Are you on the hunt for the best NRI account in India? The world of banking and finance can be overwhelming, especially when it comes to managing your finances as a Non-Resident Indian. But fret not, because we have you covered. In this blog, we’ll unravel the mystery surrounding NRI accounts, provide insights into the top options available, and help you make a well-informed choice that aligns with your financial goals. Keep reading to unlock the key to financial peace of mind.
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What is an NRI Account?
An NRI Account is a term used to describe accounts established by individuals who are Non-Resident Indians (NRIs) or People of Indian Origin (PIOs) with a bank or financial institution authorised by the Reserve Bank of India (RBI). These institutions offer a range of services to cater to the financial needs of NRIs and PIOs.
Here are the various types of NRI Accounts available to fulfil your financial requirements:
- Non-Resident External (NRE) Accounts
- Non-Resident Ordinary (NRO) Accounts
- Foreign Currency Non-Resident (FCNR) Accounts
These accounts serve as vital tools for NRIs and PIOs to manage their finances and investments while residing outside of India.
NRE Savings Account
The Non-Resident External (NRE) Account provides a seamless avenue for transferring your overseas earnings to India. This versatile account is denominated in rupees and offers various options such as Current, Savings, Fixed, or Recurring Deposits.
Crucially, it’s important to note that the interest earned from these accounts is entirely tax-free, meaning they are exempt from taxation. Additionally, funds in NRE accounts are readily repatriable, allowing for easy transfers. These accounts can also be jointly opened with a close relative who is a Resident Indian, following a “Former or Survivor” arrangement.
Best NRE Savings Account for NRIs in 2023
| Bank Name | Interest Rates | Minimum Balance |
| Axis Bank | For below Rs. 2 Crore: 6.70% -7.00% | For Metro & Urban Locations: Rs.12,000 For Other Locations: Rs.10,000 |
| Bank of Baroda | For below Rs. 2 Crore: 6.50%- 6.75% | Rs. 1000 |
| DBS Bank | 3.5% | For the savings plus account: Rs. 25,000 |
| HDFC Bank | 3.00%-7.00% | For regular savings accounts: Metro / Urban branches: AMB Rs.10,000/-, or Fixed Deposit of Rs 1 Lakh for minimum 1 year 1 day period (w.e.f 1st Oct ’22) Semi-Urban Branches: AMB Rs.5,000/- , or Fixed Deposit of Rs.50,000 for minimum 1 year 1 day period (w.e.f 1st Oct ’22) Rural Branches: AQB Rs.2,500/-, or Fixed deposit of Rs. 25,000 for minimum 1 year 1 day period (w.e.f 1st Oct ’22) |
| ICICI Bank | For end of day account balance of below Rs.50 Lacs: 3%For end of day account balance of Rs. 50 Lacs & above: 3.5% | Rs. 10,250 |
| Kotak Mahindra Bank | On daily closing balance on your savings account: 3.5% | Rs. 10,000 |
| RBL Bank | For daily balance of up to Rs.1 lakh: 4.25% For daily balance of Rs. 200 Crore to 400 Crore: 4.00% | Average monthly balance requirement: Rs. 50,000 |
| State Bank of India | For Below Rs.2 Crore: 6.50%-6.80% | In General Branches: As per MAB (Minimum Average Balance) criteria In Personal Banking Branches: –Rs. 1 lakh for Metro / Urban areas and –Rs. 50,000 for Semi-Urban / Rural areas |
| YES Bank | For the daily balance of less than Rs. 1 Lac: 3.50% For the daily balance of Rs. 5 Cr to 25 Cr: 6.00% | Rs. 75000 |
Key Features of NRE Account Saving Banks
Here are some important features related to some of the best banks for NRE accounts for Non-Resident Indians in 2023.
Axis Bank NRE Account
- Convenient and User-Friendly Operation
- Access to Online and Mobile Banking Services
- Inclusion of Air Accident Coverage
- Personal Accident Insurance Protection
Bank of Baroda NRE Account
- Flexible Account Opening Options (Demand Drafts, Telegraphic Transfers, etc.)
- Standard Banking Services Provided (e.g., Cheque Book, Nomination Facility, and Remittance Services)
- Repatriation of Entire Funds (Principal and Interest)
- Easy Liquidity and Convertibility
- Access to Higher Loan Amounts
- Convenient Remittance Facilities
- Complimentary Credit Card
- Availability of Cheque Book Facility
- Nomination Provision for Account Holders
DBS Bank NRE Account
- Earn Attractive NRE Account Interest Rates, Up to 3.5% Per Annum, on Savings Deposits
- Complete Repatriability of Both Principal and Interest Earned
- Seamlessly Transfer Funds Worldwide via Secure Internet and Mobile Banking Services
- Joint NRE Account Option Available for NRIs and Persons of Indian Origin (PIO), Operable on Either-or-Survivor Basis
- Use NRE Account to Invest in Indian Mutual Funds
- Enjoy Tax-Free Status in India for Both Principal and Interest Earned
HDFC Bank NRE Account
- Transfer funds freely between India and other countries with applicable charges.
- Earn competitive interest rates on your NRE Savings Account.
- Pay zero tax on the interest earned in your NRE Savings Account in India.
- Access cash and make worldwide purchases with an International Debit Card.
- Appoint a resident Indian as a mandate holder for account operation.
- Manage your account conveniently with online services, including fund transfers and bill payments.
- Receive a personalised chequebook for your transactions.
- Enjoy income tax exemptions on the interest earned and freedom from wealth and gift tax liability on the NRE Savings Account.
ICICI Bank NRE Account
- Park foreign income earned outside India.
- Enjoy competitive exchange rates for free* money transfers.
- Benefit from full repatriability of funds and earn tax-free interest in India.
- Provide your family in India with a free mandate card and chequebook for convenient account access.
- Avail tax benefits as the interest earned is not taxable in India.
- Easily move funds with full and free repatriability.
- Access your account anywhere with international ATM-cum-Debit cards, granting access to 11,000+ ATMs, 3,000+ branches in India, plus phone and 24/7 online banking.
Kotak Mahindra Bank NRE Account
- Fully and freely repatriable deposit, including both principal and interest.
- Earn interest at a rate of 3.5% per annum, paid quarterly.
- Global Debit Card for access to your account on VISA ATMs worldwide.
- At Par Cheque Book provided along with 24/7 phone banking access.
- Convenient Net Banking for global account access and various transactions.
- Income Tax Exemption: The principal amount and interest earned are tax-exempt in India.
RBL Bank NRE Account
- INR denominated account.
- Tax-free interest income in India.
- Fund the account with inward remittances at favourable exchange rates.
- Full and free repatriation of funds overseas.
- Joint account ownership available with NRIs.
State Bank of India NRE Account
- International or Domestic Debit Card
- Internet banking
- SMS Alerts
- Multi-City Chequebook (MCC)
- NRI Family Card
- Permissible account types include Savings Bank, Current Account, Term Deposit, Special Term Deposit, and Recurring Deposit.
- Interest earned on NRE accounts is exempt from Indian Income tax
- Rupee loans can be availed against NRE Deposits, with a minimum tenor of 1 year and a maximum tenor of 10 years.
Yes Bank NRE Account
- The NRE Savings account is denominated in Indian Rupees (INR).
- Principal and interest are exempted from taxes in India, making it tax-free.
- Both the principal and interest are fully and freely repatriable.
- Access 1.5 million+ ATMs worldwide, along with offers, discounts, and Lost Card liability protection through the International Debit Card.
- Enjoy convenience with features like nomination and overdraft facility in the account.
- Earn unlimited reward points with YES Rewardz, redeemable for Shopping, E-Vouchers, Flights, Hotels, and more.
Benefits of NRE Account Saving Banks
An NRE Savings account offers several key advantages, including:
Read: FEMA Rules for NRI: Your Guide to Financial Compliance
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- Transferring funds into an NRE account is cost-effective.
- India does not tax the interest earned on NRE accounts.
- NRIs benefit from the convenience of mobile and internet banking provided by most banks.
- Joint holder options are commonly available for NRE accounts.
- Currency exchange risk is a consideration for NRE account holders.
- Indian banks generally provide NRE account services.
Keep in mind that interest rates, minimum balance requirements, and other essential features can differ between banks.
If you’re an NRI planning to sell property in India, it’s essential to understand the TDS implications. Read our TDS on Sale of Property by NRI blog.
NRO Savings Account
The Non-Resident Ordinary (NRO) Account serves as a primary choice for depositing Indian rupees earned within the country. Moreover, it also accommodates deposits of foreign earnings. When an Indian citizen relocates abroad for employment with the intention of residing there, their existing resident accounts must be transformed into NRO Accounts as mandated by the bank. It is, therefore, crucial to inform the bank of the individual’s departure overseas.
It’s noteworthy that NRO Accounts are denominated in rupees and come in various forms including Savings, Current, Recurring Deposits, and Fixed Deposits. These accounts offer the flexibility to be jointly opened with any Resident Indian on a “Former or Survivor” basis.
Best NRO Savings Account for NRIs in 2023
| Name of the Bank | CBelow Rs. 2 Crore | Minimum Balance |
| Axis Bank | For below Rs. 2 Crore: 3.00%-7.00% | For Metro & Urban Locations: Rs. 12,000 For All Other Locations: Rs. 10,000 |
| Bank of Baroda | For below Rs. 2.00 Crores: 3.00%-6.50% | Rs. 1000 |
| DBS Bank | 3.5% | For the savings plus account: Rs. 25,000 |
| HDFC Bank | 3.00%-7.00% | for Regular Savings account: Metro / Urban branches: AMB Rs.10,000/-, or Fixed Deposit of Rs 1 Lakh for minimum 1 year 1 day period (w.e.f 1st Oct ’22) Semi-Urban Branches: AMB Rs.5,000/- , or Fixed Deposit of Rs 50,000 for minimum 1 year 1 day period (w.e.f 1st Oct ’22) Rural Branches: AQB Rs.2,500/-, or Fixed deposit of Rs 25,000 for minimum 1 year 1 day period (w.e.f 1st Oct ’22) |
| ICICI Bank | For end of day account balance of below Rs. 50 Lacs: 3% For end of day account balance of Rs. 50 Lacs & above: 3.5% | At an account level: Rs.10000 At Customer ID level: Rs. 25,000 |
| Kotak Mahindra Bank | On daily closing balance: 3.5% | Rs. 10,000 or its equivalent in foreign currency |
| RBL Bank | For daily balance of upto Rs.1 lakh: 4.25% For daily balance of above Rs.25 lakh to 2 Crore: 7.50% | Rs. 50,000 |
| State Bank of India | For balances less than Rs. 10 Crore: 2.70% For Balances Rs. 10 Crore & Above: 3.00% | In General Branches: As per MAB (Minimum Average Balance) criteria In Personal Banking Branches: —Rs. 1 lakh for Metro / Urban —Rs. 50,000 for Semi-Urban / Rural areas |
| Yes Bank | For daily Balance <=Rs.1 Lac: 3.50% For daily Balance >=Rs. 5 Cr to < 25 Cr: 6.00% | Rs. 75000 |
Key Features of NRO Account Saving Banks
Below are the notable features of select NRO savings bank accounts designed for Non-Resident Indians in 2023.
Axis Bank NRO Account
- Ease of Operation
- Access to Internet and Mobile Banking
- Insurance Coverage: Air Accident Cover of Rs. 1 Crore & Free Personal Accident cover of up to 3 Lacs on your debit card*
- Free Unlimited Axis Bank ATM Transactions
- 5 Free Transactions at Other Bank ATMs*
Bank of Baroda NRO Account
- Opened by remittance from abroad or legitimate dues in rupees of the account holder in India.
- The existing domestic account of the resident converts to an NRO account when taking up business/employment/migration abroad.
- Close relatives can become joint account holders.
- Avail remittance facilities.
- Access to a higher loan amount.
- Avail a checkbook facility.
- Receive a free credit card.
- Provision for nomination is available.
DBS Bank NRO Account
- Funds maintained in Indian rupees (INR).
- Foreign currencies deposited are auto-converted into INR at prevailing exchange rates.
- Repatriation of up to USD 1 million (with taxes) per financial year allowed.
- DBS Infinite Debit Card with exclusive offers.
- Joint account opening with a resident Indian on a former or survivor basis is permitted.
- Ideal for placing income earned in India from sources such as rent from property, interest on fixed deposits, dividends from mutual funds, pension income, etc.
- Remit funds to and from India with preferential rates on your remittances.
- Enjoy 40+ exclusive privileges with a DBS Treasures account.
HDFC Bank NRO Account
- Easily transfer funds from abroad in a freely convertible foreign currency.
- Deposit cash in foreign currency or traveller’s cheques during visits to India.
- Effortlessly transfer money directly from your overseas bank to your NRO account.
- Move funds from an existing NRE or NRO account held with another bank in India.
- Enjoy the convenience of a debit card for cash withdrawal and shopping in India.
- Obtain an additional ATM card or domestic debit card for Mandate or POA Holders to facilitate the operation of the account.
- Avail personalised chequebooks and repatriate up to USD 1 million per financial year.
ICICI Bank NRO Account
- Deposit your earnings in Indian rupees earned in India.
- Enjoy free* money transfers at competitive exchange rates.
- Receive a free mandate card and chequebook for your family in India, granting them anytime, anywhere access to your account.
- Avail DTAA benefit facility for higher post-tax returns.
- Access low-cost and hassle-free money transfers through various online and offline modes at competitive exchange rates.
- Maintain a low balance requirement with a minimum monthly account balance as low as ₹10,000 only.
Kotak Mahindra Bank NRO Account
- Personalised investment advisory customised to risk return.
- Interest earned on deposits is fully repatriable up to one million USD per financial year for bona fide purposes.
- Earn interest at 3.5% on the daily closing balance of your savings account, paid quarterly.
- Access your bank account anytime, anywhere with the Rupay India Debit Card.
- Enjoy 24/7 access through phone banking and receive an At Par chequebook.
- Conveniently manage your account through Net Banking for various transactions.
- Home Banking Services are available in India.
- Jointly open the account with NRIs/PIOs and Resident Indians.
RBL Bank NRO Account
- INR denominated account.
- Interest income earned is subject to tax deducted at source.
- Account can be held jointly with an NRI.
- Limited Repatriability: Funds in the account can be repatriated up to USD 1 Million per financial year per customer upon submission of relevant documents.
State Bank of India NRO Account
- SMS Alerts.
- Multi-City chequebook (MCC).
- Domestic Debit Card.
- Internet banking.
- NRI Family Card.
- You can open this account either individually or jointly with other NRIs, PIOs, or OCIs.
- Accounts can be opened with resident Indians on a “former or survivor” basis.
- You can withdraw funds from this account to make local payments in Rupees.
- Interest income is subject to tax deduction at the source.
- Rupee loans available against NRO Deposits.
Yes Bank NRO Account
- Earn unlimited rewards that can be redeemed for shopping, e-vouchers, flights, hotels, and more with YES Rewardz.
- The NRO Savings account is denominated in Indian Rupees.
- Earn attractive rates of interest on your deposits for high returns.
- Funds are repatriable up to $1 Million.
- Interest earned is subject to taxes in India due to taxation rules.
- Enjoy access to over 1.5 million ATMs, offers, discounts, Lost Card liability protection, and more with the Domestic Debit Card.
- Nomination and overdraft facilities are available for your convenience.
To delve deeper into the taxation aspect of NRO accounts, we recommend reading our detailed guide on NRO Account Taxation.
Benefits of NRO Account Saving Banks
- You can place the income earned in India into this account.
- You have the option to deposit funds from your NRE account and also transfer funds directly from overseas into this account.
- You can save and invest your earnings from various Indian sources such as rent, pension, and interest.
- You are allowed to send back your Indian earnings, up to 1 million USD per financial year, to your home country.
- Grant authorization to a resident Indian family member for convenient access to funds by your family members in India.
- You can jointly open an NRO account with a resident Indian or even another NRI.
- Facilitate the transfer of funds from your existing NRE account.
- Please be aware that the interest you earn in this account is subject to TDS (Tax Deducted at Source).
If you’re considering investing in property in India, you might also want to explore NRI home loans. Check out our comprehensive guide on NRI Home Loans to learn more.
How Can NoBroker Help
Managing your finances as an NRI can be challenging. But It’s important to remember that managing your NRI finances and navigating regulations can be daunting, even more so when you are residing in a different corner of the world.
That’s where NoBroker comes in. With our expertise and commitment to simplifying financial solutions for NRIs, we’re your trusted partner on this journey. Don’t hesitate; Reach out to NoBroker’s NRI services and we’ll take care of all your financial needs.
Frequently Asked Questions
1. What is the best NRI account in India?
Answer: The best NRI account in India depends on your specific needs. There are two primary types: NRE and NRO accounts. NRE accounts are suitable for repatriable income, while NRO accounts are ideal for income generated in India.
2. Which bank offers the best NRE account in India?
Answer: Several banks offer NRE accounts in India. Popular options include HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.
3. How can I find the best bank for an NRI account in India?
Answer: To find the best bank for an NRI account, compare features, interest rates, and services offered by different banks. Consider factors such as online accessibility, remittance options, and customer support.
4. What are the current NRE savings account interest rates in India?
Answer: NRE account interest rates in India vary by bank and may change periodically. It’s advisable to check with your chosen bank for the most up-to-date rates.
5. How is interest calculated on an NRE account?
Answer: Interest on an NRE account is usually calculated on the daily closing balance and paid quarterly. Interest earned in this account is exempt from taxation in India.
6. Which bank is considered the best NRI bank in India?
Answer: The best bank for an NRI account depends on your specific requirements and preferences. Research various banks and their offerings to make an informed choice.
7. What are the benefits of an NRI account?
Answer: NRI account benefits include tax-free interest income, easy repatriation of funds, joint account options with resident Indians, and convenient online banking services.
8. Can you provide a list of the top 10 NRI banks in India?
Answer: The top 10 NRI banks in India may change over time, but some well-known options include HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, State Bank of India (SBI), and more.
9. What are the fixed deposit rates for NRIs in India?
Answer: Fixed deposit rates for NRIs in India vary depending on the bank, deposit term, and the amount invested. Rates can range from competitive to highly attractive, so it’s advisable to check with the specific bank for their latest rates.
10. Can I open an NRI account online?
Answer: Yes, many banks in India offer the option to open an NRI account online. This streamlined process allows NRIs to complete the account opening formalities from anywhere in the world.
