NRE vs. NRO vs. FCNR Deposits for NRIs

Comparing NRI Fixed Deposits

NRE vs. NRO vs. FCNR Fixed Deposit Accounts for NRIs Compared

Foreign Currency
Non-Resident Deposit (FCNR)

Non-Resident
External Account (NRE)

Non-Resident
Ordinary Account (NRO)

Currencies Available

You can choose from 5 currencies:

US Dollar
British Pound
Euro
Singapore Dollar
Australian Dollar

NRE Deposits are in Indian Rupees only
If you remit funds in Foreign Currency, these funds are converted on Indian Rupees at the prevailing exchange rate as on the date of the transfer prior to deposit booking.

NRO Deposits are in Indian Rupees only
If you remit funds in Foreign Currency, these funds are converted on Indian Rupees at the prevailing exchange rate as on the date of the transfer prior to deposit booking.

Minimum Deposit

USD 1,000 or equivalent

INR 10,000

Tenure of Deposit

Tenures available range from 1 year to 5 years

Tenures available range from 1 year to 10 years

Tenures available range from 7 days to 10 years

Interest Rates

Click here for interest rates

Interest Computation

Interest is computed using a fixed rate

Interest is computed using a fixed rate. You can choose between Simple or Compound Interest. For simple interest FD, you can get monthly or quarterly payout

Interest is computed using a fixed rate. You can choose between Simple or Compound Interest. For simple interest FD, you can get monthly or quarterly payout

Interest Payment

The interest on FCNR deposits is compounded at intervals of 180 days each and thereafter for the remaining actual number of days
The principal is increased to include the interest earned during the previous 180 days

Interest is accrued monthly
In case of Compound Interest, interest is compounded every 90 days and paid on maturity
In case of Simple Interest, interest is paid quarterly or monthly (monthly interest payment is with a discount)

Interest is accrued monthly.
For deposits greater than six months tenure both compound & simple interest is available
In case of Compound Interest, interest is compounded every 90 days and paid on maturity
In case of Simple Interest, interest is paid quarterly or monthly (monthly interest payment is with a discount)

Deposit Renewal

Deposit is automatically renewed for same tenure as original deposit at interest rate applicable as on date of renewal.If you wish to change renewal instructions, please provide instructions to the bank.

Tax on Interest

The interest earned on this account is exempt from tax in India. However, the interest earned may be subject to tax in your country of residence

The interest earned on this account is exempt from tax in India. However, the interest earned may be subject to tax in your country of residence

The interest earned on this account is subject to TDS at the rate of 30% + Surchage and cess when the interest accrues on your deposit
In addition to the interest taxed in India, the interest earned may also be subject to tax in your country of residence

Joint Account Holder

You can add Non-Resident Indians /PIOs / OCIs as Joint Account Holders. Resident Indian close relatives may be added a second holder in the account on “Former or Survivor” basis .This would allow the second holder access to account only post the demise of the NRI first holder

Funding the Account

The account can be funded through:

Foreign Currency Remittances from overseas
Funds from any other FCNR or NRE Account in any bank in India

The account can be funded through:

Foreign Currency Remittances from overseas
Funds from any other FCNR or NRE Account in any bank in India

The account can be funded through:

Any legitimate income from India
Funds from any other NRO or NRE account in any bank in India
Foreign currency remittances from overseas

Repatriation

Money from FCNR deposits is freely repatriable i.e. both the Principal amount and interest earned are freely and completely transferable.
we only require written instructions with the wire details for executing this Repatriation.

Money from NRE deposits is freely repatriable i.e. both the Principal amount and interest earned are freely and completely transferable.
we only require written instructions with the wire details for executing this Repatriation.

Funds from the NRO Deposits can be repatriated post payment of applicable taxes with a limit of USD 1 million in a financial year.
we need documents as per the guidelines issued by the Reserve Bank of India depending on the source of the funds in the account.

Comparing NRI Fixed Deposits

Foreign Currency Non-Resident Deposit (FCNR)

Non-Resident External Account (NRE)

Non-Resident Ordinary Account (NRO)

Currencies Available

Minimum Deposit

Tenure of Deposit

Interest Rates

Interest Computation

Interest Payment

Deposit Renewal

Tax on Interest

Joint Account Holder

Funding the Account

Repatriation

More resources for NRIs

Foreign Currency
Non-Resident Deposit (FCNR)

Non-Resident
External Account (NRE)

Non-Resident
Ordinary Account (NRO)