What is NRE Savings Account?
An NRE (Non-Resident External) Savings Account is a bank account designed for Non-Resident Indians (NRIs) to manage their income earned abroad in Indian currency. It facilitates easy money transfers to India while providing tax benefits on interest income.
Key Features of the NRE Savings Account:
Following are some of the key features of NRE Savings Account for NRIs in India:
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Currency and Repatriation:
Holds foreign income in Indian Rupees and offers full repatriation of both principal and interest.
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Tax-Free Interest:
Interest earned is exempt from Indian income tax.
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Exchange Rate Benefits:
Beneficial exchange rates when converting foreign income to INR.
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Attractive Interest Rates:
Competitive rates, generally between 3.5% to 7.5% p.a., depending on the bank.
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Convenience:
Supports online banking, international debit cards, and easy access to funds.
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Joint Account Option:
NRIs can open joint accounts with other NRIs or Indian citizens.
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Convenient Online Banking:
Most banks offer easy online access for managing accounts and transactions.
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Loan Availability:
NRE account holders can obtain loans against their deposits.
10 Best NRE Savings Account for NRIs in 2025
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Details of Top 10 NRE Account Saving Banks in India
Some of the important details and key features related to some of the top NRE savings bank accounts for Non-Resident Indians in 2025 are as follows:
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State Bank of India (SBI)
The SBI NRE Savings Account is designed for Non-Resident Indians (NRIs) to securely manage income earned abroad, offering tax-free interest and easy repatriation. It provides convenient access to funds with attractive features for global banking.
Key Features of SBI Bank NRE Savings Account:
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Tax-Free Interest: Interest earned is exempt from Indian income tax, maximizing returns.
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Full Repatriability: Both principal and interest can be freely repatriated to your country.
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Multichannel Access: Manage accounts seamlessly via mobile, online banking, and SBI branches.
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High-Interest Rate: Competitive interest rates on deposits, compounded quarterly.
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Joint Accounts Allowed: Can be opened jointly with another NRI or Resident Indian relative.
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Punjab National Bank (PNB)
Punjab National Bank’s (PNB) NRE Savings Account offers NRIs a secure way to manage foreign earnings in India, fully repatriable and tax-exempt.
Key Features of PNB NRE Savings Account:
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Currency Conversion: Funds are held in INR, with foreign currency remittances converted at current exchange rates.
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Full Repatriability: Both principal and interest can be freely transferred abroad.
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Tax Benefits: Interest earned is exempt from Indian income tax.
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Joint Account Option: Available for NRIs or with a resident relative.
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Digital Banking Access: Manage funds online via PNB’s banking portal and app.
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HDFC Bank
HDFC Bank’s NRE Savings Account is designed for NRIs to deposit foreign earnings in rupees, offering tax-free interest, repatriable funds, and easy access from abroad. It enables efficient fund transfers, investments, and withdrawals in India.
Key Features of HDFC Bank NRE Savings Account:
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Tax-Free Earnings: Interest is exempt from Indian income tax, enhancing savings.
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Easy Transfers: Seamless fund transfers to and from India via NetBanking.
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International Debit Card: Access cash and shop globally with a dedicated card.
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Investment Opportunities: Link to Demat accounts for stocks or mutual fund investments.
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Mandate Option: Assign a resident to operate the account for local access.
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ICICI Bank
The ICICI Bank NRE Savings Account is designed to help Non-Resident Indians (NRIs) manage their overseas earnings in India with ease and tax benefits.
Key Features of ICICI Bank NRE Savings Account:
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Tax-Free Interest: Earn tax-free interest on your deposits in India, exempt from Indian income tax.
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Easy Repatriation: Freely repatriate both the principal and interest to your foreign accounts.
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Joint Account Option: Open with another NRI or a resident relative under specific conditions.
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Deposit Flexibility: Accepts foreign currency deposits, which are converted to Indian Rupees.
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Wide Investment Scope: Funds can be used for investing in Indian assets like mutual funds and real estate.
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Axis Bank
The Axis Bank NRE Savings Account offers seamless banking for NRIs, allowing them to save in Indian Rupees with attractive features tailored for international financial needs.
Key Features of Axis Bank NRE Savings Account:
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Tax-Free Interest: Earn tax-free interest on your NRE savings, fully repatriable to your resident country.
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Global Debit Card Access: Use the international debit card worldwide for ease of access and payments.
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Flexible Fund Transfers: Enjoy quick, hassle-free fund transfers to India through services like Axis Remit.
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Loyalty Rewards: Earn eDGE Loyalty Rewards on transactions, redeemable for exclusive offers.
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24/7 Support: Access customer service, SMS alerts, and account management through mobile banking from anywhere.
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YES Bank
YES Bank’s NRE Savings Account offers seamless banking for NRIs, providing easy fund transfers, tax-free interest, and access to a wide network. It’s tailored to help NRIs manage their finances in India effectively.
Key Features of YES Bank NRE Savings Account:
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Tax-Free Interest: Interest earned is exempt from Indian income tax.
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Flexible Fund Transfers: Enjoy smooth inward and outward remittances.
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Easy Access: Accessible through online and mobile banking, globally.
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Global Debit Card: Offers international debit card usage.
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High Interest Rates: Competitive rates to maximize savings potential.
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Bank of Baroda
The Bank of Baroda NRE Savings Account allows NRIs to deposit foreign income in Indian currency, earning competitive interest rates with tax-free returns. It also facilitates smooth repatriation and access to banking services worldwide.
Key Features of Bank of Baroda NRE Savings Account:
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Free Repatriation: Both principal and interest can be freely repatriated without restrictions.
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Tax-Free Interest: Interest earned is exempt from Indian taxes.
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Accessible Globally: Offers internet and mobile banking for 24/7 access.
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Low Minimum Balance: Minimal monthly balance requirements based on the account location.
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Debit Card & Cheque Facilities: Free debit card and cheque book for easy transactions.
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Union Bank of India
The Union Bank of India NRE Savings Account is designed for NRIs to easily manage and repatriate foreign earnings in Indian Rupees, providing tax benefits and easy fund transfers globally.
Key Features of Union Bank NRE Savings Account:
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Full Repatriability: Both principal and interest are fully repatriable without restrictions.
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Tax Exemptions: Interest earned is free from Indian income tax.
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Global Access: International debit card with a daily withdrawal limit up to ₹1 lakh and a POS limit of ₹3 lakh.
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Joint Account Option: Can be jointly held with another NRI or a resident relative on a “former or survivor” basis.
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Free Transactions: Unlimited NEFT, RTGS, and IMPS transactions are allowed within India.
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HSBC Bank
The HSBC Bank NRE Savings Account offers Non-Resident Indians (NRIs) a convenient way to manage their income earned abroad in a tax-efficient manner. This account provides a safe and flexible banking solution with competitive interest rates and easy access to funds.
Key Features of HSBC Bank NRE Savings Account:
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Tax Exemptions: Interest earned is tax-free in India, offering significant savings for NRIs.
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Multi-Currency Facility: Allows transactions in multiple currencies, facilitating global banking needs.
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Online Banking: 24/7 access to account management and fund transfers through a secure online portal.
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Free International Fund Transfers: Enjoy free inward remittances and easy money transfers globally.
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Dedicated Relationship Manager: Personalized support to assist with banking needs and inquiries.
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IDFC First Bank
IDFC First Bank NRE Savings Account is designed for Non-Resident Indians. This account offers attractive features and convenient banking solutions for managing funds in India while ensuring easy repatriation.
Key Features of IDFC Bank NRE Savings Account:
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Attractive Interest Rates: Enjoy competitive interest rates on your savings, helping your funds grow effectively.
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No Account Maintenance Charges: Experience zero maintenance fees, making banking cost-effective.
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Instant Fund Transfers: Utilize seamless fund transfer options, including NEFT, RTGS, and IMPS for hassle-free transactions.
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Online Banking Services: Access comprehensive online banking features, including account statements and transaction management, 24/7.
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ATM Access Worldwide: Benefit from global ATM access for easy withdrawals, ensuring financial flexibility wherever you are.
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Overview of an NRI Account
All NRIs, in order to make any kind of investment in India, have to have an NRI account. An NRI Account allows Non-Resident Indians (NRIs) to manage income earned in India and abroad. There exist mainly three types of NRI accounts, they are NRE, NRO, and FCNR:
The Three Main Types of NRI Accounts Explained:
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NRE (Non-Resident External) Account:
Purpose:
Key Features:
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Full Repatriation:
The funds in an NRE account, including the interest earned, can be freely transferred back to your foreign bank account. This makes it very attractive for those who might need to move their money back out of India.
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Tax Benefits:
Interest earned on NRE deposits is exempt from income tax in India. This is a significant advantage for NRIs.
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Currency Conversion:
When you deposit foreign currency, it's converted to Indian Rupees at the prevailing exchange rate.
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Example:
If you're an NRI working in the USA and want to send your US dollar salary to India, you would deposit it into your NRE account.
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NRO (Non-Resident Ordinary) Account:
Purpose:
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Used to manage income that you earn within India.
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This could include rental income from property, dividends from Indian investments, pensions, or any other income generated in India.
Key Features:
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Partial Repatriation:
While you can transfer funds from an
NRO account back to your foreign account, there are limitations and restrictions on the amount you can repatriate per financial year.
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Taxable Income:
Interest earned on NRO deposits is taxable in India according to the applicable tax slabs.
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Joint Accounts:
NRO accounts can be held jointly with resident Indians, which is useful for managing shared property or other assets.
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Example:
If you own a house in India and receive rent, that rent would be deposited into your NRO account.
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FCNR (Foreign Currency Non-Resident) Account:
Purpose:
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Allows NRIs to deposit their foreign currency directly, without converting it to Indian Rupees.
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This is to protect from the fluctuations of the exchange rates.
Key Features:
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Foreign Currency Deposits:
Deposits are made in major foreign currencies like USD, GBP, EUR, etc.
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Exchange Rate Risk Protection:
By maintaining the deposit in the original foreign currency, you avoid the risk of losing money due to unfavorable exchange rate movements.
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Repatriation:
The principal and interest can be repatriated in the same foreign currency.
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Example:
If you have a large sum of US dollars and anticipate a potential decline in the Indian Rupee's value, you might deposit those dollars into an FCNR account.
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Term deposits:
FCNR accounts are usually term deposits, meaning that the funds are held for a fixed period.
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Difference Between NRE vs NRO vs FCNR Account
Below is the table showing the difference between NRE vs. NRO vs FCNR Accounts:
| Feature |
NRE (Non-Resident External) |
NRO (Non-Resident Ordinary) |
FCNR (Foreign Currency Non-Resident) |
Purpose
|
To hold foreign earnings in Indian Rupees. |
To manage income earned in India. |
To hold foreign currency deposits. |
Currency
|
Maintained in Indian Rupees. |
Maintained in Indian Rupees. |
Maintained in designated foreign currencies. |
Deposit Currency
|
Foreign currency. |
Indian and foreign currency. |
Designated foreign currencies. |
Taxation
|
Interest earned is tax-free in India. |
Interest earned is taxable in India. |
Interest earned is tax-free in India. |
Repatriation
|
Fully and freely repatriable. |
Partially repatriable (with limits). |
Fully and freely repatriable. |
Income Source
|
Foreign income. |
Indian income. |
Foreign currency deposits. |
Exchange Rate Risk
|
Subject to exchange rate risk (upon conversion). |
Generally not applicable (for INR transactions). |
Protected from exchange rate risk. |
Account Type
|
Savings or term deposit |
Savings or term deposit |
Term deposit. |
Joint Account
|
Primarily with other NRIs. Can have resident indian as a joint account holder only in former or survivor mode. |
Can be held jointly with other NRIs or resident Indians. |
Primarily with other NRIs. Can have resident indian as a joint account holder only in former or survivor mode. |
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