Non Resident Indians (NRIs) need to maintain NRE and NRO depending on the necessity.
What is an NRE Account?
NRIs can open two types of accounts, one is the NRO account and the other is the NRE account. The NRO accounts is use to normally make paymets locally and funds can be remitted from India or abroad. NRIs who are travelling abroad can convert their normal domestic account to NRO account. NRE account is an account where there is no tax deducted whether it is a NRE savings account or a NRE fixed deposit account. In the case of NRO account there is a TDS that is deducted on interest income. Here there is no TDS applicable.
What to see when opening the best NRE account?
Look for a host of things. The first thing to look when opening the best NRE savings account is whether there is service in the country of your residence. Check the interest rates also, as these are important if you have large sums of money. We have highlighted a few of the best NRE Savings account. However, you should know that thees could chance over time, especially the interest and other facilities that these banks offer. In any case here they go.
There are a number of reasons to choose the NRE savings account from Yes Bank. The first and foremost is that it gives you as much as 6 per cent interest. The second is that the online ability to open the account is very easy. So, you gain on both fronts. It is one of the best NRE savings account to open.
The bank offers interest rate of 4 per cent per annum for an amount up to 10 lakhs. The interest rate is 6 per cent on remaining balance above 10 lakhs.
Kotak Mahindra Bank
Kotak Mahindra Bank offers its NRI customers 8.90% interest rate on NRE Fixed Deposits. To add to the good news, the interest amount earned on these fixed deposits is completely taxfree & fully repatriable. Interest rate on NRE savings account balance is 4 per cent.
ICICI Bank NRE Account
NRIs should maintain a monthly average balance of Rs 10,000 at account level or Rs 25,000 at Customer ID level. The bank offers a free mandate card & cheque book for your family in India, giving them anytime, anywhere access to your account.
SBI NRE Accounts
NRIs should minimum monthly balance of Rs 1000. Interest rate is 4% per annum and is calculated on a daily basis. SBI has its presence in many countries like US,UK,Canada,Middle East etc.
HDFC NRE Accounts
One can remit funds easily through Quickremit, IndiaLink, Telegraphic Transfers and Cheque and draft facility is for free for this account holders One can avail of free ATM Card for the mandate holder in India
CitiBank NRE Account
The bank has offshore branches in India ("Citibank India") which provides NRIs with access to products and services. Initial money to open the account is USD 5000 for USA & Canda (varies with other countries). The bank also provides free platinum debit card for its customers.
Axis Bank NRE Accounts
The minimum account balance requirement of Rs 5,000. Free iConnect account access through secure Internet banking facility from anywhere and anytime.
Advantages of NRE Accounts
The advantage of having NRE accounts is income earned as interest is exempted from tax. The funds are repatriable and can be sent to any country outside India.
The funds can be transferred from this account to an NRO account. However, it is advisable not to do so, given the fact that there is a TDS on interest rates on NRO acccounts.