10 Best NRE Savings Accounts for NRIs

10 Best NRE Savings Accounts for NRIs

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.

Features and offerings of NRE accounts

  • NRE account is an Indian Rupee account.

  • Initial funding of NRE accounts is generally done through fund transfer from any other NRE or NRO account held by the NRI or by depositing foreign currency or traveller’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 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.

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

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 2 lakhs is offered free with their debit card.

  • A monthly average balance of Rs. 10,000 needs to be maintained in NRE Accounts.

  • The bank offers interest at the rate of 4% on a daily balance of greater than 50 lakhs and 3.5% for a daily balance of less than 50 lakhs. Interest is paid on a quarterly basis.

  • Personalised relationship officer is assigned to handle service requirements.

Kotak Mahindra Bank NRE Accounts:

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

NRE Rupee Savings Account-

  • Average quarterly balance of Rs 10000 must be maintained.

  • Interest is paid at the rate of 4 % 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.

  • 4% 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 4% for balance more than 50 lakhs, and 3.5% 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

BI 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 3000, Rs 2000 and Rs 1000 for Urban, Semi-Urban and Rural branches respectively need to be maintained.

  • Interest rates are payable on the basis of the daily closing balance. Rate of 4% is applicable if the closing balance is greater than Rs 1 crore and 3.5% if the balance is less than Rs 1 crore.

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 complimentarily 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.

Ratnakar Bank ACE NRE Savings Account:

Ratnakar 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 5.5% on daily balances upto Rs. 1 lakh, 6% on daily balances from Rs 1 lakh to Rs 10 lakhs and 6.5% for daily balances from Rs 10 lakhs to Rs 5 crore.

  • 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 4 percent 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

HDFC Bank also offers attractive features to their NRE Account holders.

  • International Debit Card is provided free of cost.

  • 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 and Rural branches respectively.

  • Interest on savings is payable on a quarterly basis. Rates applicable are 3.5% and 4% 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 of 6% & 7% on balances up to Rs 1 lakh and greater than Rs 1 lakh respectively.

  • Feature of quarterly pay-out on NRE Savings Account.

  • Minimum average balance to be maintained in NRE account is 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.

Citi Bank NRE Account

Citi Bank India refers to the offshore branches of Citi Bank in India. This bank is very popular amongst NRIs.

  • Citi Bank 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 3.5%. This interest is credited to the account twice a year in the months of March and September.

 

Also Read: Difference between NRO and NRE Accounts

 

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