Understanding NRE Savings Accounts: Features and Benefits Explained

1. Higher Interest Rates

Though NRE Savings Account interest rates vary across banks, Small Finance Banks like Ujjivan SFB offer higher interest rates on such accounts. This can help you maximise returns on your savings.

2. Tax Benefits: Interest Earned Not Taxable in India

The interest earned on your NRE Savings Account is tax-free in India. However, you should check tax regulations in your country of residence as you may have to declare your interest income earned via NRE Savings Account.

3. Safe and Secure Fund Management

Thanks to NRI Accounts, managing funds in India while living abroad has become much easier. Such accounts facilitate safe and secure transactions.

Point to note: The funds held in an NRE Savings Account are maintained and transacted in Indian Rupees (₹). You can freely convert INR back to your home currency (on the basis on prevailing exchange rates) while transferring funds.

4. Fully Repatriable Funds

An NRE account offers fully repatriable funds, allowing you to transfer money from your NRE account to your overseas bank account without any restrictions. However, for NRO Savings Account, the repatriation limit is restricted to USD 1 million per year as per FEMA guidelines. There are no restrictions as such for NRE Accounts.

5. Convenient Account Access and High Liquidity

Like any NRI Account, you can access your NRE Savings Account anytime with the help of Internet Banking and Mobile Banking. Also, such accounts don't come with any lock-in period and allow easy withdrawal and transfer of funds whenever needed, subject to terms and conditions.

6. No Minimum Balance Requirement

Banks like Ujjivan SFB don't impose any minimum balance requirement for NRE Savings Account. This effectively mitigates the compulsion to maintain a specific balance in the account to keep it functional.

7. Additional Benefits

Few other benefits include inward and outward remittance facilities at competitive exchange rates, investment opportunities in India in various financial instruments like stocks, mutual funds, etc., benefits of Debit Card, safe and secure fund transfer across borders,

You can deposit the following in your NRE Savings Account:

• Remittances from your overseas account or transfers from an NRE (Non-Resident External) or FCNR (B) (Foreign Currency Non-Resident Bank) account.
• Funds from your NRO account up to USD 1 million per financial year, applicable to capital income such as proceeds from fixed deposit maturities, property sales, and the redemption of mutual funds and shares.
• Current income earned in India, including rent, dividends, pensions, and interest.
• Interest earned on the balance in the account and on investments made from the account in India.
• Maturity proceeds from investments made using the NRE account.

Opening an NRE savings account presents numerous benefits and features tailored for NRIs. With tax-free interest, full repatriation of funds, competitive exchange rates, and convenient access for family members, an NRE account offers a secure and efficient way to manage your foreign income in India.

Planning to open an NRI Savings Account to manage your income in India? Ujjivan SFB offers NRE Savings Account that comes with multiple benefits, including safe and secure inward and outward remittance facilities at competitive exchange rates, higher interest rates, Internet Banking and Mobile Banking facilities, and more.

Alternatively, you can browse through Ujjivan SFB product suite - our wide range of financial products are designed to make your financial life better.

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