mahindra Bank | 3.50% | Rs. 10,000 |
| SBM | – Balance up to Rs. 2 lakh: 3.50% – Balance > Rs. 2 lakh to Rs. 5 lakh: 4.00% – Balance above Rs. 50 lakh: 5.00% | 0 Balance |
Note: Interest rates are subject to periodic changes
ICICI NRI Account for Indians in Canada
ICICI Bank could be an ideal choice if you are looking for the best NRI account in India. The bank offers a comprehensive range of banking products and services for domestic as well as NRI customers through a variety of delivery channels. ICICI Bank has subsidiaries in Canada to cater to NRI customers. Canadian NRIs can open an ICICI NRI account online or visit a branch of the bank for the same if possible.
ICICI NRI Account Key Features
ICICI NRE Account
- Interest earned is tax-free in India.
- Money parked in ICICI NRE accounts is fully and freely repatriable.
- Low minimum monthly balance required i.e. Rs. 10,000 only.
- 4% per annum interest for end of day balance equal to or more than Rs. 50 lakh and 3.5% per annum for a balance of below Rs. 50 lakh.
- Money transfers through various online and offline modes at competitive exchange rates.
ICICI NRO Account
- Low monthly account balance requirement i.e. Rs. 10,000 only.
- 4% per annum interest for end of day balance equal to or more than Rs. 50 lakh and 3.5% per annum for a balance of below Rs. 50 lakh.
- Interest earned in the current financial year is fully repatriable after payment of applicable tax. Up to USD 1 million funds can be repatriated per financial year from NRO account.
- Joint account holding with an Indian resident or eligible NRI.
SBI NRI Account for Indians in Canada
Largest public sector Indian Bank, State Bank of India offers a variety of NRI banking services to Indians living around the world. Indians residing in Canada can apply for SBI NRI account opening online as well as offline. The bank offers different types of NRI accounts i.e. SBI NRE account, NRO account, RFC account, and FCNRB account.
SBI NRI Account Benefits
SBI NRE Account
- Interest earned on SBI NRE accounts is exempt from income tax in India.
- Indians in Canada can park their overseas earnings in an NRE account in Indian rupees (INR).
- Rupee loan available against NRE deposits.
- Open SBI NRE account individually or jointly with other NRIs/ PIOs/ OCIs.
- SBI NRE interest rate is 2.70% per annum.
- Minimum monthly balance required to maintain an SBI NRE account is Rs. 1 lakh for metro and urban areas, Rs. 50,000 for semi-urban and rural areas.
SBI NRO Account
- To park income earned in India by NRIs.
- You can open an SBI NRO account individually or jointly with other NRIs/ PIOs and resident Indians on a ‘former or survivor’ basis.
- Interest earned is subjection to deduction of tax at 30.90%
- Rupee loan is available against SBI NRO deposits.
HDFC NRI Account for Indians in Canada
HDFC NRI banking services are one of the best in the industry. Indians staying in Canada can open HDFC NRI accounts for their India-based transactional needs. HDFC Bank NRI accounts include NRE accounts and NRO accounts.
Key features of HDFC NRI account
HDFC NRE Account
- NRIs can freely transfer funds from Canada to India using their HDFC NRE account.
- Interest earned on an NRE account is exempt from income tax in India.
- HDFC NRE interest rates range from 3% to 3.5% per annum.
- HDFC NRI banking customers can enjoy several digital banking services from Canada.
- International debit card for global shopping experience.
HDFC NRO Account
- Funds transfer in HDFC NRO account is converted to INR at the current foreign exchange rate.
- HDFC NRO account interest rates range from 3% to 3.5% per annum.
- Low minimum monthly balance required starting from as low as Rs. 10,000 in metro and urban branches and Rs. 5,000 in semi-urban and rural branches.
- Account holders can enjoy a host of HDFC NRI banking services.
- NRIs can appoint a resident Indian as a mandate holder to operate their NRO account in India.
Axis Bank NRI Account for NRIs in Canada
Axis Bank extends an array of NRI banking services to Indians living in foreign countries. Axis Bank NRI account is one of the best NRI accounts in India. Benefits of NRI account opening in Axis Bank are as under.
Key features of Axis NRI Account
Axis NRE Account
- Interest on funds is not taxable in India.
- Funds are fully repatriable.
- Access to Axis Bank internet and mobile banking services.
- Axis NRE account interest rate is 3% per annum.
Axis NRO Account
- Axis Bank offers 3% per annum interest rate on NRO accounts.
- Full repatriability of interest after payment of applicable tax.
- Parents/ close relatives can operate the NRO account in absence of the NRI.
- Axis Bank NRI account minimum balance requirement ranges from Rs. 10,000 to Rs. 25,000.
Kotak Mahindra NRI Account
Kotak Mahindra bank is a next-gen private sector bank that offers several NRI banking services to Indians living abroad. NRE account and NRO account are two NRI accounts extended by Kotak Mahindra Bank. You can apply for NRI account opening online on Kotak Mahindra Bank’s official website.
Key features of Kotak NRI Account
Kotak NRE Account
- Hassle-free and economical funds transfer to India via wire transfer, cheques, etc.
- Kotak Mahindra NRI account minimum balance requirement is Rs. 10,000 for NRE accounts.
- Interest earned on a Kotak NRE account is not taxable in India.
- Full repatriability of funds (principal and interest).
- Kotak NRE account interest rate is paid on quarterly basis at 3.5% p.a.
Kotak NRO Account
- Easy and economical funds transfer via cheque or wire transfer.
- Kotak NRE account interest rate is paid on quarterly basis at 3.5% p.a.
- Principal component of Kotak NRO account is exempt from taxes in India. However, interest earned is subject to a tax of 30% + applicable surcharge and cess.
- Interest earned is repatriable after deduction of applicable tax. You can repatriate up to USD 1 million or equivalent each financial year.
SBM NRI account for NRIs in Canada
SBM offers one of the best NRI savings account features from attractive interest rates to zero minimum monthly balance. Here are the benefits of SBM NRI accounts.
Key features of SBM NRI account
SBM NRE savings account
- Attractive interest rates ranging from 3.50% to 5.00% per annum.
- Tax-free returns.
- Full repatriability.
- Dedicated relationship manager.
- Competitive forex rates.
SBM NRO savings account
- Attractive savings account interest rates up to 5% per annum.
- Competitive forex rates.
- SBM NRO accounts can be opened jointly by NRIs and PIOs.
- SBM World debit card is offered to complement your lifestyle.
How to open NRI account in Canada
You can apply for an NRI bank account online as well as offline. Visit the official website of the respective bank to fill the NRI account opening form online and follow the instructions. If you are in India, you can visit a bank branch where you want to open an NRI account.
Alternatively, you can apply for NRI account opening online through SBNRI app. Here are the steps you need to follow to apply for an NRI account on the SBNRI app:
- Download the SBNRI app from the Google Play Store or App Store.
- Sign in using your credentials.
- Click the ‘Open NRI account’ button and select the bank with which you wish to open an NRI bank account from the bank list.
- Scan and upload KYC documents using the in-app scanning feature.
- Click on ‘Apply’ and you are done.
Due to lots of information and documentation required to apply for NRI accounts, NRI account opening process is lengthy and cumbersome elsewhere. You can download SBNRI App to apply for an NRI account with nominal documentation in just 10 minutes.
You can also click on the button below to apply for an NRI account. Visit our blog and YouTube Channel for more details.
FAQs
Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) can open an NRI account in an RBI-registered bank in India.
There are several benefits of opening an NRI account, such as attractive interest rates, tax-free returns on NRE account, free repatriability, and a lot more.
There is no upper limit on the upper transaction from NRE and FCNR accounts. However, NRIs can remit up to $1 million in a financial year from an NRO account.
The documentation may slightly vary from bank to bank. Here is the checklist of common documents required to open an NRI account:
– Address proof of overseas and India
– Copy of Indian PAN card or Form 60
– Recent passport size colored photograph
– Copy of valid passport
– Copy of visa/ work permit
– One document containing either an overseas or Indian address
