Whoever said wishes don’t come true hasn’t explored our offers!
  • NRE Savings Account v/s NRO Savings Account

    Savings Account
    • Instant money transfer
    • 24x7 ATM withdrawals
    • Attractive rate of interest

    Managing one’s income is a crucial matter which must be dealt with utmost care and knowledge. However, when it comes to NRIs or Non-resident Indians, managing their income may be a little more complex. It often happens that an NRI may be earning income not only in the country they are residing but also in India in form of rent, pension, dividends, etc. Keeping them in mind, banks offer specialized deposit accounts which are NRE (Non-resident External) Accounts and NRO (Non-resident Ordinary) Accounts. Both these types of accounts are designed keeping the special financial needs of NRIs in mind and help them manage their income earned abroad as well as in India. There are several leading banks, public as well as private, like SBI, ICICI, HDFC, Kotak Mahindra, etc., which offer this facility of NRE and NRO Accounts.

    NRE Savings Account

    An NRE Savings Account opened in India will allow the account holder to safely and conveniently deposit funds that come from foreign earnings / transferred foreign earnings to India. All funds coming into an NRE Account, whichever currency they may be in, are converted into INR or Indian currency, hence allowing an NRI to maintain foreign currency earnings in Indian Rupees. The funds collected as well as the interest earned on NRE accounts is exempt from tax and account holders can repatriate the money any time.

    NRO Savings Account

    An NRO Savings Account opened in India serves the purpose of allowing NRIs to manage their income earned in India from sources like rent, pension, dividends, etc., while they are abroad. NRO account holders can also transfer foreign currency into an NRO account, which will be converted to Indian Rupees or INR. It is important to know that an NRO Account is not exempt from tax laws. Though it may only be opened by NRIs, an individual may also convert their existing resident savings account to an NRO account, when their residential status changes. So, a when I resident becomes an NRI, they have the option of converting their existing savings account held with a certain bank in India to an NRO account.

    Distinguishing Factors - NRE Savings Account & NRO Savings Accounts

    Both NRE and NRO Savings Accounts, though similar in many aspects, do have some major differences. In order to better understand the function and working of both these accounts, here is a low down about some major factors which distinguish an NRE Account from an NRO Account.

    Currency Option For Fund Deposit

    One of the major difference between an NRE and NRO Savings Account is the option each of them offer for deposit of funds. An NRE Savings Account will only allow you to deposit funds in a foreign currency while in an NRO Savings Account, you can also deposit funds in Indian Rupees.

    Purpose

    An NRE Savings Account basically serves the purpose of allowing you to transfer funds earned abroad to India and maintain them. An NRO Savings Account on the other hand serves the purpose of allowing you to accumulate and maintain the regular flow of income you may be earning in India by way of rent, dividends, pension, etc.

    Repatriation of Funds

    In simpler terms, repatriation means the inflow or outflow of currency to a foreign country. In this regard, NRE and NRO Savings account differ to some extent. One can conveniently repatriate funds, including the interest earned, from an NRE Savings Account. However, the RBI has imposed certain restrictions regarding repatriation from NRO Accounts. NRO Savings Account holders may only be allowed to remit up to USD 1 million during one financial year i.e. April to March.

    Interest Rates

    It is likely that interest rates offered on NRE and NRO Accounts may differ with different banks offering that facility. However, currently, most banks are offering rather similar rates of interest on both these accounts.

    Tax Imposition

    One of the major differences between NRE and NRO Savings Accounts could be the taxation laws which are applicable on each. NRE accounts are exempted from tax. Not only is the income but also the interest earned on these accounts is tax exempted. Hence, taxes like income tax, wealth tax, gift tax, etc., are not applicable in India.

    However, following the Indian Income Tax Laws, NRO Accounts are not exempt from tax. Taxes like income tax, wealth tax, gift tax, etc., are applicable to NRO Accounts. Also, interest earned on an NRO Account is taxable as well. NRO Account holders, do, however, have the reduced tax benefit which they may avail under the Double Taxation Avoidance Agreement (DTAA).

    Account Holding

    An NRE Joint Account or an NRO Joint can be opened by two NRIs. However, an NRE Joint Account cannot be opened by an NRI along with a resident Indian. This is only allowed in the case of a joint NRO Account.

    Exchange Rate Fluctuation

    Exchange rates can result in considerable loss of currency. Keeping that in mind, NRE accounts are open to two kinds of loss due to exchange rates which are, daily fluctuations in the value of the rupee or INR, as well as conversion loss. However, NRO Accounts are safe from both these exchange rate fluctuations. 

    Fund Transfer

    When opening an account, one of the primary concerns one may have are regarding transfer of funds, may it be to a family, friend or for any work related purpose. As an NRE Account holder, you can transfer money not only to another NRO account but to n NRO account as well. However, as an NRO account holder, you may only transfer money to another NRO account. You cannot transfer money to an NRE account from an NRO account.

    Deposit / Withdrawal of Funds

    Deposit or withdrawal of funds is also one of the more important factors differentiating an NRE Account from an NRO Account. Funds originating from a foreign country (foreign currency) can be deposited in both NRE and NRO accounts. However, funds originating in India i.e. in Indian Rupees or INR can be deposited only in NRO Accounts and not an NRE Account. Withdrawals, however, can only be made in Indian Rupees or INR from both NRE and NRO Accounts.

    Choosing the right account which best addresses one’s financial needs can make a world of a difference. Keeping in mind the differences which define an NRE Account from an NRO account, it would help if you can evaluate your requirements before choosing between any of these two accounts. However, since both these accounts have been designed after giving due consideration of an NRIs financial needs, they will undoubtedly offer a convenient and secure solution to help manage funds from across the globe.

    Other Useful Reads :
    Savings Account
    Net Banking
    Mobile Banking
    Savings Account By Top Banks
    Savings Account By Banks

    Savings Account Reviews

  • Page 1 of 33 1 2 3 4 5
    • Bank Bazaar Debit Card
      "NICE BANK & NICE PERFORMANCE"
      INDUSIND BANK LTD
      0.5 4.5/5 "Excellent!"
      Bankbazaar is a very good site for banking guidance you can get to know your credit score at once and also know the best options suited for your requirement, these people also calls you and assist in the best way. I really felt it is helpful and will refer the site for our future needs.
      Was this review helpful? 2
      , jodhpur
      Reviewed on Jul 08, 2018
    • Bank Bazaar Debit Card
      "good service"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Good website bank bazaar and very easly to apply any account and in any branch now apply for all customers And The website gives great service, and is easy to comprehend with! It is very easy to open an account and compare many banks at the same time! Wonderful experience for me, and I recommend this to everyone. Must use this, for easy account opening guys
      Was this review helpful? 2
      , mumbai
      Reviewed on Jul 04, 2018
    • Bank Bazaar Debit Card
      "Very Good"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is a very good site for banking guidance you can get to know your credit score at once and also know the best options suited for your requirement, these people also calls you and assist in the best way. I really felt it is helpful and will refer the site for future needs.
      Was this review helpful? 3
      , new delhi
      Reviewed on Jul 04, 2018
    • Bank Bazaar Debit Card
      "Account opening"
      YES BANK
      0.5 4.5/5 "Excellent!"
      Its an amazing website so far with easy documentation, lets wait for the next step. i have applied for zero balance saving account, so far not much document required, and customer service is excellent and they provide a quick responsive its great.
      Was this review helpful? 3
      , guwahati
      Reviewed on Jul 03, 2018
    • Bank Bazaar Debit Card
      "I like bank bazar it is very good for car and insurance"
      YES BANK
      0.5 5.0/5 "Blown Away!"
      Excellent service Bank bazaar is very good for all customers for car,bike ,home loan. Bank bazaar is very use ful awesome platform to open savings account it will make dreams come true it will with me 24/7 it is very simple and easy to use i m so happy with the paperless transactions. I got a very good knowledge about the portal and it is good in many ways.
      Was this review helpful? 3
      , patna
      Reviewed on Jun 27, 2018
    • Bank Bazaar Debit Card
      "Excellent "
      YES BANK
      0.5 5.0/5 "Blown Away!"
      Excellent service Bank bazaar is very good for all customers for car,bike ,home loan. Bank bazaar is very use ful awesome platform to open savings account it will make dreams come true it will with me 24/7 it is very simple and easy to use i m so happily with the paperless transactions. I got a very good knowledge about the portal and it is good in many ways.
      Was this review helpful? 2
      , chennai
      Reviewed on Jun 26, 2018
    • Bank Bazaar Debit Card
      "VERY GOOD "
      INDUSIND BANK LTD
      0.5 4.5/5 "Excellent!"
      The website gives great service, and is easy to comprehend with! It is very easy to open an account and compare many banks at the same time! Wonderful experience for me, and I recommend this to everyone. Must use this, for easy account opening guys Bankbazaar is a very good site for banking guidance you can get to know your credit score at once and also know the best options suited for your requirement, these people also calls you and assist in the best way. I really felt it is helpful and will refer the site for future needs.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jun 26, 2018
    • Bank Bazaar Debit Card
      "Gold's Gym"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Good website bank bazaar and very easly to apply any account and in any branch now apply for all customers And The website gives great service, and is easy to comprehend with! It is very easy to open an account and compare many banks at the same time! Wonderful experience for me, and I recommend this to everyone. Must use this, for easy account opening guys
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jun 26, 2018
    • Bank Bazaar Debit Card
      "good service"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is a very good site for banking guidance you can get to know your credit score at once and also know the best options suited for your requirement, these people also calls you and assist in the best way. I really felt it is helpful and will refer the site for future needs.
      Was this review helpful? 2
      , mumbai
      Reviewed on Jun 26, 2018
    • Bank Bazaar Debit Card
      "GOOOD"
      INDUSIND BANK LTD
      0.5 4.5/5 "Excellent!"
      The website gives great service, and is easy to comprehend with! It is very easy to open an account and compare many banks at the same time! Wonderful experience for me, and I recommend this to everyone. Must use this, for easy account opening guys
      Was this review helpful? 2
      , chennai
      Reviewed on Jun 24, 2018
    • Bank Bazaar Debit Card
      "good"
      YES BANK
      0.5 4.5/5 "Excellent!"
      Excellent service Bank bazaar is very good for all customers for car,bike ,home loan. Bank bazaar is very use ful awesome platform to open savings account it will make dreams come true it will with me 24/7 it is very simple and easy to use i m so happy with the paperless transactions. I got a very good knowledge about the portal and it is good in many ways.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jun 23, 2018
    • Bank Bazaar Debit Card
      "good service"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is a very good site for banking guidance you can get to know your credit score at once and also know the best options suited for your requirement, these people also calls you and assist in the best way. I really felt it is helpful and will refer the site for future needs.
      Was this review helpful? 1
      , chennai
      Reviewed on Jun 21, 2018
    • Bank Bazaar Debit Card
      "the best banking side in the best service "
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is a very good site for banking guidance you can get to know your credit score at once and also know the best options suited for your requirement, these people also calls you and assist in the best way. I really felt it is helpful and will refer the site for future needs.
      Was this review helpful? 2
      , pune
      Reviewed on Jun 21, 2018
    • Bank Bazaar Debit Card
      "Madhu"
      YES BANK
      0.5 4.5/5 "Excellent!"
      This is very useful for all, also it is very easy to get details of all the people, also detailed given by the banks and the customers,and all over the customers,in our through india,this is more useful for the employees like all type of employees and many more,etc,.
      Was this review helpful? 1
      , tirupati
      Reviewed on Jun 18, 2018
    • Bank Bazaar Debit Card
      "Excellent service"
      YES BANK
      0.5 5.0/5 "Blown Away!"
      Excellent service Bank bazaar is very good for all customers for car,bike ,home loan. Bank bazaar is very use ful awesome platform to open savings account it will make dreams come true it will with me 24/7 it is very simple and easy to use i m so happily with the paperless transactions. I got a very good knowledge about the portal and it is good in many ways.
      Was this review helpful? 1
      , bhubaneshwar
      Reviewed on Jun 18, 2018
    • Bank Bazaar Debit Card
      "Great service"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      The website gives great service, and is easy to comprehend with! It is very easy to open an account and compare many banks at the same time! Wonderful experience for me, and I recommend this to everyone. Must use this, for easy account opening guys
      Was this review helpful? 1
      , mohali
      Reviewed on Jun 16, 2018
    • Bank Bazaar Debit Card
      "About the steps creating an account , It's too easy, u can "
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      It was awesome I am created my account is just a minute It's getting better and the money transfer is also very easy All can create this account And only a adhar number is required If you don't have pan card don't bother about it It's not necessary.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jun 15, 2018
    • Bank Bazaar Debit Card
      "The best banking site for your banking guidance"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Bankbazaar is a very good site for banking guidance you can get to know your credit score at once and also know the best options suited for your requirement, these people also calls you and assist in the best way. I really felt it is helpful and will refer the site for future needs.
      Was this review helpful? 1
      , kolkata
      Reviewed on Jun 14, 2018
    • Bank Bazaar Debit Card
      "Smart opening"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      Fantastic to be a part of your family...I am too much humble to get a chance open a free account, I need it urgently and I can opt an account no of my choice,,,superb,,,no paperwork, no long Q,simply the best way to opening an saving account,,,,,,,
      Was this review helpful? 2
      , kolkata
      Reviewed on Jun 08, 2018
    • Bank Bazaar Debit Card
      "ITS TOO AWSME EVERYTHING GETS SO EASY NO NEED TO SEARCH MORE"
      INDUSIND BANK LTD
      0.5 5.0/5 "Blown Away!"
      good Bank bazaar is doing very great job . we really need this type of technology in our country and they are contributing through their beautiful idea and working on that too with a clear and genuine way. Sometimes people just think of bring change but some are actually working on it without giving hassle to any of their customers.
      Was this review helpful? 3
      , mumbai
      Reviewed on Jun 06, 2018
    Common Loader Icon
    Page 1 of 33 1 2 3 4 5
    Loading your search...
    Close

    Compare Multiple Savings Accounts. Apply Online and Get e-Approved instantly

  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.