NRO and NRE savings accounts enable NRIs to carry out financial transactions in India. An NRO or Non-Resident Ordinary account can be opened by NRIs to deposit the income they earn in India, such as rent, pension, dividends, and any other income sourced in India. NRE account, on the other hand, is a savings account that NRIs need to open to save and manage the money they earn in a foreign currency. Here are top 10 NRO and NRE accounts in India for saving their earnings sourced in India and abroad.
Top 10 NRO and NRE Accounts in India 2023
Here are top 10 banks where NRIs can deposit their money, earned in India and overseas, and earn attractive interest rates.
SBNRI is a business partner of leading Indian banks. An NRI can apply for an NRE/ NRO account with one of these Banks by clicking the button below.
Top 10 NRO Accounts in India
Here is the list of 10 banks for the best NRO accounts in India for NRIs based on interest rates, minimum balance requirements and other banking services.
| Bank Name | NRO Savings Account Interest Rates | NRO Savings Account Minimum Balance |
|---|---|---|
| Axis Bank | – 3.00% (Balance < Rs. 50 Lacs) – 3.50% (Balance > 50 Lakhs to Rs. 800 cr.) | – Easy Savings Account- Rs. 12,000 (metro/urban areas) – Rs. 10,000 (other areas) – Prime Savings Account- Rs. 25,000 |
| Federal Bank | 3.05% – 6.00% p.a. | Rs. 1,000- Rs. 1,00,000 |
| HDFC Bank | – 3.50% (Balance >= Rs. 50 lakh) – 3% (Balance < 50 Lakhs) | – Rs. 10,000 (Metro & urban branches) – Rs. 5,000 (Semi-urban/Rural branches) |
| DBS Bank | 3.5% | Rs. 25000 |
| IndusInd Bank | 4.00% – 6.00% p.a. | – Rs. 10,000 – A & B category branches – Rs. 5000 – C & rural category. |
| ICICI Bank | – 3% p.a. (Below Rs. 50 Lakhs) – 3.5% p.a. (Equal to or above Rs. 50 lakh) | Rs. 10,000 at account level or Rs. 25,000 at customer ID level |
| Kotak Mahindra Bank | 3.50% | Rs. 10,000 |
| State Bank of India | – 2.70% p.a. (Balance < Rs. 10 cr – 3.00% p.a. (Balance =>Rs. 10 cr) | – Rs. 1 lakh for Metro & Urban areas – Rs. 50,000 for Semi – Urban and rural areas |
| RBL Bank | 4.00% – 7.00% p.a. | Rs. 50,000 |
| Yes Bank | – 4% (up to 1 lakh) – 4.25% (Rs. 1 lakh to 5 lakh) – 5% (Rs. 5 lakh to 10 lakh) – 6% (Rs. 10 lakh to Rs. 1Cr) – 6.25% (Rs. 1 cr to 10 cr) – 6.00% (Rs. 10 cr to Rs. 25 Cr) | Rs. 10,000 |
Top NRE Accounts in India
Here is the list of 10 banks that offer best NRE accounts in India for NRIs based on interest rates, NRE account minimum balance and NRI customer care banking services.
| Name of the Bank | Interest Rate | NRE Account Minimum Balance |
|---|---|---|
| Axis Bank | – 3% (Balance <50 Lakhs) – 3.50% (Balance => 50 Lakhs to Rs. 800 cr.) | – Easy Savings Account- Rs. 12,000 (metro/urban areas) – Rs. 10,000 (other areas) – Prime Savings Account- Rs. 25,000 |
| HDFC Bank | – 3.50% (Balance => Rs. 50 lakh) – 3% (Balance < Rs. 50 Lakhs) | – Rs. 10,000 (Metro & urban branches) – Rs. 5,000 (Semi-urban/Rural branches) |
| Federal Bank | 3.05% – 6.00% p.a. | Rs. 1,000- Rs. 1,00,000 |
| Bank of Baroda | 2.75% | QAB: Rs. 50,000. |
| Syndicate Bank | – 3.25% (Balances up to Rs. 50 lakhs) – 3.75% (Balances of over Rs. 50 lakhs) | – With cheque book: Rs. 500 for rural areas, Rs. 1000 for urban areas. – Without cheque book: Rs. 100 for rural areas, Rs. 500 for urban areas. |
| IndusInd Bank | 4.00% – 6.00% p.a. | – Rs. 10,000 – A & B category branches – Rs. 5000 – C & rural category. |
| Kotak Mahindra Bank | 3.50% | Rs. 10,000 |
| SBM | – 3.50% (up to 2 Lakhs) – 4% (2 lakhs to 5 lakhs) – 5% (above 5 Lakhs) | 0 Balance |
| State Bank of India | – 2.70% p.a. (Balance< Rs. 10 cr) – 3.00% p.a. (Balance => Rs. 10 cr) | – Rs. 1 lakh for Metro & Urban areas – Rs. 50,000 for Semi-Urban and rural areas |
| Yes Bank | – 4% (up to 1 lakh) – 4.25% (Rs. 1 lakh to 5 lakh) – 5% (Rs. 5 lakh to 10 lakh) – 6% (Rs. 10 lakh to Rs. 1Cr) – 6.25% (Rs. 1 cr to 10 cr) – 6.00% (Rs. 10 cr to Rs. 25 Cr) | Rs. 10,000 |
| RBL Bank | 4.00% to 7.00% p.a. | Rs. 50,000 |
Difference between NRE and NRO Account
While both NRE and NRO bank accounts are meant for Non-Resident Indians, they have different features and serve different purposes. Here is the analysis of NRE vs NRO accounts. analysis.
| Particulars | NRE Account | NRO Account |
|---|---|---|
| Purpose | For NRIs to park overseas earnings in India | Allows NRIs to manage Indian income or earnings like pension, rent, dividend, etc. |
| Account Type | Savings, Recurring, Current and FD | Savings, Recurring, Current and FD |
| Currency Denomination | INR | INR |
| Repatriability | Fully repatriable (interest and principal) | Repatriation up to USD 1 million in a financial year from an NRO account after payment of all the applicable taxes. |
| Taxability | Interest earned and principal amount are tax-free in India | The interest earned on an NRO account is subject to TDS. |
| Joint Holding Facility | Can be held jointly by two NRIs or an NRI and a resident Indian (only former or survivor basis) | Can be opened by two or more NRIs or NRIs and resident Indians |
| Exchange Rate Risk | Affected by exchange rate risks such as fluctuations and conversion losses/gains. | INR deposits are not affected by daily exchange rate fluctuations |
How to Choose the Right NRI Account?
As mentioned earlier, features and benefits of an NRE and NRO account vary. Here are some factors that an NRI should consider when searching for an NRI bank account in India:
- Source of Income
Before selecting between NRE or NRO savings accounts, it is important to identify the source of income for the NRI. NRE accounts are suitable for depositing foreign income or earnings to India, whereas NRO accounts are suitable for depositing income earned in India from various sources such as rent, dividends, etc.
- Savings Account Interest Rates
Interest rates on NRE and NRO accounts vary across different banks. Therefore, NRIs should thoroughly examine and compare the interest rates offered by various banks before making any investment decisions. This will help them select the bank that best meets their requirements.
- Minimum Balance Maintenance
Various banks have distinct minimum balance requirements for maintaining NRE or NRO accounts. Therefore, NRIs should opt for a bank that aligns with their financial capacity to maintain the minimum balance without becoming overburdened.
- Convenience
NRIs should select a bank that is most convenient for them. For instance, some NRIs prioritize easy accessibility of their NRE/NRO account, while others prefer a nearby branch or online banking facilities.
Due to lots of information and documentation required to apply for NRE/NRO accounts, account opening process is lengthy and cumbersome elsewhere. You can download SBNRI App to apply for an NRE 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.
