Moving to a different country for employment or higher studies is a thrilling experience. But before you embark on the new journey, one aspect that deserves your utmost attention is personal banking. As per Foreign Exchange Management Act (FEMA) rules, an NRI cannot maintain a resident Savings Account in India. Non-resident Indians (NRIs) and People of Indian Origin (PIOs) need to set up an NRE or NRO Savings Account as stipulated by the Reserve Bank of India (RBI).
Let’s take a look at the types of NRI bank accounts and their top benefits-
Types of NRI Accounts
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Non-Resident External (NRE) Savings Account
An NRE Account can be used by NRIs and PIOs to park their foreign earnings. It is a rupee-denominated account that accepts foreign currency deposits.
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Non-Resident Ordinary (NRO) Savings Account
NRIs and PIOs use an NRO Savings Account to deposit their income earned from India. For instance, income like dividends, rent, etc., earned in India can be deposited in the Rupee-denominated NRO Account.
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NRE and NRO Fixed Deposit (FD) Account
NRIs and PIOs can also open NRE or NRO Fixed Deposit Account in their preferred bank to generate higher returns on their foreign or Indian income. Depending on the bank you select, NRO FD can be booked for a tenure ranging from 7 days to 120 months, whereas NRE FD can be booked for tenure of 12 months 1 day & above
You can choose to open either a Non-Resident External Savings Account or a Non-Resident Ordinary Savings Account with us, depending on your banking needs.
Benefits of NRI Savings Accounts
Compared to savings instruments in foreign countries, the NRI Savings Account interest rates in India are generally higher. For instance, an AU NRI Account lets you earn an interest rate of up to 7% p.a* as well as receive Monthly Interest Payouts. You can transfer your foreign earnings or deposit your Indian earnings into NRE/NRO Savings or Fixed Deposit Account to generate higher returns.
An NRI Bank Account also gives you access to various investment products in India. For instance, you can open a Demat Account to invest in stocks or use the account to make Mutual Fund investments. You can also select a family member in India as a mandate holder who can use the account on your behalf.
One of the leading benefits of an NRI Savings Account is repatriation flexibility. The funds available in your NRE Savings Account can be transferred back to a foreign country without restrictions. However, there are annual repatriation limits for transfers from an NRO Account.
When you come to India for vacation, you can conveniently use your NRE or NRO Savings Accounts to manage your expenses. Even when you’re in a foreign country, you can use the online banking facility of your NRI Account to pay bills, insurance premiums, etc., in India.
With NRI Account types like NRE Savings and NRE FD, the interest income is tax-exempt in India. So, you receive the entire interest income with no deductions.
Open an NRI Account with AU Small Finance Bank
Even if you’ve already moved to a foreign country, you can still
open an NRI Account online in India. AU Small Finance Bank lets you open an
AU NRI Savings Account without the need to visit our branch. We also offer complimentary pick-up of your KYC documents abroad, for which you can simply email us at
[email protected].
Avail the best NRI Savings Account Interest Rates by opening an AU NRI Account with us. Earn higher interest on your Savings Account with Monthly Interest Payout. If you can want to apply for any other bank services or products, it is super simple to do so with the help of our
Video Banking facility. You can also use our AU 0101 App / NetBanking to enjoy 24*7 account accessibility & avail a range of products/services. Other facilities like Hospital cash and free tax advisory services in India also offer a rewarding banking experience.
*Terms and Conditions apply. Rates are subject to change at the sole discretion of AU Small Finance Bank. For more details,
click here.
