Top 10 NRO and NRE Banks in India

For any Non-Resident Indian (NRI) willing to invest in India, a savings account is a must which cannot be the regular savings account offered to the residents of India. Hence, to uplift the investment opportunity for NRIs, some of the top banks have come up with specialized deposit accounts especially for them, that is, NRO (Non-Resident Ordinary) account and NRE (Non-Resident External) account.

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7.7 Crore

Registered Consumer

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

NRO and NRE accounts are specially designed keeping in mind the financial needs of Non-Resident Indians. Non-Resident Ordinary (NRO) accounts, on one hand, allows NRIs to deposit their income earned in India from various sources like rent, dividends, etc., whereas the Non-Resident External (NRE) accounts allow NRIs to deposit their foreign income or earnings to India.

Here are the top 10 NRO and NRE Banks in India where an NRI can surely think of putting their savings and receive decent returns.

Top 10 NRO and NRE Banks in India

Top 10 NRO Banks in India

Bank Name	Regular Interest Rates	Senior Citizen Interest Rates	Minimum Balance
Axis Bank	2.70% - 5.50%	3.50% - 7.25%	Rs. 10,000 - Rs. 10 lakhs
Bank of Baroda	2.90% - 5.30%	4.50% - 7.30%	Rs. 1,000
Citi Bank	2.75% - 3.90%	NA	Rs. 2 lakhs
DBS Bank	3.00% - 5.00%	3.00% - 5.00%	Rs. 50,000
HDFC Bank	2.75% - 5.50%	3.25% - 6.25%	Metro Areas - Rs. 10,000 Semi-urban Areas - Rs. 5,000
ICICI Bank	2.50% - 5.45%	NA	Rs. 10,000
Kotak Mahindra Bank	2.75% - 4.50%	2.75% - 4.50%	Rs. 10,000
RBL Bank	3.25% - 6.25%	NA	Rs. 50,000
State Bank of India	2.90% - 5.40%	3.40% - 6.20%	Rs. 1 lakh
Yes Bank	5.00% - 7.00%	NA	Rs. 10,000

Disclaimer: †† Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Top 10 NRE Banks in India

Bank Name	NRE Interest Rate for less than Rs. 2 crores per annum
Bank Name	1 year	1 year to 3 years	3 years to 5 years	5 years to 10 years
Axis Bank	5.15%	5.40%	5.40%	5.50%
Bank of Baroda	4.90%	5.00% - 5.10%	5.25%	5.25%
Federal Bank	5.10%	5.10% - 5.50%	5.35%	5.50%
IndusInd Bank	6.50%	6.50%	6.50%	6.25%
Syndicate Bank	5.20%	5.20% - 5.40%	5.50%	5.50%
Punjab National Bank	5.20%	5.20%	5.30%	5.30%
Kotak Mahindra Bank	4.50%	4.50% - 5.00%	5.10% - 5.25%	5.30%
RBL Bank	5.40%	6.10%	6.30%	6.30%
State Bank of India	5.00%	5.00% - 5.10%	5.30%	5.40%
Yes Bank	6.25%	6.25% - 6.50%	6.75%	6.75%

Difference Between NRO and NRE Accounts

Particulars	NRO Account	NRE Account
Account Purpose	Account opened with earnings made in India from Indian assets or investments like dividend, rent, interest, etc. and denominated in Indian Rupees	Account opened with earnings from the foreign residing country and denominated in (INR) Indian Rupee
Account Type	Savings, Recurring, or Current	Savings, Recurring, or Current
Currency denomination	INR	INR
Joint holding facility	Can be held with other Indian residents or NRI	Can be held with other NRI
Tenure of fixed deposits	As applicable to resident accounts	From 1 to 3 years. For Asset-Liability Management purposes account can be held for a longer period
Repatriation Facility	Interest earned is fully repatriated	Balance is fully repatriable
Exchange rates	Does not fluctuate in any circumstance	Fluctuates with respect to existing exchange rates
Taxability	Interest income is taxable	Tax is exempted on the interest income

How to Choose the Right NRI Account?

Many banks are offering Non-Resident Indian (NRI) account options in India but the main question arises as to which bank one should choose for investment? Here are some reasons one should take into consideration while looking for an NRI bank account in India:

NRO Vs NRE Account

It is important to know what is the source of income of the NRI before opting for either NRE or NRO deposit account option. Non-Resident External (NRE) accounts allow NRIs to deposit their foreign income or earnings to India whereas Non-Resident Ordinary (NRO) accounts allow NRIs to deposit their income earned in India from various sources like rent, dividends, etc.
Deposit Interest Rate

Every bank offers different Interest rates, both for their NRE Accounts and NRO Accounts. An NRI, before making any kind of investment, should study carefully and select the Bank that suits their requirements the best.
Minimum Balance Maintenance

Different banks have different minimum balances for maintenance if one opts for an NRE or NRO Deposit account. An NRI should go for a bank that matches their financial ability to maintain that minimum balance and not leave them over-burdened.
Convenience

Every Non-Resident Indian (NRI) should go for the bank they find most convenient. For example, some look for easy accessibility of the NRE/NRO account, other looks for nearby branch, online banking facility, etc.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-01-2025

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).