Shashank Kapoor asked on 22/03/2020

What are the benefits of opening an NRI Account?

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SBNRI Team
answered on 22/03/2020

Benefits of opening an NRI Account: Tax free Interest up to 7.95%

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

Open NRI Bank Account Now

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