Living abroad means juggling more than time zones—your money also has to live in two worlds. Indian banks offer three common account types designed for the way NRIs earn, save and spend.
NRE Account Non-Resident External
Best for: Sending foreign earnings to India.
- What it isAn INR account funded with income earned abroad.
- RepatriationPrincipal and interest can generally be sent abroad freely.
- TaxInterest is tax-free in India while you remain eligible under current law.
- Why it helpsUseful for family remittances, Indian expenses and investments funded from abroad.
Think of it as
Your rupee bridge to India for money earned outside the country.
NRO Account Non-Resident Ordinary
Best for: Managing income earned in India.
- What it isAn INR account for rent, dividends, pension and other India-sourced income.
- RepatriationGenerally limited to USD 1 million per financial year after taxes and documentation.
- TaxInterest is taxable in India and banks normally deduct TDS.
- Why it helpsKeeps India-based income organised and makes tax reporting clearer.
Think of it as
Your home account for the financial ties you still maintain in India.
FCNR Account Foreign Currency Non-Resident
Best for: Saving in foreign currency without INR exchange-rate risk.
- What it isA fixed deposit held in a permitted foreign currency rather than rupees.
- RepatriationPrincipal and interest are fully repatriable.
- TaxInterest is generally tax-free in India while eligibility conditions are met.
- Why it helpsYour savings remain in the deposited currency, reducing direct exposure to INR movements.
Think of it as
A foreign-currency time capsule for money you do not want converted to rupees.
Which one should you choose?
Foreign income → IndiaNRE
Income earned in IndiaNRO
Foreign-currency fixed savingsFCNR
Many NRIs use a combination of all three. Ask where the money comes from and where you will need it next.
Match each part of your financial life to the right account and your money can move between two worlds with far less friction.