Top 5 NRI Banks for NRE account in India for 2025

An NRI's (Non-Resident Indian) regular resident savings account becomes invalid when they obtain the NRI status. They are required to open an NRI bank account to manage their financial transactions within India, such as a Non-Resident External (NRE) account.

An NRE account is a bank account for NRIs that allows them to manage the income that is earned outside India. This account offers several benefits, including providing tax-free interest income in India and full repatriation of both principal and interest back to the resident country. It also allows you to manage and hold your foreign earnings in Indian Rupees. 

Given the benefits of an NRE account, finding the best NRE accounts in India from a huge number of banks can be a task. To make it easier, in this blog, we have compiled a list of the 5 best NRE accounts in India for NRIs. 

What is an NRE Account?

An NRE (Non-Resident External) account is a bank account for NRIs (Non-Resident Indians), PIOs (Persons of Indian Origin), and OCIs (Overseas Citizen of India) to manage their foreign income in India. It is a rupee-denominated account that an NRI can open to deposit their foreign currency earnings. 

One primary benefit of an NRE account is its high liquidity, which permits the full repatriation of funds to their country of residence. Here are some key features of an NRE account:

Features of an NRE Account

• NRE accounts can be opened jointly with another NRI or a resident Indian.
• This account protects NRIs from any fluctuations in foreign exchange rates as the account is maintained in Indian rupees. 
• NRIs can freely repatriate both the principal amount and the interest earned to the country of residence without facing any restrictions. 
• It eliminates the need for converting currency while sending money abroad, as it allows direct access to foreign currency. 
• Funds in an NRE account earn interest and can be accessed easily. Additionally, the interest earned or funds transferred from abroad are tax-exempt in India. 

What is the Difference Between an NRE, NRO, and FCNR (B) Accounts?

NRE (Non-Resident External), NRO (Non-Resident Ordinary), and FCNR (Foreign Currency Non-Resident) are various types of NRI accounts. The table below shows the difference between an NRE, an NRO, and an FCNR (B) account based on the account features:

**The term 'former' or 'survivor' basis refers to the condition where only one of the two joint account holders, that is, the former account holder, can mainly manage the account. Once the 'former' passes away, the 'Survivor' can manage the account. 

**A relative is defined under Section 2 (77) of the Companies Act, 2013. It includes their parents (including stepparents), son (including stepson), son's wife, daughter, her husband, siblings (including stepsiblings), and children. 

What are the Top Five NRE Bank Accounts in India? 

Here is a list of the top five NRE bank accounts in India and the key features offered by them for NRIs:

HSBC Bank NRE Account 

The HSBC Bank NRE account is one of the best NRE bank accounts for NRIs. It is known for its amazing features and benefits. Here are some of the key features and benefits:

• HSBC NRE account offers one of the highest interest rates in the market. 
• There are no tax implications on the interest gained on an NRE account in India.
• NRIs can easily repatriate funds into their HSBC NRE savings account from any overseas bank. 
• HSBC NRE account holders must have a Rs. 1,50,000 average quarterly balance (AQB). It can be in a combination of Savings Account/Current Account or Fixed Deposit Balance. 

Axis Bank NRE Account 

Axis Bank NRE account offers easy repatriation, tax-free interest, and global access for NRIs. Below are the key features and benefits of the Axis Bank NRE account:

• You can authorize a resident to manage the account on your behalf. 
• It is user-friendly and offers easy access to the internet and mobile banking. 
• The interest range in the Axis Bank NRE account ranges from 3.0% to 3.50% every year. 
• You need to maintain a monthly average balance of Rs. 10,000 to Rs. 12,000 (easy savings account) and Rs. 25,000 (prime savings account). 

HDFC NRE Account 

HDFC NRE account offers personalized services and higher withdrawal limits. It is preferred by NRIs because of the benefits and features mentioned below:

• HDFC NRE account interest rate ranges from 3% to 3.50%.
• You can earn a higher rate of interest on your NRE savings account.
• It provides an international debit card for easy cash withdrawal and shopping globally. 
• A minimum balance of Rs. 10,000 in Metro/Urban branches. Also, a balance of Rs. 5,000 in Semi-Urban/Rural branches must be maintained. 

ICICI NRE Account 

ICICI NRE bank account offers 24*7 digital banking options, global money transfers, and other benefits. It is one of the most chosen savings bank accounts by NRIs because of the following features and benefits:

• Funds can be repatriated fully, and the interest is tax-free in India. 
• The interest rate in the ICICI NRE account ranges from 3% for a balance under Rs. 50 lakh and 3.50% for more than Rs. 50 lakh respectively.
• You must maintain a monthly average balance of Rs. 25,000 and Rs. 10,000 at the account level and customer ID level, respectively. 

SBI NRE Account 

SBI NRE account has a wide branch network and provides several benefits and features, which are as follows:

• Offers internet banking and SMS alerts.
• The bank offers international as well as domestic debit cards. 
• State Bank of India NRE account offers an interest rate of 2.70% per annum. 
• A minimum balance of Rs. 1 lakh in Metro/Urban areas and Rs. 50,000 in Semi-Urban/Rural areas is required to be maintained. 

How to Choose the Right NRE Account?

When choosing an NRE account, you must consider the following factors to choose the best NRE account:

• Understanding the Terms and Conditions: The first thing you must consider before signing up for an NRE account is to read all the terms and conditions associated with the account. 
• Compare Interest Rates: Consider an NRE account with a competitive interest rate to maximize your returns. 
• Good Customer Service: Look for a bank that is known for its helpful and quick, and responsive customer support. 
• Digitalised Process: Ensure to check that the bank provides user-friendly access and mobile banking options to operate the account with utmost convenience. 
• Mandate Holder Option: Opt for a bank that permits appointing someone else on your behalf to manage the account when you are not in India. 
• Future Planning: You must consider your long-term financial goals in India, and select an NRE account that provides the flexibility that you might need in the future. 
• Transaction Habits: If you plan on withdrawing funds frequently or using online transactions, then opt for an account that has minimal fees, less maintenance, and lower transaction fees. 

What are the Documents Required to Open an NRE Account?

You need to gather and provide some documents to open an NRE account. These include:

• Passport
• Proof of NRI status
• PAN card or Form 60
• Proof of Indian Origin 
• Overseas Address Proof
• Passport-sized photographs

How to Open an NRE Account?

Follow the steps below to open an NRE account:

• Step 1: Select a Bank 

Research and choose a reputable bank that offers NRE accounts with competitive interest rates and amazing customer service. 

• Step 2: Apply Online or Visit the Branch

To start the account opening process, either visit the bank's branch or its online website. 

• Step 3: Complete the Application Form 

Fill out the NRE account opening form with accurate information, including personal and contact details. 

• Step 4: Submit the Required Documents 

As mentioned earlier, gather all the required documents and submit them along with the completed application form. 

• Step 5: Verification and Approval

The banks will verify your documents and perform a careful review of everything. After that, you will receive the NRE account details upon approval of your account. 

• Step 6: Transfer Funds 

The next step is to fund your account. So, transfer funds from your foreign account to your newly opened NRE account. 

• Step 7: Start Operating Your Account 

You can now access your NRE account through online banking. If not, you can visit the bank's branch for any other requirements. 

To Conclude 

Choosing the best NRE account in India can be a big game-changer for NRIs who wish to manage their funds from abroad. You can use an NRE account to deposit your foreign earnings. It is a rupee-denominated account, ideal for expenses and investments in India. An NRE account offers several benefits to an NRI, including tax-free interest income in India and the option to repatriate funds with no limits freely. 

Furthermore, if you wish to open, operate, and manage your NRE bank account with utmost convenience, connect with Savetaxs. We have ties with the top banks in India, ensuring that the processing of your application is done quickly. With a team of expert CAs carrying more than 30 years of experience, you can stay confident that there are no mistakes or rejections during the process. 

NRIs from around the world trust us for our exceptional services. So connect with us 24*7, as we are working around the clock across all time zones to provide you with comfort and peace of mind.