In this article I will be writing about the different types of Non-Resident Indian (NRI) bank accounts and services. It is the most common query which I receive from our readers. So, I planned to write down one article explaining the details about the NRI bank accounts. I hope this article will be useful for who want to open the NRI accounts. If you have any doubts please post it in the comments section. Subscribe to our future articles here.
Types of NRI Bank accounts
There are many types of NRI banks accounts available. But, here I will be explaining only the most widely used and offered by the leading banks in India. The following are the three types of NRI bank accounts offered by most of the bank across India:
- NRE Savings/Fixed Deposit Account
- NRO Savings Fixed Deposit Account
- FCNR Fixed Deposit Account
In the following section I will look into the features and benefits of the each account in details. If I miss out anything, please post it in the comments section.
NRE Savings/Fixed Deposit Account
The Non Resident External (NRE) Savings Account is meant for Indians residing abroad. It allows you to transfer foreign earnings easily to India. The following are the few important points regarding the NRE account.
- NRE account can be opened as Savings and Fixed deposit accounts.
- There is no tax on interest earned from these accounts. Also there is no wealth tax.
- That the above tax exemptions are available only for an NRE Account held by an individual and not for those maintained by OCBs (Overseas Company Bodies)
- The currency maintained in this account is Indian Rupee.
- Can open Joint account with any Non-Resident Indian. Cannot open Joint account with Indian Resident. You can easily transfer money to India.
- Nomination is allowed in NRE Accounts.
- Cannot deposit Indian Currency in to this account.
NRO Savings Fixed Deposit Account
The following are the key points on NRO account.
- NRO account can be opened as the Savings or Fixed Deposit account.
- Currency maintained in this account is Indian Rupee.
- Can open this account with any Indian Resident.
- Interest earned in this account is 30% taxable and surcharge and education cess will be included. It is applicable for both savings and fixed deposit accounts.
- You can use this account to pay any bill and expenses in India.
- Enjoy the convenience of banking at any of our branches in India.
- Nomination is allowed in NRO Accounts.
- Can deposit Indian Currency in to this account.
FCNR Fixed Deposit Account
The following are the key points for Foreign Currency Non-Resident (FCNR) Fixed Deposit bank account:
Earn Indian Interest Rates on your Foreign Currency deposits with our Foreign Currency Non-Resident Fixed Deposit.
- The entire deposit (principal and interest) is exempt from tax
- Open the deposit jointly with any other NRI
- Get an overdraft on your Savings / Current account against your FCNR Fixed Deposit
- Nomination Facility available
- Joint accounts with Indian Residents not allowed.
- Following currencies are allowed in this account:
- US Dollars
- Pounds Sterling
- Japanese Yen
- Australian Dollars
- Canadian Dollars
- Cannot deposit Indian Currency in this account.
- Minimum 1 year and maximum 5 years is allowed.
I hope this article will be more useful who are interested in opening the NRI bank accounts. If I have missed out any of the important aspect of the topic, please post it in the comments section. I know many of our readers are NRI and they already hold the NRI bank account. Please post your experience and thoughts on the NRI accounts.