Top NRO Account Benefits: Updated 2024

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 2024: Updated

Let us glance through the various NRO Account Benefits one by one:

1. 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.

2. 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.

3. Carry out Investments: An NRO Account enables you to Invest in opportunities such as Mutual Funds, IPOs etc. on a non-repatriable basis.

4. Trade in Stocks: You can link your NRO Account to a PIS Account and trade in Indian stocks listed on a recognized stock exchange.

5. 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. 

6. Minimum Balance Requirement: No need to maintain high balances. Most Banks require just Rs. 10,000 as a minimum balance

7. 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.

8. Joint Account Holding: Both NRIs as well as Resident Indians can be a joint account holder for an NRO Account.

9. 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

The tax on NRO Account is charged on the interest earned in India at the rate of  30% along with surcharge and education cess. NRO Account Tax is deducted in the form of Tax Deducted at Source (TDS)

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

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