NRE Savings Account :

  • NRE Accounts are maintained in INR. This means that when you deposit the money in the NRE Account, the foreign currency is converted to Indian rupees at the prevailing foreign exchange rates.
  • It is mainly used to house your savings from income that you have earned abroad.
  • The principal amount, as well as the interest, are fully repatriable, i.e., transferable.
  • The interest income earned on the amount in an NRE account is non-taxable in India.
  • You can have other NRIs or Resident Indians as joint account holders on NRO Accounts.

NRO Savings Account/Fixed Deposit Account :

  • NRO Accounts are maintained in INR. This means that when you deposit the money in the NRO Account, the foreign currency is converted to Indian rupees at the prevailing foreign exchange rates.
  • It is used to house funds from your income that you have earned from India or abroad.
  • Income like rent, dividend, pension, etc. can be sent abroad through the NRO Account.
  • Interest income earned on the amount in an NRO Account is liable for TDS or Tax Deductible at Source.
  • You can have other NRIs or resident Indians as joint account holders on NRO Accounts.

FCNR Account :

  • Foreign Currency Non -Resident Accounts have to be opened and maintained in foreign currency.
  • Your principal amount and the interest in an FCNR Account are fully repatriable, i.e., transferable Interest income earned on your money in an FCNR account is non-taxable in India.
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