When you have a bank account, you are well-versed with the concept of savings, deposits, and transactions. The most common type of a deposit is an FD (Fixed Deposit). There are many reasons for the popularity of Fixed Deposits. To name a few:
NRO stands for Non-Resident Ordinary Rupee Account. It is an account dedicated for Non-Resident Indians to help them manage their income earned in India. The interest earned is subject to income tax. When you deposit the money to your NRO account, the foreign currency is automatically converted to INR. Also, the NRO account can be in the form of a Savings BA, Current Account or an FD NRO Account.
The features of this account are:
The benefits of this account are:
Note: The rates offered vary from one bank to another and are subject to change as per the respective bank’s discretion.
| Bank | NRO Interest Rates |
|---|---|
| Allahabad Bank | 4.50% to 7.25% |
| Axis Bank | 3.50% to 7.25% |
| Bank of Baroda | 4.50% to 7.30% |
| Bank of India | 4% |
| Bank of Maharashtra | 4.50% to 7.25% |
| Bharatiya Mahila Bank | 5.00% to 7.25% |
| Canara Bank | 5.25% to 7.25% |
| CitiBank | 3.00% to 6.50% |
| DBS Bank | 5% to 7.2% |
| Dena Bank | 4.5% to 7.25% | Deutsche Bank | 6.00% to 8.50% |
| Dhanalakshmi Bank | 5.00% to 7.10% |
| HDFC Bank | 3.50% to 7.25% |
| ICICI Bank | 6.00% to 7.35% |
| IDBI Bank | 4% |
| Indian Bank | 4% |
| Indian Overseas Bank | 4% |
| IndusInd Bank | 4.00% to 7.25% |
| Jammu and Kashmir Bank | 5.00% to 7.35% |
| Karnataka Bank | 4% |
| Kotak Mahindra Bank | 4.00% to 7.25% |
| Lakshmi Vilas Bank | 5.00% to 7.80% |
| Oriental Bank of Commerce | 4.00% to 7.25% |
| Punjab and Sind Bank | 3.75% to 7.00% |
| Punjab National Bank | 4.25% to 7.00% |
| Saraswat Bank | 4.00% to 7.65% |
| South Indian Bank | 4.00% to 7.30% |
| State Bank of Bikaner and Jaipur | 5.50% to 7.00% |
| State Bank of Hyderabad | 6.00% to 7.50% |
| State Bank of India | 5.50% to 7.00% |
| State Bank of Mysore | 5.75% to 7.50% |
| State Bank of Travancore | 5.25% to 7.00% |
| Syndicate Bank | 5.50% to 6.75% |
| Tamilnad Mercantile Bank | 5.80% to 7.70% |
| Union Bank of India | 5.25% to 7.25% |
| Vijaya Bank | 4.00% to 7.00% |
Yes, an NRO Account is subject to Income Tax as per the Income Tax Act, 1961. Note: The principal amount is not subject to income tax, only the interest earned. The income tax applicable on NRO account stands at 30% along with applicable surcharge and cess. If the interest earned is more than Rs. 1 million, an additional surcharge of 10% is applicable.
Can I transfer money to an NRO account?
Yes, you can transfer money to your NRO account, provided the income has been earned from sources in India.
Can NRO deposits be repatriated?
No, an NRO deposit cannot be repatriated.
Can we deposit Indian Rupees into an NRO account?
Yes, you can deposit Indian Rupees into an NRO account.
Is it mandatory to convert into an NRO account?
Yes, if you (NRI) want to store income from sources in India, you will need an NRO account.
What is the difference between NRI and NRO account?
An NRI is a Non-Resident Indian, a physical human being, while an NRO is a type of bank account offered to NRIs to help them manage their income earned in India.
What is the TDS rates on NRO interest?
The TDS on interest earned from NRO account @30% plus applicable cess and surcharge. The TDS rate is 31.2% on interest upto Rs. 5 million.
