Savings account for Non-resident Indian (NRI)

Non-resident Indians are people of Indian birth who live outside India. There are two types of Saving accounts available for NRI. They are NRE and NRO account.

NRE Account

NRE Account allows the account holder to deposit funds from foreign earnings / transferred foreign earnings to India. The funds are converted to INR regardless of whichever currency they may be in. These fund and interest earned through this account are exempt from tax and account holders can repatriate the money anytime.

NRO Account

NRO Account facilitates an NRI to manage their income earned in India such as rent, pension, dividends, etc., while they are staying abroad. Account holders can also transfer foreign currency into an NRO account, which will be converted to Indian Rupee. However, NRO Account is not exempt from tax.


In case of savings account Interest earned up to ₹10,000 is tax-free under Section 80TTA this is applicable to all savings accounts across banks including Indian Post Office’s savings scheme. Interest earned on NRE account is completely exempted from Tax.

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A.Sulthan, Ph.D.,
Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"
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