New NRI - Types of accounts FAQs

Saving Accounts


As an NRI you can open accounts in INR and/or in a foreign currency. These can be in the form of savings accounts. 

 

  • Non-Resident External (NRE) Account:
    • A savings account to maintain income earned outside India
    • Get tax-free interest in India and
    • Principal amount and interest earned are fully repatriable from India
    • Domestic credits are not allowed. To know more, click here.
  • Non-Resident Ordinary (NRO) Account:
    • A savings account to manage your income earned in India such as income received from rent, dividends, pension etc.
    • Repatriation from India only up to One Million United States Dollar (USD) per financial year for bonafide purposes like education, medical expenses and similar expenses
    • 30% tax + applicable surcharge +education cess deducted at source on interest earned in India. To know more, click here

 

As an NRI, you can open both NRE/NRO accounts to maintain your funds in India & Overseas. If you select both accounts, while filling the form, it will save you the hassle of sending forms / documents repeatedly.

 

Fixed Deposit Accounts


As an NRI you can open accounts in INR and/or in a foreign currency. These can be in the form of fixed deposit accounts.

 

  • Foreign Currency (Non –Resident) Accounts (Banks) (FCNR (B) Accounts:
    • A Term deposit account in US Dollars, GBP, EUR, JPY, AUD, CAD, SGD, HKD and CHF.
    • Fixed tenures of upto 12 months, 36 months and 60 months.
    • Interest income is not taxable in India.
    • Principal amount and interest earned are fully repatriable. To know more, click here.
  • Non Resident (External) Fixed Deposits Account:
    • A Term Deposit account in INR
    • Tenure can be from a minimum of 1 year up to a maximum of 10 years.
    • Get competitive exchange rates on conversion of your foreign currency into INR.
    • Can be funded with any convertible currency.
    • Interest earned is not taxable in India.
    • You enjoy full repatriability of investment including interest with NRE FD.
    • Click here to explore the product
  • NRO (Non–Resident Ordinary) Fixed Deposit Account:
    • A Term Deposit Account can be jointly held with residents as well as Non-resident.
    • Multiple tenure option ranging from 7 days to 10 years.
    • Interest earned in current financial year is fully repatriable (after deducting tax).
    • Funds in NRO account can be repatriated up to USD one million per financial year for all bonafide purposes.
    • Get competitive exchange rates on conversion of your foreign currency into rupees. Higher post tax yield can be earned by availing the DTAA facility. Click here to know more.

 

 

Quick comparison of the NRI Accounts


 

FeaturesNRENROFCNR (B) Deposits
Purpose of account To deposit overseas savings remitted to India To deposit Indian earnings like rent,Indian salary,dividend or any other current income To deposit overseas savings in foreign currency
Currency Indian Rupee Indian Rupee US Dollars, GBP, EUR, JPY, AUD, CAD, SGD, HKD and CHF.
Type Savings account,Current account,Fixed Deposits Savings account,Current account,Fixed Deposits Fixed Deposits
Joint holding Both with Resident Indians/NRIs Both with resident(as second holder)/non-resident Both with Resident Indians/NRIs
Repatriation of Principal & Interest Freely repatriable from India Repatriable from India up to USD 1.0 million or equivalent per financial year for bonafide purposes Freely repatriable from India
TDS Exempt from TDS in India Subject to TDS in India as per relevant guidelines Exempt from TDS in India
Cash Deposit Cannot be deposited Can be deposited Cannot be deposited
Mode of funding Remittance from outside India ,Foreign currency cash or cheque,transfer from other NRE/FCNR (B) Deposits Cash (rupees)/transfer from resident account/resident account cheque in addition to NRE funding methods Remittance from outside India, Foreign currency cash or cheque,transfer from other NRE/FCNR (B) Deposits
Advantages Rupee account with full repatriation benefits Account for your local funds No exchange risk