NRE Vs NRO Accounts: Choosing The Right Savings Account For NRIs

NRIs need a specialized NRI bank account to bank in India and they have two choices – NRE and NRO Account.

Which one is better? Let’s decode.

NRO Account

A Non-Resident Ordinary Account is a rupee-denominated account which is meant for depositing income earned in India.

NRE Account

A Non-Resident External Account is also a rupee-denominated account meant for depositing foreign income in India. 

The interest income earned from an NRO account is taxable. However, the funds can be repatriated up to 1 million USD per financial year.

In NRE Accounts, the interest income is fully tax-exempt and the principal deposited and the income earned can be freely and fully repatriated.

Assess your needs and the tax aspect to choose the right account.

IDFC FIRST Bank offers both NRE and NRO bank accounts with attractive interest rates and a seamless banking experience. Choose your account.