Can I transfer funds from NRE to NRO account?
Yes. An NRE account allows you to transfer funds to another NRE account as well as to an NRO account. The NRE account can be opened for the purpose of maintaining the income earned outside India with tax free interest (upto 7.25%*) on Fixed Deposits. Both the principal amount and interest earned are completely repatriable from India.
Also Read: NRE to NRO Fund Transfer
What are the different types of NRI Banking Accounts?
Types of NRI Accounts
|Factors to consider||Non Resident External (NRE) Account||Non Resident Ordinary (NRO) Account||Foreign Currency Non Resident (FCNR) Account|
For income earned outside India
|For income earned from India (pension, rent etc.)|
Foreign Currency Investment in India
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
Up to 6.80%*
|Up to 7.30%*|
Up to 4.05%*
(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 on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India|
Transfer of funds from NRE to NRO Account
The different types of NRI Banking Accounts operate differently, you can transfer funds from NRE to NRO Account and other transactions can be carried out between these accounts. To know about the process of opening an NRE Banking account, click here.
Also Watch: Best NRI Bank Account to understand the benefits of every NRI Banking Account variant.