What is Karnataka Bank NRE Account?
Karnataka Bank NRE Account is designed for Non-Resident Indians (NRIs) to manage their income earned abroad in Indian rupees. This account provides the benefit of repatriation of funds back to the foreign country and ensures tax-free interest earnings in India. Available in both savings and fixed deposit formats, the NRE account offers convenient online banking services, allowing NRIs to access their funds and perform transactions seamlessly from any location worldwide.
Types of Karnataka Bank NRE Accounts
The different types of NRE accounts available for NRIs with Karnataka Bank are mentioned below:
-
Karnataka Bank NRE Savings Account
- Made for NRIs: This savings account is designed for Non-Resident Indians who want to securely save their income earned abroad.
- Global Flexibility: You can move your funds easily across borders, as the account is fully repatriable.
- Tax-Free Growth: Earn interest that is exempt from Indian income tax, helping you grow your savings.
- Open to NRIs/PIOs: This account is available to NRIs, PIOs, and OCIs, making it accessible to a wide range of international Indian communities.
- Secure and Convenient: It provides a safe way to save your money while maintaining a connection to your home country.
-
Karnataka Bank NRE Fixed Deposit Account
- Tailored for NRIs: This fixed deposit is designed for Non-Resident Indians who want to securely invest their foreign earnings and ensure growth.
- Safe and Tax-Free: It provides a secure investment option with tax-free interest in India.
- Full Repatriation: You can transfer both the principal and interest back to your country of residence whenever you need.
- Flexible Tenure: Choose from flexible tenures ranging from 1 to 10 years to suit your investment needs.
- Tax-Free Interest: Enjoy interest earnings that are exempt from Indian income tax, maximizing your returns.
-
Karnataka Bank NRE Current Account
- Made for NRIs: This account is specially designed for Non-Resident Indians who need to manage income from abroad, such as business or job earnings.
- Easy Global Transfers: It allows you to transfer funds to India and handle foreign income smoothly.
- Convenient to Use: This account makes it easy to manage your finances across different countries.
- Access Anytime, Anywhere: You can securely access and manage your account from anywhere in the world at any time.
- Fast Transactions: International payments are processed quickly, ensuring efficient handling of your financial needs.
-
Karnataka Bank NRE Current Account
- Steady Savings for NRIs: This plan allows NRIs to deposit regular amounts and earn steady interest on funds earned abroad.
- Tax-Free Earnings: Enjoy tax-exempt interest on your deposits, maximizing your savings.
- Global Accessibility: You can repatriate your funds and access your savings easily from anywhere in the world.
- Family-Friendly: Create joint accounts with close relatives, making it easier to plan and manage finances together.
Karnataka Bank NRE Savings Account Interest Rates
| End-of-day Balance |
Interest Rate (% p.a.) |
| ≤ ₹1 lakh |
2.75% |
| > ₹1 lakh to ₹10 lakh |
2.75% |
| > ₹10 lakh to ₹50 lakh |
2.75% |
| ₹50 lakh to ₹100 lakh |
3.50% |
| > ₹100 lakh |
4.00% |
*Interest rates are effective from January 2, 2025.
Karnataka Bank NRE Term Deposit Account Interest Rates
Following are the interest rates for Karnataka Bank NRE Term Deposits (callable and non-callable):
-
NRE Rupee Non-Callable Term Deposits
| Maturity Period |
Deposits From ₹2 Cr to < ₹3 Cr |
Deposits ₹3 Cr to ₹5 Cr |
Deposits Above ₹5 Cr to ₹10 Cr |
| 1-2 years |
7.50% |
7.50% |
7.50% |
| 375 days |
7.75% |
7.75% |
- |
| >2 years - 3 years |
6.75% |
6.75% |
6.75% |
*Interest rates are effective from January 2, 2025.
-
NRE Rupee Callable Term Deposits
| Maturity Period |
Deposits Below ₹3 Crore |
Deposits ₹3 Crore to ₹5 Crore |
Deposits Above ₹5 Crore to ₹10 Crore |
| 375 days (FD & ACC) |
7.50% |
7.50% |
- |
| 1 year to 2 years |
7.25% |
7.25% |
7.25% |
| Above 2 years to 3 years |
6.50% |
6.50% |
6.50% |
| Above 3 years to 5 years |
6.50% |
6.50% |
6.50% |
| Above 5 years to 10 years |
5.80% |
5.80% |
5.80% |
*Interest rates are effective from January 2, 2025.
Eligibility Criteria to Open Karnataka Bank NRE Account
The following category of individuals are eligible to apply for the Karnataka Bank NRE Account in India:
- NRIs: Indians working or doing business outside India.
- Students Abroad: Indian students pursuing education overseas.
- PIOs/OCIs: Foreign passport holders with Indian origin (except Bangladesh/Pakistan).
- Spouses of Indians: Foreign nationals married to Indian citizens.
- Indian Citizens: As per the Constitution or Citizenship Act, with Indian ancestry.
Documents Required to Apply for Karnataka Bank NRE Account
The essential documents required to open a Karnataka Bank NRE Account are listed below:
-
Documents Required by NRIs:
- Valid Indian passport.
- Employment/work visa, student visa, or relevant visa.
- Proof of overseas residence.
- PAN card or Form 60.
- Document photocopies attested by overseas Indian banks, notaries, magistrates, or Indian embassies/consulates for off-site verification.
-
Documents Required by PIOs/OCIs:
- Valid foreign passport.
- Relevant visa of the overseas country.
- Proof of overseas residence or resident card.
- PAN card or Form 60.
- Document photocopies attested by notaries, magistrates, or Indian embassies/consulates.
Benefits of Opening a Karnataka Bank NRE Account
The key benefits of opening an NRE Account with Karnataka Bank are as follows:
- Tax-Free Interest: The interest earned on Karnataka Bank NRE accounts is tax-free in India, so NRIs can keep more of their earnings.
- Foreign Currency Deposits: NRIs can deposit their earnings in Indian rupees, making currency management and conversion easier.
- Easy Repatriation: NRIs can repatriate both the principal and interest without any restrictions, simplifying the transfer of funds to India.
- Loan Against Deposits: NRIs can get loans up to 90% of their NRE fixed deposits, giving them more financial flexibility.
- Attractive Interest Rates: Karnataka Bank offers competitive interest rates on NRE fixed deposits, up to 7.50% per annum, as of January 2025, depending on the tenure.
- Flexible Tenure Options: The bank offers flexible deposit periods, starting from just 7 days up to 120 months, to suit different investment needs.
- Nominee Facility: Account holders can assign a nominee, ensuring that the funds are passed on to their beneficiaries in case of an unfortunate event.
- Periodic Interest Payments: Interest can be paid monthly, quarterly, or annually, providing regular income from the investment.
Conclusion
Karnataka Bank NRE account is a good option for NRIs to manage their foreign earnings in India. It offers tax-free interest, full repatriation of funds, and competitive interest rates. The account also comes with benefits like free inward remittances, discounted locker charges, and easy access to digital banking services. It is a convenient and secure way for NRIs to maintain financial connections with India.
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