10 Best NRE Savings Accounts for NRIs

14 Dec 2020 // 64 min read // Saving Account
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Non-Resident External or NRE account is a rupee account opened by NRIs to facilitate the transfer of funds to India. Funds which are generated overseas in any other currency are transferred to India in Rupees and held in NRE accounts.

Top 10 Banks NRE Saving accounts for NRIs in 2021

Bank NameInterest rate (%) Per AnnumMinimum Balance to be Maintained
Axis Bank3% to Repo + (-0.65%)Rs.10,000 or Rs. 25,000, depending on account type
Kotak Mahindra Bank3.50%Rs.10,000
ICICI Bank3% to 3.50%Rs.10,000
SBI Bank2.70%Rs. 1 lakh for Metro & Urban areas, and Rs. 50,000 for Semi-Urban & Rural areas.
Bank of Baroda2.75%Rs. 1,000 
HDFC Bank3% to 3.50%Rs.10,000 for Metro/Urban branches & Rs.5,000 for Semi-Urban/Rural branches.
Yes Bank4% to 6%Rs. 5,000 to Rs. 10,000
Citibank2.75% to 3.75%Rs. 80,000
RBL Bank4.75% to 6.75%Rs. 50,000

Table of Contents: 10 Best NRI accounts in India

What is NRE and NRO Account?

An NRE account is a savings bank account that can be opened in India in the name of an Non-Resident Indian (NRI), to park their foreign earnings. Whereas, an NRO account is a bank account that can be opened in India in the name of an Non-Resident Indian (NRI), to manage the income (such as rent, dividend, pension, interest, etc.) earned by them in India.

Best Bank for NRE Account in India

Kotak Mahindra Bank’s NRE Rupee Savings Account and NRE Platina Savings Account, ICICI Bank NRE Savings Account, and Deutsche Bank Value plus NRE Savings Account are some of the best NRE accounts in India right now.

What is the difference between NRE and NRO account?

NRE AccountNRO Account
Bank accounts opened in India in NRI’s name to park their foreign earnings.Bank accounts opened in India in NRI’s name to manage the income earned by them in India.
Balance and interest earned are exempt from tax.The interest earned is taxable at 30% as per the Income Tax Act 1961.
Principal and interest amount can be transferred to a foreign account. Principal amount can be remitted only up to USD 1 million in a financial year.
NRIs can open joint NRO accounts with one or more NRIs/Indian citizens. Joint NRE accounts can only be opened with another NRI.
Income originating within India can not be deposited in the NRO account. Income originating within India can be deposited into an NRO account.
If the deposit and withdrawal is made in INR, no exchange rate risk is involved; Currency fluctuations make you prone to exchange rate risks.

Best Bank NRI Account in India

ICICI Bank NRE Savings Account, Bank of Baroda NRE Savings Account, and Axis Bank NRE Account are some of the best NRI accounts in India. They come with some attractive features like low minimum balance requirement, multi-city cheque books, tax-advisory services, and good interest rates.

Compare Best banks NRE Savings Account Interest Rates in India 2021

Following is the NRE Savings Account Interest Rates Comparison based on high to low interest rate provided by the bank: 

Name of the BankApplicable Rate of Interest Rate (Per Annum)
RBL Bank4.75% to 6.75%
Yes Bank4% to 6%
Kotak Mahindra Bank3.50%
ICICI Bank3% to 3.50%
HDFC Bank3% to 3.50%
Axis Bank3% to Repo + (-0.65%)
Citibank2.75% to 3.75%
Bank of Baroda2.75%
SBI Bank2.70%

Features and Benefits of NRE Saving accounts

  • NRE saving account is an Indian Rupee account.
  • Initial funding of NRE saving accounts is generally done through fund transfer from any other NRE or NRO account held by the NRI or by depositing foreign currency or traveler’s cheques available with him.
  • These accounts can be held jointly with NRIs only. Holding NRE accounts with resident family members is not permissible. There is however a provision to issue a mandate or power of attorney which authorises a family member to operate the NRE account when the NRI account holder is away.
  • NRE accounts also allow nominations.
  • Repatriation of both principal and interest components is permissible for NRE accounts.
  • Savings Account, Current Account as well as Fixed Deposits are a part of NRE account services.
  • Deposition and withdrawal for NRE Accounts is in foreign currency and Indian rupee respectively.
  • Balances held in NRE saving Accounts are subject to risks of currency exchange.
  • Taxation rules are not applicable to NRE accounts.
  • Most of the banks operating in India offer NRI services. The features of NRI Accounts designed by them vary in terms of Minimum account balances, interest rates offered, Internet and phone banking facilities, functioning of ATM and debit cards offered and special services provided.

Best Bank for NRI Saving Account

Some of the best banks for NRI saving account are Axis Bank, ICICI, HDFC, Kotak Mahindra, Bank of Baroda, Deutsche Bank, and the State Bank of India (SBI). They offer attractive rates and best services. Different banks offer different features like interest rates,  maintenance facilities, ease of account opening, remittances and other so on, that differentiates them.

How to choose the best NRE Saving Account?

To choose the best NRE Savings Account, you should first of all choose the bank that offers service in the country of your residence. This can come handy when you need urgent customer support. Besides, opt for a bank that offers minimum account balance requirements and attractive interest rates on deposits in NRE account. These accounts basically work like Savings Account. You will also get an international debit card for withdrawals. Learn about the charges and costs attached. In all you must opt for ease of operations, such as simple documentations, robust ATM network in your country of residence, customer friendly mobile & net banking facilities, and an affordable money transfer solution. Make a comparison on the basis of these points and choose the best NRE Saving account.

  • NRE account is an Indian Rupee account.
  • These accounts can be held jointly with NRIs only.
  • Holding NRE accounts with resident family members is not permissible. There is however a provision to issue a mandate or power of attorney which authorises a family member to operate the NRE account when the NRI account holder is away.
  • NRE accounts also allow nominations.
  • Repatriation of both principal and interest components is permissible for NRE accounts.
  • Savings Account, Current Account as well as Fixed Deposits are a part of NRE account services.
  • Deposition and withdrawal for NRE Accounts is in foreign currency and Indian rupee respectively.
  • Taxation rules are not applicable to NRE accounts.
  • The features of NRI Accounts designed by each bank vary in terms of minimum account balances, interest rates offered, Internet and phone banking facilities, functioning of ATM and debit cards offered and special services provided.

NRE Savings Account facilities offered by top Indian Banks have been discussed below:

10 Best NRE Savings Accounts in 2021 - Key Features

Axis Bank NRE Account:

Axis Bank is one of the leading Private Sector banks. Features of Axis Bank NRE account are as follows.

  • Axis Bank NRE Account is packed up with features such as low minimum balance requirement, multi city cheque books, tax-advisory services, and online transaction capabilities.
  • The structuring of Axis NRE Account is such that it is equally suitable for all types of users, be it a student studying abroad, a businessman moving around the globe or a person deputed overseas.
  • The bank allows a resident to handle the account in absence of the NRI whose account has been opened.
  • New account holders receive a welcome kit which comes with a debit card and a cheque book.
  • Accidental coverage of Rs. 2 lakhs is offered free with their debit card.
  • A monthly average balance of Rs. 10,000 or Rs. 25,000 (depends on account type) needs to be maintained in NRE Accounts.
  • The bank offers interest at the rate of 3% on a daily balance of greater than Rs. 50 lakhs. 3.50% for balance between Rs. 50 lakhs to Rs. 10 crores, Repo + (-0.65%) for balance between Rs. 10 crores to Rs. 100 crores, Repo + (-0.25%) for balance between Rs. 100 crores to Rs. 200 crores, and Repo + (0.00%) for balance between Rs. 200 crores and Rs. 2500 crores. Floor price for all the Repo-linked slabs is fixed at 3.60% p.a. Interest is paid on a quarterly basis.
  • Personalised relationship officer is assigned to handle service requirements.
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Kotak Mahindra Bank NRE Accounts:

Kotak Mahindra bank offers different types of NRE and NRO accounts with varied features. Kotak NRE Accounts may be selected depending on the account opener’s requirements.

NRE Rupee Savings Account-

  • Average quarterly balance of Rs. 10,000 must be maintained in this NRE savings account.
  • Interest is paid at the rate of 3.50% on the daily closing balance and is payable on a half yearly basis.
  • A Global Debit Card is issued which allows access to ATMs and merchant locations anywhere across the globe.
  • Home banking services, Payable at par cheque book and internet banking facilities are available.
  • Dual opportunity to manage cash flows and earn higher interest at the same time because of two way sweep.
  • Easy remittances to India by mode of cheque or click2remit or wire transfer.
  • Preferential Forex rates available for transactions of 10000 dollars or equivalent.

NRE Platina Savings Account-

  • A host of products and services are preferentially priced.
  • Global debit card allows access to ATMs and merchant locations anywhere across the globe.
  • Average quarterly balance of Rupees must be Rs 1 lakh.
  • Dedicated relationship manager assists you for your needs.
  • Preferential Forex rate is provided for transactions above USD 25000 and above.
  • 3.50% interest is earned on a quarterly basis.
  • Payable at par cheque book and internet banking facilities are available.

ICICI Bank NRE Savings Account:

  • ICICI Bank is one of the most prestigious Indian banks with a wide network in many countries. It is a large bank with a presence in the USA, Middle East and many others across the globe.
  • Interest payable on the basis of the end of the day balance. Interest rate earned is 3.50% for balance of Rs. 50 lakhs or above, and 3.00% for balance less than 50 lakhs.
  • A minimum balance of Rs 25000 and Rs 10000 needs to be maintained at the account level and customer id level respectively.
  • International ATM cum Debit card is provided to the account holder. Free ATM Card and cheque book are provided to the mandate holder.
  • Free money transfers available through various offline and online modes at preferential exchange rates.
  • Hand-picked exclusive offers and advantages catering to customer need both in India and abroad.

SBI NRE Account:

  • SBI is the largest Public Sector Bank of India with the deepest penetration in India and presence in a large number of countries abroad. Presence in USA, UK, Canada, and the Middle East makes this the most widely spread Indian Bank.
  • Unlike NRE accounts with all other banks, SBI NRE account can be opened with zero balance. It is however suggested to fund the account as soon as possible to avoid penalty on non-maintenance of minimum balance.
  • Minimum balance of Rs. 1 lakh for Metro & Urban areas, and Rs. 50,000 for Semi-Urban & Rural areas need to be maintained.
  • Interest rates are payable on the basis of the daily closing balance. Rate of 2.70% is applicable.

Deutsche Bank Value plus NRE Savings Account:

The salient features of the NRE Account offered by Deutsche Bank are as follows:

  • Instant availability of account opening kit.
  • The account holder needs to maintain a monthly average balance of Rs 1 lakh or hold a portfolio of Rs 1.5 lakhs as assets under management with the bank.
  • An International Gold Debit Card is offered complimentary on opening NRE Account with Deutsche Bank. This card comes with an array of rewards on usage, petrol surcharge waiver and lost card insurance.
  • Global ATM Alliance Network facilitates free acceptance of their Debit Cards at ATMs of leading International Banks.
  • You can choose mandate for the Power of Attorney.
  • Transaction ease and accessibility due to Internet Banking, Phone Banking and ATM Banking.
  • Free access to consolidated quarterly statements.
  • Deutsche Bank does not extend this facility to residents of Canada and USA.
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Ratnakar Bank or RBL Bank ACE NRE Savings Account:

Ratnakar Bank (also known as RBL Bank) offers the most attractive rates of interest. Few features of ACE NRE Account are:

  • Ratnakar Bank NRE Account is one of the best in terms of interest payment in Savings Accounts of this category. This NRE Account is most recommended because of the rate of interest offered. The bank offers 4.75% on daily balances upto Rs. 1 lakh, 6% on daily balances from Rs. 1 lakh to Rs. 10 lakhs and 6.75% for daily balances from Rs. 10 lakhs to Rs 5 crores.
  • The banks offer Power of Attorney or Mandate Facility, International Debit Card, Free SMS Alerts, internet banking and payable at par cheque book.
  • A monthly average balance of Rs. 50,000 needs to be maintained. The shortfall in monthly average balance attracts non- maintenance charges.

Bank of Baroda NRE Savings Account:

  • Commonly known as India’s International Bank has its presence across the globe. With branches in USA, China, UAE, Singapore, Mauritius, Australia, and many more countries, Bank of Baroda is a market leader when it comes to NRE services.
  • Rate of interest at 2.75% on daily balances.
  • With an account in any branch in India, free remittance facility can be availed.
  • Free issuance of banker’s cheque, demand draft and cheque book on opening NRE account.
  • Free ATM Card issuance and locker allotment at preferential rates.
  • Custodial services extended free of cost.
  • Extension of preferential exchange rates.
  • Availability of internet and mobile banking.
  • No additional charges for collection of a cheque drawn on own account, transactions related to currency or traveller cheques during a personal visit to India.

HDFC Bank NRE Account:

  • International Debit Card is provided free of cost with HDFC NRE Account.
  • Allows appointment of the mandate for operating the NRE Account in the absence of the account holder.
  • The Account offers options of anytime Internet Banking, personalised cheque book, availing locker facilities in India at select branches, facility to link NRE Account with Investment Saving Account thereby easing the process of investing in India and payment of utility bills post a simple registration process.
  • A minimum average balance of Rs. 10,000 and Rs. 5000 needs to be maintained in case of Metro/Urban and Rural/Semi-Urban branches respectively.
  • Interest on savings is payable on a quarterly basis. Rates applicable are 3.00% and 3.50% for balances less than Rs. 50 lakhs and greater than Rs. 50 lakhs respectively.
  • Funds can be remitted through IndiaLink, Quickremit and Telegraphic transfers. Draft facilities are also free for HDFC NRE account holders.

Yes Bank NRE Savings Account:

  • Yes Bank is comparatively a new bank but it is very popular with NRIs. The account offers a lot of benefits. The biggest edge is the high rate of interest they offer.
  • Ease of Account funding through an alliance with corresponding banks worldwide.
  • The facility of grouping balances for minimum account balance for a person with both NRE and NRO accounts. Combined sum maintained in both accounts will be considered, and the customer does not have the hassle to maintain a minimum balance in both accounts.
  • Intercity banking facility eases the banking process for NRIs when they visit India.
  • Mandate facility allows any family member to access the account in the absence of the account holder.
  • Interest rates applicable are 4% on balances up to Rs. 1 lakh. 5% for balances between Rs. 1 lakh to Rs. 10 lakhs, and 6% for balance greater than Rs. 10 lakhs.
  • Feature of quarterly pay-out on NRE Savings Account.
  • Minimum average balance to be maintained in NRE account is Rs. 5,000 to Rs 10,000.
  • Personal Relationship Manager is assigned to assist customers.
  • Exciting offers and discounts are extended to account holders.
  • Debit Cards issued free of cost come with Lost card Liability Protection and purchase protection.

Citibank NRE Account:

  • Citibank India refers to the offshore branches of Citibank in India. This bank is very popular amongst NRIs.
  • Citibank NRE Account provides NRIs access to an array of products and services.
  • The initial amount for opening an NRE Account is USD 5000 for USA and Canada. This initial amount varies depending upon the country.
  • Free Platinum Debit Card is provided to NRE Account holders.
  • Interest is calculated on the basis of daily closing balance at the rate of 2.75% to 3.75%. This interest is credited to the account twice a year in the months of March and September.

Best NRE Savings Accounts: FAQs

What is an NRE Account?

An NRE account is a savings bank account that can be opened in India in the name of an Non-Resident Indian (NRI), to park their foreign earnings.

What is an NRO Account?

An NRO account is a bank account that can be opened in India in the name of an Non-Resident Indian (NRI), to manage the income (such as rent, dividend, pension, interest, etc.) earned by them in India.

What is the benefit of NRI account?

Key NRI account benefits are:

  • The facility to deposit and manage your income that you have earned abroad as well as in India.
  • Funds transfer for free at attractive exchange rates (for NRE account)
  • No need of maintaining high balance in NRE and NRO accounts.

Which Bank is best for NRI Account?

Axis Bank, ICICI, HDFC, Kotak Mahindra and SBI are some of the best banks to open NRI accounts. 

How many NRE accounts can be opened?

The Reserve Bank of India (RBI) has authorised that a non-resident Indian (NRI) can open three types of accounts in India. So, you can choose any best bank for NRE account for up to three accounts.

Also Read: Difference between NRO and NRE Accounts

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