Here are the some types of nri account.
Non-Resident Indians (NRIs) can open specific types of bank accounts in India under the guidelines of the Foreign Exchange Management Act (FEMA). When selecting how much to save and invest as an NRI, you may encounter a lot of possibilities and have to select from a variety of products. When you are aware of types of NRI accounts, you will make an informed decision. There are several types, including NRE account, NRO savings account, and FCNR deposit account.
3 NRI Bank Account Types
By knowing this, you can make sure that your money is invested more wisely and yields higher returns. The following accounts help NRIs manage their earnings in India and abroad while ensuring smooth financial transactions.
Non-Resident External (NRE) Account
To deposit and manage income earned outside India. Funds can be freely repatriated abroad.
Maintained in Indian Rupees (INR) but funded in foreign currency.
Fully repatriable (principal + interest).
Tax-free interest earnings in India.
Available as Savings, Current, Recurring, or Fixed Deposit accounts.
Non-Resident Ordinary (NRO) Account
To manage income earned in India (rent, dividends, pension, etc.). Funds can be partially repatriated after paying applicable taxes.
Maintained in Indian Rupees (INR).
Interest is taxable in India.
Foreign Currency Non-Resident (FCNR) Account
To deposit foreign earnings in foreign currency without conversion losses.
Maintained in designated foreign currencies (USD, GBP, EUR, etc.).
Tax-free interest in India.
Fully repatriable.
I hope you found this helpful.
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Can NRI have savings account in India?
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NRIs cannot have a savings account in India. Many people continue depositing in their savings accounts even after becoming NRIs, which is actually ILLEGAL. There are different types of NRI bank accounts made available, and an NRI must only deposit or withdraw money from those accounts. A lot of banks provide NRI accounts, so let me share some of the most renowned banks here.
How many types of NRI account are there?There are three main types of NRI accounts that are made available to an NRI investor. Let me talk about them in detail here-
| Type of NRI account | Features |
Non-Resident Ordinary (NRO) Savings Account/ Fixed Deposit Account |
NRO accounts are mainly used to house funds from NRI’s income that he/she has earned from India or abroad |
Income from dividends, pensions, house rent or more can be sent to a foreign land through an NRO account |
|
Interest income earned on the amount available in the NRO account is liable for TDS |
|
You can have joint holders for this account- NRIs and Indians both are allowed |
|
Non-Resident External (NRE) Savings Account/ Fixed Deposit Account |
NRE accounts are used to save the income that you have earned abroad |
The interest income earned on the NRE amount is non-taxable |
|
You can have NRIs or resident of India as a joint holder |
|
Foreign Currency Non -Resident (FCNR) Fixed Deposit Account |
The principal amount and the interest in an FCNR accounts are fully transferable |
The interest income earned on the money in an FCNR is non-taxable in India |
|
FCNR accounts are to be opened and maintained in foreign currency. |
This chart should have already answered what type of bank account NRI can open in India.
Which NRI account is best?Some of the best banks where an NRI can open an account are-
HDFC
ICICI
Kotak Mahindra
Axis Bank
Bank of India and more
So these are the
types of NRI bank accounts and their features.
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Read More:Can I deposit money in NRE account from India ?
Difference between NRE and NRO account
How To Withdraw Money From NRE Account?
What Type of Bank Account NRI can Openn in India?
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2023-05-23T09:59:10+00:00 2023-05-23T11:16:28+00:00Comment
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