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To boost investment in the home country, the Indian government has introduced great non-resident external account (NRE) options for non-resident Indians or NRIs. These are denominated in the Indian rupees (INR) and exist in the form of current, savings or recurring deposit accounts.
It is important to note here that these accounts can have deposits from earnings in a foreign country and not from earnings made here in India. On the other hand, withdrawals can be made in the currency of the other country.
Some of the biggest benefits of having these accounts are that funds can be transferred from one NRE account to another easily, the income from these is tax-free, and these can be operated jointly by two NRIs. Additionally, NRIs can make investments in India via these accounts.
Several options are now available and we have compiled some of the best bets that are out there.
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1
IndusInd Bank Savings Account
Interest Rates on Savings Account
Up to 6.75*% p.a
Fixed Deposit Interest Rates
7.99*% p.a (with sweep in/sweep out
Rewards
Discounts and Offers on top brands*
On IndusInd’s secure website
2
IDFC Saving Bank Account
Interest rates
Up to 7.25% p.a*
Features
Zero Charges on all Savings Account Services, IMPS, Debit Card, SMS Alerts & more
Benefits
Free and unlimited withdrawals
On IDFC’s secure website
3
Axis Bank Amaze Savings Account
Welcome Benefits
Enjoy rewards worth Rs. 11,000
Other Benefits
Zero-balance account, no domestic banking charges, Free debit card and chequebook, Get 3 months of Amazon Prime (INR 599) with your first online rewards card transaction within 30 days.
Fees
INR 200/month
On Axis Bank’s secure website
4
Yes Bank Savings Account
Interest rate:
Upto 6.25%
Balance required:
Zero
Special feature:
Earn up to 16000 Yes Bank Rewardz Points worth 4000 INR
On Yes Bank’s secure website
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Best NRE Accounts in India For NRIs
- Kotak Mahindra Bank
- ICICI Bank
- SBI Bank
- HDFC Bank
- Axis Bank
Best Bank For NRE Account
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Kotak Mahindra Bank
4.8
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Minimum Balance Requirement
INR 10,000
Savings account interest rates start from
3.50% per annum
Minimum Balance Requirement
INR 10,000
Savings account interest rates start from
3.50% per annum
Why We Picked It
Not only does Kotak Mahindra Bank’s NRE savings account have a low average monthly balance requirement of INR 10,000, but it also offers easy and economical remittances via Click2Remit, wire transfer and cheque. The bank also offers a preferential forex rate for transactions above $10,000. The customers also get a personalized and customized investment advisory.
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ICICI Bank
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Minimum Balance Requirement
INR 10,000
Savings account interest rates start from
3.50% for a year
Minimum Balance Requirement
INR 10,000
Savings account interest rates start from
3.50% for a year
Why We Picked It
ICICI Bank offers money transfers at competitive exchange rates and a free mandate card and cheque book for family members residing in India. The latter gives relatives access to the account anytime. It also offers a low average monthly balance requirement of INR 10,000. It also offers free ATM cards and cheque books to mandate holders. The bank also provides exclusive offers to its customers both in India and abroad.
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SBI Bank
4.7
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Minimum Balance Requirement
INR 50,000 (rural branches) to INR 1,00,000 (urban branches)
Savings account interest rates start from
2.70% for a year
Minimum Balance Requirement
INR 50,000 (rural branches) to INR 1,00,000 (urban branches)
Savings account interest rates start from
2.70% for a year
Why We Picked It
The SBI NRE savings account offers features such as SMS alerts, multi-city cheque book, international or domestic card, internet banking facilities and NRI Family Card. Additionally, the account can be withdrawn for making local payments in INR. Plus, INR loans can be taken against NRE deposits.
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HDFC Bank
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Minimum Balance Requirement
INR 5,000 (rural branches) to INR 10,000 (urban branches)
Savings account interest rates start from
3.00% for a year
Minimum Balance Requirement
INR 5,000 (rural branches) to INR 10,000 (urban branches)
Savings account interest rates start from
3.00% for a year
Why We Picked It
The HDFC Bank NRE Savings account comes with an international debit card that lets you withdraw cash and shop anywhere in the world. Additionally, an Indian resident can be appointed as the mandate holder of an NRE Savings Account.
The interest rates that the account offers are decent. Online transactions can be done 24×7 through HDFC NetBanking. You can also pay utility bills online.
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Axis Bank
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Minimum Balance Requirement
INR 10,000 to INR 20,000
Savings account interest rates start from
3.00% per annum
Minimum Balance Requirement
INR 10,000 to INR 20,000
Savings account interest rates start from
3.00% per annum
Why We Picked It
The account offers free internet and mobile banking, and free personal accident cover. The Prime Savings Account also offers a family banking feature and air accident cover of up to INR 1 cr. The Easy Savings Account has a minimum balance requirement of just INR 12,000 and offers free unlimited Axis Bank ATM transactions.
There are three other options available in the savings account category: the Mariner Account, the Priority Account and the Burgundy account. These offer features such as complimentary airport lounge access, and a dedicated relationship manager.
Comparison of Best NRE Savings Account in India
| Name | Company – Logo | Forbes Advisor Rating | Forbes Advisor Rating | Interest Rate for a year for Fixed Deposits below INR 2 cr | Net Banking | Learn More |
|---|---|---|---|---|---|---|
| Kotak Mahindra Bank |  | 4.8 |  | 7.10% | Yes | View More |
| ICICI Bank |  | 4.7 |  | 6.70% | Yes | View More |
| SBI Bank |  | 4.7 | | 6.80% | Yes | View More |
| HDFC Bank |  | 4.6 | | 6.60% | Yes | View More |
| Axis Bank |  | 4.6 | | 6.75% | Yes | View More |
What are NRE and NRO accounts for NRIs?
Both non-resident external (NRE) and non-resident ordinary (NRO) accounts are used by NRIs for making currency credits.
Based on the transactional requirements of an NRI or a person of Indian origin (PIO), one or both of these accounts will be needed to operate a savings account in India, as per RBI regulations.
What is the difference between NRE and NRO accounts?
NRE is a tax-exempt account opened in the name of an NRI to enable foreign currency deposits and easy repatriation. However, it’s important to note here that the NRE account allows for repatriation without limits and also allows for repatriation of principal. This account does not allow deposits in INR. Additionally, the account’s income earned on balance is tax-exempt.
An NRO account is an NRI bank account opened in India to manage the income earned here – pension, rent, dividend, interest etc. This account imposes limits on the repatriation of the principal amount. This account does not enjoy tax exemptions on income earned from the balance.
When it comes to joint accounts, an NRI can open one with another NRI or PIO. The account can be jointly operated with a relative in India who is a resident of the country, on a former or survivor basis. The NRO account, on the other hand, can be opened with an Indian resident on a former or survivor basis, and with another NRI or PIO.
Features of NRE Savings Account
One of the top features of an NRE account is that the principal, as well as the interest accrued on the balance, is repatriable without any limits imposed. Another benefit of using these accounts is that the income earned on the account balance is tax-exempt. However, it might be noteworthy here that for all one knows, you may be taxed in your country of residence. It depends on the prevailing tax regulation of that country.
You can open a joint NRE account with an NRI or a resident Indian relative on a former or survivor basis. Also, as mentioned above, this account is used for crediting funds from an overseas account. An international debit card for an NRE can be used to withdraw money anytime.
The account can also be linked to an investment or trading account to dive into Indian investment instruments.
Benefits of NRE Savings Account
Here is a summary of the benefits of an NRE savings account:
First and foremost, both principal and interest earned in this account are tax-exempt. Both are also easily repatriable without any limitations imposed. Besides, transferring funds from an NRE to an overseas account is free.
Additionally, the account can be used for personal as well as business-related activities in the country (India).
However, primarily these accounts are used for making direct investments in India.
Documents Required for NRE Account
Listing documents below that are usually required to open an NRE account.
- Photocopy of valid passport or PAN (permanent account number) card as ID proof
- Photocopy of work permit, visa or overseas resident card as proof of NRI status
- Address proof (local or overseas – whichever is chosen as the address for communication)
- Latest colored passport-sized photograph
- Initial payment cheque/draft from your account
These documents need to be attested by one of the following:
- Overseas branch bank official of an Indian Scheduled Commercial Bank
- Notary Public Abroad or Court Magistrate or Judge
- Indian Embassy or Consulate General in the country of residence of the applicant
Bottom Line
For an NRI looking to have a rewarding investment journey in India or to have a savings account in India, the option of opening an NRE account exists with a host of benefits. Not only do most banks give a decent interest rate on the savings account, but the interest accrued is tax-exempt. With more and more banks adopting the paradigm of customer first, the journey of opening an account with them is getting better and easier.
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