NRIs who want to have a savings account in India, cannot operate a regular resident savings account. They need to open an NRI bank account to execute banking transactions in India. Although there are many banks you can open an NRI account with, the minimum balance required in a savings account varies from bank to bank. For example, some banks provide the facility of zero balance NRI account opening, but others require NRI to deposit minimum balance at the time of account application and maintain monthly/ quarterly balance in the account.
Zero Balance NRI Account?
Usually, banks charge a penalty for not maintaining the minimum account balance in a savings NRI account. A zero balance NRI account, on the other hand, is a savings account which the account holder can operate without maintaining minimum balance. This means there is no penalty for not maintaining the minimum account balance.
Zero and Minimum Balance Accounts for NRIs
Except SBM (State Bank of Mauritius), there are not many banks that offer a zero balance NRI account, but many banks require NRIs to maintain a very low balance starting from Rs. 1,000, like Bank of Baroda, Federal Bank, etc.
| Name of the Bank | Interest Rate (%) | Minimum Balance |
|---|---|---|
| Axis Bank | 3 – 3.50 | – Rs. 10,000 to Rs. 12,000 (easy savings account) |
| Yes Bank | 4 – 6.25 | Rs. 5,000 |
| ICICI Bank | 3 – 3.50 | Rs. 10,000 |
| Kotak Mahindra Bank | 3.50 | Rs. 10,000 |
| HDFC Bank | 3 – 3.50 | Rs. 10,000 (Metro & urban branches) & Rs. 5,000 (Semi-urban/Rural branches) |
| Bank of Baroda | 2.75 | Equivalent to Rs. 1000 |
| SBI Bank | 2.70 | Rs. 1 lakh for Metro & Urban areas and Rs. 50,000 for Semi-Urban and rural areas |
| SBM | 3.50 (up to 2 Lakhs)4 (2 lakhs to 5 lakhs)5 (above 5 Lakhs) | 0 Balance |
| Federal Bank | Up to 5% | Rs. 5,000 |
About SBM NRE Bank Account
SBM offers one of the best NRI savings account features from attractive interest rates to zero minimum monthly balance.
Key Features:
1. No minimum balance applicable for the SBM NRE account.
2. Attractive interest rates ranging from 3.50% to 5.0%.
3. Both interest and principal are fully repatriable.
4. Competitive forex rates.
5. Dedicated relationship manager to help you with everything related to NRE savings accounts.
What is an NRI Bank Account?
An NRI account is a bank account opened by a Non-Resident Indian or Person of Indian Origin (PIO) or Overseas Citizen of India (OCI), with a bank authorized by the Reserve Bank of India (RBI). NRIs can use NRI bank accounts for their several banking and investment needs in India.
What is an NRE Bank Account?
Non-Residential External Account is a rupee-denominated account and can be opened in the form of savings or current bank accounts. NRE accounts can be opened and maintained by NRIs with earnings originating from the individual’s country of current residence but shall be held in Indian rupee denominations.
NRE Bank Account Benefits:
Following are the key benefits of opening an NRI bank account in India:
1. Enables inward remittance
2. Enables investment in India
4. Tax-free in India
5. High Returns
6. Loan Facility
Getting Expert Assistance from SBNRI
Due to lots of information and documentation required to apply for NRE accounts, NRE account opening process is lengthy and cumbersome elsewhere but 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 open an NRI account. Also visit our blog and YouTube Channel for more details.
