Q: What is the difference between NRE, NRO, and FCNR accounts?

NRE account: Foreign income, tax-free interest, full repatriation NRO account: Indian income, taxable interest, limited repatriation FCNR account: Foreign currency fixed deposit with no exchange risk

Question 1

Which NRI bank account should I open in India?

Accepted Answer

The right account depends on your income source, repatriation needs, and tax residency status.

NRE account: For foreign income; fully repatriable
NRO account: For income earned in India
FCNR account: For holding foreign income in foreign currency

Our NRI banking tool recommends the best option based on your profile.

Question 2

What is the difference between NRE, NRO, and FCNR accounts?

Accepted Answer

NRE account: Foreign income, tax-free interest, full repatriation
NRO account: Indian income, taxable interest, limited repatriation
FCNR account: Foreign currency fixed deposit with no exchange risk

Question 3

Can I hold both NRE and NRO accounts at the same time?

Accepted Answer

Yes, NRIs can legally hold both accounts to manage Indian and foreign income separately.

Question 4

Can NRIs open bank accounts in India from abroad?

Accepted Answer

Yes, most Indian banks allow online account opening using KYC documents such as passport, visa, and overseas address proof.

Question 5

Is interest earned on an NRO account taxable?

Accepted Answer

Yes, NRO interest is taxable in India at 30% plus surcharge and cess, and TDS is deducted by the bank.

Question 6

Which NRI bank account is best for tax savings?

Accepted Answer

NRE and FCNR accounts are generally preferred, as their interest is exempt from Indian income tax.

Question 7

Which NRI bank account allows full repatriation?

Accepted Answer

NRE and FCNR accounts allow 100% repatriation of both principal and interest.

Question 8

Can I transfer money from an NRO to an NRE account?

Accepted Answer

Yes, after paying applicable taxes. The transfer requires Form 15CA and Form 15CB.

Question 9

Which NRI bank account is best for long-term savings?

Accepted Answer

NRE fixed deposits and FCNR deposits are commonly recommended for long-term savings.

Question 10

Is this NRI bank account advisor tool free to use?

Accepted Answer

Yes. The NRI Bank Account Type Advisor Tool is completely free and designed to help NRIs make informed banking decisions.