AskNRIGuru

NRE, NRO or FCNR: which NRI account do you need?

The right account depends on where the money was earned, whether you want it back abroad, and whether you want to avoid rupee risk. Answer five questions to get a plan.

Rules last checked on against official sources. See the rules we use.

Your money
What money do you want to keep in India?
Do you already have an ordinary resident savings account in India?
Do you want to avoid the risk of the rupee falling?For money you will take back abroad
Can you lock the money away for at least a year?
Do you plan to move back to India in the next two years?

The three accounts at a glance

NRENROFCNR(B)
What goes inMoney earned abroadIncome earned in India, and money from abroadMoney earned abroad, kept in foreign currency
CurrencyRupeesRupeesUSD, GBP, EUR and other permitted currencies
Indian tax on interestTax-free while you are a non-resident under FEMATaxable; banks deduct TDS at 30% plus surcharge and cessTax-free while you are NRI or RNOR
Taking money abroadFreely, principal and interestUp to USD 1 million a year from balances; current income after taxFreely
FormSavings or fixed depositSavings or fixed depositFixed deposit only, 1 to 5 years

Interest that is tax-free in India may still be taxable in the country where you live. For the details, read NRE vs NRO vs FCNR and how to repatriate money from an NRO account.

Sources

This calculator gives an estimate from the figures you enter and the rules shown above. It is general information, not tax or legal advice. Tax law has exceptions this tool may not cover, so check your final position with a chartered accountant before you act. Nothing you type here leaves your browser.