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
When you deposit money in an NRI account, banks pay interest on savings accounts. While each bank has a different range of interest for NRI savings accounts, the average NRI account interest rates range from 2.50% to 6% p.a. Here are the NRO/ NRE account interest rates offered by top Indian banks for NRIs.
|Bank Name||NRE/ NRO savings A/C interest (p.a.)|
|Bank of Baroda||2.75%|
|DBS Bank||– 3.50% on balance up to Rs. 1 lakh|
– 4.00% on balance between Rs. 1 lakh and 5 lakh
– 3.75% on balance above 5 lakh
|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|
– 4.00% for balance equal to or above Rs. 50 lakh
|Kotak Mahindra Bank||Up to 3.50%|
|RBL Bank||4.75% to 6.75%|
|State Bank of India||2.70%|
|State Bank of Mauritius (India)||3.50% to 5.00%|
|Yes Bank||4.00% to 6.00%|
Note: NRI account interest rates are subject to periodic changes.
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. Here is the checklist of basic and common documents required to open NRI accounts:
- A copy of valid passport comprising key details such as your name, address, date of birth, date of issue, expiry date, photograph, address, signature and observation page
- One document that includes either an overseas or Indian address
- The address on the document must be the same as in the account opening form
- NRI status proof through a valid residence/ employment visa copy or work permit
- Proof of overseas and Indian address
- Copy of PAN card or Form 60
- Recent passport size colored photograph
- An initial payment cheque/ demand draft from your own account
- In case of demand draft, DD slip is mandatory
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.