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Top Banks Offering NRO and NRE Accounts in India 2026
For any Non-Resident Indian (NRI) willing to invest in India, a savings account is a must, which cannot be the regular savings account offered to residents of India. Hence, to uplift the investment opportunity for NRIs, some of the top banks have come up with specialised deposit accounts especially for them, that is, NRO (Non-Resident Ordinary) account and NRE (Non-Resident External) account. NRO accounts allow NRIs to deposit their income earned in India from various sources like rent, dividends, etc. NRE accounts allow NRIs to deposit their foreign income in India.
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- Top 10 NRO and NRE Banks in India
Top 10 NRO Banks in India
The table below lists the top 10 Banks in India offering NRO accounts where an NRI can park their savings and receive decent returns:
| Bank Name | Minimum Balance | Minimum NRO Fixed Deposit rates for deposits equal to or less than ₹3 Cr |
| Axis Bank | ₹10,000 - ₹10 lakhs, varies based on the account type chosen | 3% |
| Bank of Baroda | ₹1,000 - ₹2.5 lakhs, varies based on the account type | 3.50% |
| DBS Bank | ₹25,000 - ₹5,00,000, varies based on the account type | 2.75% |
| HDFC Bank | ₹10,000 (Metro/Urban) ₹5,000 (Semi-Urban) |
2.75% |
| ICICI Bank | ₹15,000 | 2.75% |
| Kotak Mahindra Bank | ₹10,000 - ₹1 lakh, varies based on the account type | 2.75% |
| RBL Bank | ₹10,000 - ₹25,000, varies based on the account type | 3.50% |
| State Bank of India | ₹1,00,000 (Urban and Metro branches) ₹50,000 (Semi-urban and Rural branches) |
3.05% |
| Yes Bank | ₹10,000 | 3.25% |
| Canara Bank | ₹1 lakh | 3% |
Top 10 NRE Banks in India
Here are the top 10 banks in India offering NRE savings account:
| Bank | Minimum Balance Requirement | Minimum NRE FD Rates for deposits equal to or less than ₹3 Cr |
| Axis Bank | ₹10,000 - ₹10 lakhs, varies based on the account type chosen | 6.25% |
| Bank of Baroda | ₹1,000 - ₹2.5 lakhs, varies based on the account type | 6% |
| Bank of India | Varies based on branch location and account type | 6% |
| Canara Bank | No minimum balance - ₹1 lakh, varies based on the account type. | 5% |
| DBS Bank | ₹25,000 - ₹5,00,000, varies based on the account type. | 6.25% |
| HDFC Bank | ₹10,000 (Metro/Urban), ₹5,000 (Semi-Urban) | 2.75% |
| ICICI Bank | ₹15,000 | 2.75% |
| Kotak Mahindra Bank | ₹10,000 - ₹1 lakh, varies based on the account type | 2.75% |
| RBL Bank | ₹10,000 - ₹25,000, varies based on the account type | 3.50% |
| State Bank of India |
|
6% |
Difference Between NRO and NRE Accounts
The following table lists some important differences between NRO and NRE accounts:
| Factors | NRE Account | NRO Account |
| Full form | Non-Resident External Account | Non-Resident Ordinary Account |
| Currency | Indian Rupee (INR) | Indian Rupee (INR) |
| Primary purpose | Managing overseas earnings in India | Managing income earned in India |
| Interest taxation | Fully tax-exempt, subject to applicable conditions | Generally taxable in India |
| Repatriation | Principal and interest are freely repatriable | Principal is subject to applicable limits and conditions; interest is generally repatriable after applicable taxes |
| Exchange-rate risk | Exposed to INR exchange-rate fluctuations | Exposed to INR exchange-rate fluctuations upon repatriation |
| Source of funds | Foreign income/remittances | Income earned in India, such as rent, pension or dividends |
| Best suited for | NRIs who want invest overseas earnings in India | NRIs receiving income from sources in India |
Taxation of NRE and NRO Accounts
It is important to consider the tax treatment that NRE or NRO accounts receive before beginning your application for account opening.
- NRE Account: Interest earned on an NRE savings account is exempt from income tax in India under Section 10(4) of the Income Tax Act. Additionally, no TDS (Tax Deducted at Source) is applicable on NRE account interest.Â
- NRO Account: Interest earned on an NRO Account is fully taxable in India and TDS is also applicable, generally 30% plus applicable surcharge and cess.
- Relief under Double Tax Avoidance Agreement (DTAA): If your country of residence has a DTAA with India, you may be eligible for lower tax rates. Note that DTAA benefits are not applied automatically; you need to submit relevant paperwork to your bank.
How to Choose the Right NRI Account?
Here are some reasons one should take into consideration while choosing an NRI account in India:
Source of Income
It is important to know the source of income of the NRI before opting for either an NRE or NRO account. Non-Resident External (NRE) accounts allow NRIs to deposit their foreign income or earnings to India, whereas Non-Resident Ordinary (NRO) accounts allow NRIs to deposit their income earned in India from various sources like rent, dividends, etc.
Interest Rate
Banks may offer different interest rates for NRE and NRO Accounts. Before opening an NRI account, you should carefully select the Bank that suits your requirements the best.
Minimum Balance Requirement
Different banks have different minimum balance requirements if one opts for an NRE or NRO account. An NRI should go for a bank that matches their financial ability to maintain that minimum balance and not leave them overburdened.
FAQs
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Can an NRI open both NRE and NRO accounts in India?
Yes, an NRI can open and maintain an NRO as well as an NRE account for different requirements as long as they satisfy the NRI criteria under FEMA regulations. -
Are NRE accounts tax-free in India?
Yes, both interest and principal in an NRE account are completely tax-free in India. Additionally, NRE accounts do not have any repatriation restrictions. -
What types of income can be used to fund an NRO account?
An NRI can fund their NRO account with India-sourced incomes such as rental income, pensions, dividends, interest, business and professional earnings, and capital gains. -
What types of charges should I consider before opening an NRI account?
Before choosing which NRI account to open, NRIs should thoroughly consider the following charges:- Non-maintenance charges
- Debit card fees
- Remittance charges
- Foreign exchange/conversion charges
- NEFT/RTGS/IMPS charges
- ATM withdrawal charges
- Account closure charges
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^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).