Handling finances in India after acquiring the NRI Status can be a pain if you don’t know the benefits that come along with the Non Resident Ordinary (NRO) Account. In this article, we will guide you through the NRO Account Benefits and how having one can ease out your NRI Banking experience forever.
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What is NRO Account?
Before we explore the benefits of an NRO Account. Let us briefly understand what is NRO Account.
The NRO account is opened for the purpose of maintaining the income earned from India such as income from rent, pension, etc. The repatriation of the money in the account can be done up to a maximum of 1 million USD per financial year. Note: 30% tax + surcharge + education cess will be deducted at the source of interest earned in India
NRO Account Benefits 2023: Updated
Let us glance through the various NRO Account Benefits one by one:
- Handle Finances in India Easily: Maintain the income generated in India from sources such as pension, rental income etc without any hassle. An NRO Account is used to maintain the income generated in India.
- Interest on Fixed Deposits: Earn interest on the funds in the account up to 7.30%* on Fixed Deposits. Interest from Fixed Deposits is a very easy way to multiply your funds in the NRO Account.
- Carry out Investments: An NRO Account enables you to Invest in opportunities such as Mutual Funds, IPOs etc. on a non-repatriable basis.
- Trade in Stocks: You can link your NRO Account to a PIS Account and trade in Indian stocks listed on a recognized stock exchange.
- Convenient Banking: Open an NRO Account at the ease of your fingertips. The account can be opened by downloading the form online and sending the required documents to the bank branch via courier.
- Minimum Balance Requirement: No need to maintain high balances. Most Banks require just Rs. 10,000 as a minimum balance
|HDFC (AMB)||Rs.10,000/- (Metro/ Urban branches)Rs.5,000/-(Semi-Urban/Rural Branches)|
|SBI (AMB)||Rs.3,000/- (Metro/ Urban branches)Rs.2,000/-(Semi-Urban)Rs.1,000/- (Rural Branches)|
- Tenure of Deposits: Choose from a varied tenure of deposits ranging from 7 days to 10 years. Choose a tenure as per your wish and multiply your funds easily.
- Joint Account Holding: Both NRIs as well as Resident Indians can be a joint account holder for an NRO Account.
- Transfer money to NRE Account: Transfer funds from NRO to NRE account after providing proper documentation stating that all the taxes are paid on the funds being transferred to the NRE Account because both the principal and interest earned on NRE Deposits are fully and freely repatriable.
NRO Account Tax
How to Save Tax on NRO Account
NRIs can lower tax on NRO Accounts under various sections:
- Under Section 80TTA of the Income Tax Act, 1961
- NRIs can also claim benefits of DTAA
- Under Section 80C of the Income Tax Act
- Under Section 80D
- Under Section 80E
- Under Section 80G
Bank Wise Queries
Everyday so many NRIs search for bank wise NRO Account Queries. We have tried to address the top doubts and guide you through the confusions.
NRO Account SBI
NRO Account at SBI offers interest rate on NRO FD up to 5.70%*. On savings account at SBI, you can get an interest of up to 3.25% up to 1 lakhs and 3% above 1 lakh.
NRO Account HDFC
NRO Account at HDFC offers interest rate on NRO FD up to 6.25%*. On savings account at HDFC, you can get an interest of up to 3.50% below 50 lakhs and 4% above 50 lakhs.
NRO Account ICICI
NRO Account at ICICI offers interest rate on NRO FD up to 5.75%*. On savings account at ICICI, you can get an interest of up to 3.50% below 50 lakhs and 4% above 50 lakhs.
Axis Bank NRO Account
Axis Bank NRO Account offers interest rate on NRO FD up to 5.80%*. On a savings account at Axis Bank, you can get an interest of up to 3.50% below 50 lakhs and 4% above 50 lakhs.
NRO Account India: Open NRO Account with SBNRI
To open an NRO Savings Account in India you just need to download the SBNRI App and apply for the NRO Bank Account in under 5 minutes by just scanning and uploading your documents with no attestation. Check out some of the features of the NRO Account Opened with SBNRI:
NRO Account Features
Avail these splendid NRO Account features on the SBNRI App:
- Apply in under 5 minutes
- Scan and upload documents
- No Attestation Required
- Welcome Kit delivered at your overseas address
- Hassle-free maintenance and remittances
- Complete app control and much more
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NRO Account Rules
Permissible Credits in an NRO Account:
- Inward Remittances from outside India
- Interest earned on the NRO account balance
- Gifts in INR or loans taken from any resident or NRE/NRO account holder
- Transfers from your own or any other NRE/NRO account
- Any income generated in India for which the taxes are not deducted at source
The NRO account is opened for the purpose of maintaining the income earned from India such as income from rent, pension, etc.
The tax on NRO Account is charged at the source of interest earned in India at the rate of 30% along with surcharge and education cess.
Yes. Your friend can deposit money in NRO Account as gifts in INR from any resident or NRE/NRO account holder is allowed in an NRO Account.
The benefits of NRO Account are:
1. Maintain the income generated in India from sources such as pension, rental income etc without any hassle
2. Earn interest on the funds in the account up to 7.30%*
3. Invest in opportunities such as Mutual Funds, IPOs etc.
4. Link NRO Account to a PIS Account and trade in Indian stocks
5. Convenient Banking Experience
6. Joint Account Holding
7. Transfer Money to NRE Account
8. Flexible Tenure of Deposits
9. Low Minimum Balance Requirement
The minimum balance in an SBI NRO Account is Rs.3,000/- for metro/urban branches. Rs.2,000/- for semi-urban branches and Rs.1,000/- for rural branches