What are the benefits of opening an NRI Account?
The benefits of opening an NRI Account are as follows:
- Deposit money in INR or any Foreign Currency and earn tax-free interest upto 7.95%* for NRE and up to 3.05%* for FCNR (Foreign Currency Non-Resident) Accounts
- The interest earned on the deposit is not taxable in India
- Earn a higher rate of interest as compared to the local banks abroad
- Both the principal amount and the interest are fully and freely repatriable for NRE and FCNR Accounts
Can OCIs have an NRI Account?
Yes, OCIs can open NRE/NRO/FCNR accounts in India as they are entitled to similar benefits as NRIs. OCIs can also enjoy the benefits of opening an NRI Account. Here is an overview of the accounts for you to choose the best account as per your needs:
Factors to consider | Non Resident External (NRE) Account | Non Resident Ordinary (NRO) Account | Foreign Currency Non Resident (FCNR) Account | |
Purpose | For income earned outside India | For income earned from India (pension, rent etc.) | Foreign Currency Investment in India | |
Currency | INR | INR | USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF | |
Tenure of Deposits | 1 year to 10 years | 7 days to 10 years | 1 year to 5 years | |
Interest | Up to 7.25%* | Up to 7.30%* | Up to 3.05%* | |
Repatriation (transfer of money from Indian bank account to foreign bank account) | Both Principal (money invested initially) and Interest completely repatriable | Up to a maximum of 1 million USD per financial year | Both Principal and Interest completely repatriable | |
Tax Deductions | No tax | Tax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India | No tax |