There are two popular types of bank accounts for Non-Resident Indians (NRIs) – NRE (Non-Resident External) account and NRO (Non-Resident Ordinary) account. Both accounts can be opened by NRIs to save and manage their earnings in a rupees-denominated account. Almost all Indian banks have NRE and NRO savings accounts for Indians living abroad. NRI account interest rates vary from bank to bank.
NRI Account Interest Rates 2021: Top Bank Accounts
When you deposit money in an NRI account, you earn interest on that account. While each bank has a different range of interest for NRI savings accounts and FDs, the average NRI account interest rates range from 2.50% to 6% p.a. In the next segment, let’s explore the top bank accounts and the top bank interest rates offered on savings and tax-free NRI deposits.
Top 10 Bank Accounts with highest NRE Savings and FD Interest Rates
Let’s take a look at the top 10 bank accounts with the top bank interest rates for NRE Savings account and Fixed Deposits:
|Bank Name||NRE/ NRO savings A/C interest (p.a.)||Tax-Free NRE FD Rates|
|Bank of Baroda||2.75%||5.25%*|
|Punjab National Bank (PNB)||3%*||5.25%*|
|HDFC Bank||– 3.00% for balance below Rs. 50 lakh|
– 3.50% for balance equal to Rs. 50 lakh and above
|ICICI Bank||– 3.50% for balance below Rs. 50 lakh|
– 3.50% for balance equal to or above Rs. 50 lakh
|Kotak Mahindra Bank||Up to 3.50%||5%*|
|State Bank of India||2.70%||5.40%*|
|State Bank of Mauritius (India)||3.50% to 5.00%||6.50%*|
|Yes Bank||4.00% to 5.25%||6.50%*|
Note: NRI account interest rates are subject to periodic changes.
NRI Account Interest Rates: An Overview
NRI Account Interest Rates or simply understood as the rate of interest for NRI Account can be understood as a percentage of the funds you deposit in the account that you will earn as interest on the funds which will be paid to you (quarterly or yearly). This interest is compounded to give you the benefits.
NRI Bank Account Interest Rates
You can get up to 7%* interest on your NRI Bank Accounts and Fixed Deposits. The NRI Bank Account Interest Rates on savings and FDs are tax-free in case of a NRE Account as it is used to maintain the funds you earn abroad. Check out the latest NRE FD and Savings Account Interest Rates here: Latest NRE FD and NRI Savings Account Interest Rates
Best NRI Interest Rates
Tal to our experts and understand which bank account and FD is best for you. The Best NRI Interest Rates can be utilized to their benefit and tax-free interest can be earned seamlessly. Also Loan against Deposits are available for NRIs that substantially bring down the interest rates you pay on your loan as you keep on earning interest on your deposits. Connect with our expert using the button below or download the SBNRI App to access the ASK Platform for 24×7 expert availability.
Key features of NRI accounts
- NRE accounts are opened to deposit foreign earnings of NRIs.
- Both principal and interest earned are fully repatriable.
- NRE accounts can be opened jointly with other NRIs.
- NRE savings account (both principal and interest earned) is not taxable in India.
- NRE account interest rates vary from bank to bank, for example SBI NRE interest rate is 2.70% and the interest rates for HDFC NRE account range from 3% to 3.5%.
- A rupee-denominated account to park both Indian and foreign earnings of NRIs.
- The interest earned in an NRO savings account can be transferred without restrictions. However, the principal amount has limited repatriability. You can repatriate up to 1 million USD in a financial year.
- Profit earned in the NRO account is taxed at 30% plus 3% cess.
- NRI can jointly open an NRO account even with an Indian resident.
- No exchange rate risk in NRO savings accounts unless the deposit is made in a foreign currency.
How to open NRI account online
You need to take the following steps to open an NRI account online:
Step 1: Fill up the NRI account opening form online (if available), else you can download and fill the hardcopy.
Step 2: Upload or attach the supporting documents along with the NRI account opening form.
Step 3: Requirements for attestation may vary from bank to bank. Usually, along with self-attestation, applicants need to get the documents required during the NRI account opening process attested by any of the authorized entities. For example, SBI NRI account opening form and documents should be attested by any of – an overseas branch of the bank, Indian High Commissio/ Consulate/ Embassy, etc.
Step 4: The applicant has to courier the complete set of documents to a bank branch in India. Some banks also have a door-step pick-up facility for document collection.
Also Read: NRI Account Opening Online: 5 Simple Steps
NRI account opening online using the SBNRI App
You can seamlessly open an NRI account online in just 10 minutes. Here are 3 quick and simple steps you need to take to open NRI account through the SBNRI app:
- Download the SBNRI App from the App Store and Google Play Store.
- Sign in using your credentials.
- Go to ‘Open NRI Account’ section and select the bank.
- Scan and upload KYC documents using the in-app scanning feature.
- Click on ‘Apply’ and that’s it.
Documents required for NRI account opening
Documentation for NRI account opening may slightly be different from bank to bank. But in the SBNRI App, you just need 4 documents. Here you go:
- Visa (Latest and Valid)
- Overseas Bank Statement
- PAN Card (Form 60 if PAN not available)
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.
NRE account interest rate will depend on the bank you open the account with. For example, HDFC NRI account interest rates (for NRE and NRO accounts) range from 3.00% to 3.50% per annum and State Bank of India pays 2.70% interest on an NRE account.
Because of nominal risk and good returns, NRE fixed deposits are one of the safest and most popular investment options among the Non-Resident Indians (NRIs).
Yes, you can withdraw money from your NRE account in India and abroad as well.
Yes, an NRI can send money to his wife in India. There is no tax implication for transferring funds to your wife’s bank account in India.