ICICI Bank offers two types of rupee-denominated fixed deposit accounts for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) i.e. NRE, NRO and FCNR fixed deposits. However, many NRIs don’t know the difference between NRE and NRO fixed deposit accounts. So here is the key analysis of ICICI NRE vs NRO FD accounts.
Difference between NRE and NRO FD Account ICICI Bank
ICICI Bank NRE and NRO accounts vary from each other in terms of taxability, repatriability, exchange rate fluctuations, etc. The following table shows the differences between ICICI Bank NRE and NRO accounts.
| Particulars | NRE FD Account | NRO FD Account |
|---|---|---|
| Deposits accepted | Foreign currency can be deposited | Foreign as well as Indian currency can be deposited |
| Currency Denomination | Foreign currency funds are denominated in INR | INR denomination |
| Taxability | The deposited amount and interest earned thereon is tax free in India | Interest generated in an NRO account is subject to TDS at 30% |
| Repatriation | The entire amount in an NRE account can be freely transferred to a bank account outside India | You can repatriate up to USD 1 million in a financial year from an NRO bank account after the payment of applicable taxes |
| Joint Operations | NRE Account can be opened jointly with another NRI/PIO, a resident Indian relative (only on ‘former or survivor’ basis) | An NRO Account can be opened jointly with NRIs/PIOs, resident Indian on ‘former or survivor’ basis |
ICICI Bank NRE and NRO Account Interest Rates
Latest interest rate on ICICI Bank NRE and NRO FD accounts is as under:
| Maturity Period | NRE Account | NRO Account |
|---|---|---|
| 7 days to 14 days | – | 3.00% |
| 15 days to 29 days | – | 3.00% |
| 30 days to 45 days | – | 3.50% |
| 46 days to 60 days | – | 4.25% |
| 61 days to 90 days | – | 4.50% |
| 91 days to 120 days | – | 4.75% |
| 121 days to 184 days | – | 4.75% |
| 185 days to 270 days | – | 5.75% |
| 271 days to 289 days | – | 6.00% |
| 290 days < 1 year | – | 6.00% |
| 1 year to 389 days | 6.70% | 6.70% |
| 390 days to < 15 months | 6.70% | 6.70% |
| 15 months to < 18 months | 7.10% | 7.10% |
| 18 months up to 2 years | 7.10% | 7.10% |
| 2 years 1 day up to 3 years | 7.00% | 7.00% |
| 3 years 1 day up to 5 years | 7.00% | 7.00% |
| 5 years 1 day up to 10 years | 6.90% | 6.90% |
| 5 Years (80C FD) | – | 7.00% |
Note:
- Interest is subject to periodic changes
- For NRE fixed deposits closed before the completion of 1 year, no interest will be payable and no penalty will be levied.
ICICI Bank NRE and NRO Account Opening Process
The account opening process is the same for NRE and NRO savings accounts. NRIs can apply for an ICICI Bank NRI account online on the bank’s website or if you are in India, you can visit the nearest branch of the bank.
Which Account Should NRIs Open, NRE or NRO?
NRIs can choose between ICICI NRO and NRE FD accounts or open both accounts depending on their requirements.
ICICI NRO FD Account:
- NRO account is the only option for NRIs to deposit their income sourced in India, such as rental income, pension, dividends from investments in India, etc.
- If you are willing to sell an immovable property in India. The sale proceeds are deposited into an NRO account.
- NRO account allows you to invest in India in a hassle free manner.
- An NRO joint account allows your dependents in India to manage your expenses on your behalf.
- You can convert your regular account to an NRO account post change in your residential status.
Open NRE Account:
- ICICI Bank NRE account can be an ideal option for NRIs to deposit and maintain their foreign earnings in India.
- You can earn tax-free interest income in India on your foreign earnings.
- You can invest in India using your foreign income deposited in an NRE account to earn attractive returns.
- An NRE account allows you to transfer the entire fund back to your country of residence without any restrictions.
That said, NRIs should open both NRO and NRE FD accounts to deposit their foreign and Indian income, repatriation, investments, etc.
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