10 Best NRE Savings Accounts for NRIs 2022

Non-Residents Indians (NRIs) who are seeking to possess a saving account or a fixed deposit account in India can' open a usual account similar to the Indian residents. If you had already opened one when you were an Indian resident prior to shifting abroad, you will be required to move it into an NRO account.

Based on your requirements, you can opt for anyone between NRO and NRE savings account. It's considered illegal for an NRI to have a residential account and it could attract gigantic penalties. In this post, you will get to know about the top 10 NRE saving accounts for NRIs alongside the proper introduction to NRE savings account, its benefits and the difference between NRE and NRO accounts.

NRE account stands for Non-Resident External account. The saving account is an account which is maintained by a Non-Resident Indian, where payments are credited only from outside of India via drafts or RTGS. Although, withdrawals can be carried out outside of India or within India.

The difference between a general saving account and a Non-Resident External Account (NRE) is that the NRE saving account is held by a non-resident and the transactions are carried out from outside of India, while, a general saving account is managed by the resident of Indians.

A few years back, the monetary authority of India viz. Reserve Bank of India (RBI) had increased the rate of an interest cap on NRE FDs that were linked to the London Interbank Offer Rate (LIBOR). One of the significant benefits of NRE saving bank account is that the interest income is exempted from taxes when in the hands of the investors.

Following are advantages of NRE savings accounts that you can relish on availing of it:

Tax Benefits

Knowledge about taxation on Interest will help you pick the proper NRI Fixed Deposit. While the interest earned on your NRE saving account also the NRE Fixed Deposit is tax-free in India, You furthermore get an option of transferring your funds from the NRO account to NRE saving account after the payment of applicable taxes.

Repatriation Benefits

Another crucial benefit of NRE saving account is its repatriation benefits. NRE saving accounts enable seamless movement of funds as you can repatriate both, the principal and interest. Funds in NRE savings accounts are completely and freely repatriable.

Minimal Balance Requirement

You are not required to maintain a high balance in your NRE saving account. Several banks have dropped their minimum balance requirement substantially. Nowadays, most banks require just Rs. 10,000 as a minimum balance.

FCNR Deposit

Besides NRE saving accounts and fixed deposits, you furthermore get an option of booking Foreign Currency Deposits. So, in case you are willing to save lots of your earnings in Foreign Currency then you can book foreign currency non-resident (FCNR) deposit and earn interest in Foreign Currency. Interest earned on FCNR deposits also is tax-free in India.

Convenience benefits

Opening an NRI Account is easy, therefore, it comes with the benefit of convenience. Numerous banks allow you to open NRI accounts without visiting the branch in India. All you are required to do is duly fill-in a form online, get a printout, attach the self-attested copy of certain documents and send it via courier to the bank in India.

Below we have stated the top 10 NRE savings accounts for NRIs after carrying out a study across multiple aspects. Let’s take a look at them:

Kotak Mahindra Bank NRE Savings Account

The NRE savings accounts at Kotak Mahindra Bank earn 4% interest p.a. The bank offers 3 types of NRE savings accounts to the NRIs and the interest is payable to their account at different intervals (quarterly or half-yearly).

Interest rates on fixed deposits are as high as 7.30% p.a. One can use its net banking facility to pay credit card and utility bill payments.

NRE Rupee bank account 

• Average Quarterly Balance should be maintained at Rs. 10,000.
• Easy remittances to India by Cheque/Wire Transfer/Click2Remit.
• Preferential Forex rate for transactions made above $ 10,000.

NRE Platina Saving Account

• Preferential pricing on products and services.
• Global VISA Platinum open-end credit.
• Dedicated Relationship Manager across branches in India.

NRE Mariner Saving Account

• Home loan credit with a 50% discount on the processing fee.
• International debit card with up to 10 free non-Kotak Mahindra Bank ATM withdrawals.
• Zero opening fee for Online Investment Account.

Axis Bank NRE Savings Account

When talking about the top NRE saving account for NRI, Axis Bank stands out on the top. The bank is among the most significant private bank within the banking sector in India.

Axis Bank NRE saving account enables you to authorize a resident Indian to conduct banking transactions on the NRI's behalf, In their unavailability. The Axis Bank NRE savings account welcome kit comes with a cheque book and a Domestic-Titanium debit card.

The debit card fits the needs of non-residential Indian and its comes with certain terms and conditions. The bank additionally gives 2 lakhs of free accidental coverage on their debit card.

NRIs will have to maintain a monthly average balance of Rs. 10,000 at any Axis Bank branch across India. You can earn 4% p.a. as interest amount on your total balance if keeping Rs. 50 lakhs and above; 3.5% p.a. interest amount on a daily basis if keeping less than Rs. 50 lakhs.

The NRE savings account at Axis Bank can be accessed from anywhere by means of secure internet banking or the Axis Bank mobile application.

ICICI Bank NRE Savings Account

NRIs got to maintain a monthly average balance of Rs. 10,000 at an account level and Rs 25,000 at the Customer ID level. The bank offers a free mandate ATM card & cheque book for your family in India, giving them anytime, anywhere access to your account.

Also, the account is allowed to be opened with any convertible currency and banks convert the currency into rupee currency. However, it is to be taken into notice that the account remains maintained in the Indian rupee.

Interest is computed on a yearly basis and paid on a half-yearly basis in June and December. The one advantage is that ICICI Bank being a rather large bank also has branches in several countries of the centre East and the united states.

Interest rates at 4% p.a. for end-of-day balances adequate to or above Rs. 50 lakhs and 3.50% p.a. for end of day balances below Rs. 50 lakhs.

SBI NRE Savings Accounts

NRIs got to sustain an average balance of Rs. 1000 on monthly basis at a rural SBI branch while for metro and semi-urban this has to be of Rs. 3000 and Rs. 2000 respectively.

The rate of interest is 4% p.a. for the balance above Rs. 1 crore and is computed on daily basis. The account fetches a 3.5% rate of interest for a balance up to Rs. 1 crore. The State Bank of India has its presence in several countries including the USA, UK, Canada, and the Middle East.

The account can be opened either singly or jointly with other NRIs or residents on a former or survivor basis. Besides, one can open the account with zero balance. For branches with a personal banking facility, a deposit of Rs. 1 lakh for metro and Rs. 50,000 for semi-urban or rural areas has got to be maintained.

HDFC NRE Savings Account

One can remit funds easily by means of Quickremit, IndiaLink, Telegraphic Transfers, and Cheque and draft facility for free of charge. One can avail of a free ATM Card for the mandate holder in India.

With an interest of 4% on a balance of Rs. 50 lakhs and above, the account offers interest on a quarterly interval basis. Additionally, the interest computation is carried out on the daily balance available in the account.

CitiBank NRE Savings Account

Citibank has offshore branches across India that provides NRIs with access to products and services. Initial money to open the NRE savings account in Citibank is $ 5000 for the USA & Canada; besides, it differs as per the countries.

The bank also extends free platinum debit card to its customers. The interest of 3.5% is computed on a daily basis and credited on a half-yearly basis in March and September.

No tax incidence for interest income, although, in your country of residence the same can attract tax implications.

Standard Chartered NRE Savings Account

The SCB renders free access to funds in rupee currency and one can convert the same into respective foreign currency while their stay in the overseas at any time in accordance with their convenience.

It extends utmost flexibility to its NRE savings account users. Interest earned on the NRE bank account is completely repatriable and you'll be eligible for the tax exemption on the interest income.

The bank will render a global valid Visa platinum debit card for the users. Alongside, higher limits for ATM withdrawal and on purchases using the debit card.

Yes Bank NRE Savings Account

Yes Bank NRI savings account allows you to transfer your earnings to India in a practical way. With the Yes Bank NRE savings account, you can conveniently transfer your earnings to India.

The features and benefits of the Yes Bank NRE savings account are lucrative. Also, you can repatriate the funds held within the account alongside the interest earned at any time. Also, you're eligible for zero tax deduction on the interest amount.

The Yes Bank NRE savings account features a multitude of direct banking services available at your fingertips; you can keep full control of your hard-earned money. Yes Bank extends exclusive financial solutions that are supported with the advice of the experts, which, in turn, meets your banking and savings requirements.

Moreover, the bank provides a rate of interest of 6% on their NRE savings account in India. It gives free and low-cost money transfers by means of several online and offline channels.

Deutsche Bank Value Plus NRE Savings Account

Deutsche Bank Value Plus NRE savings account is also one of the popular and best NRE savings accounts. It comes with the following features and benefits:

• Quick bank account opening kit
• Complimentary International Gold open-end credit. Flexible cash withdrawal and point of sale (PoS) limits from Rs. 25,000 to Rs. 1.5 lakhs.
• Earn 0.5 express rewards for each Rs. 100 you spent.
• 2.5% petrol surcharge waiver at all the petrol pumps across the country up to Rs. 150/month.
• Free acceptance at ATMs with leading International banks by means of a Global ATM alliance network.
• Lost card insurance of up to Rs. 2.5 lakhs on your card for 30 days prior to informing and 7 days after reporting the loss to the Bank.
• NRE fixed deposits at 8.25% (5 years) and 8% (1 to 2 years) w.e.f. October 23, 2018.

Nevertheless, one got to either keep a Minimum Average Quarterly Balance of Rs. 1 lakh in the bank account or a minimum Assets Under Management of Rs. 1.5 lakhs.

Bank of Baroda NRE Savings Account

Bank of Baroda features a significant global presence with its branches in the Middle East, Africa, Australia, South Africa, Europe, and the Far East. Its NRE bank account comes with the following features and benefits:

• Free remittance facility in case the account is maintained at a branch in India.
• Demand draft, bankers cheque, cheque book facilities issued freed from charge.
• No charges for collection of a cheque drawn on self a/c / travel cheques/currency notes tendered while a personal visit.
• Free custodial services.
• Free Debit VISA enabled ATM card.
• Free 24*7 account access by means of internet banking.
• Preferential exchange rate for conversion and allotment of lockers.
• Interest of 4% p.a. on daily balances.

In order to choose the best NRE savings account, you got to search for a number of things. The primary thing to take into consideration when opening the best NRE saving account is whether or not you can avail of the service within the nation of your residence.

Secondly, check the interest rates too, as they play a significant role if you've got large sums of cash. Above we highlighted the 10 best NRE savings accounts. Although, you need to know that these could adapt over time, particularly the interest and other facilities that these banks extend.

Read More:- Top 6 Saving Plans Which Makes Your Life Easier in 2021