A non-resident Indian has been residing outside India for at least 120 days of 365 days in the two previous years. While, if an individual moves abroad for employment, they will be declared an NRI immediately. In this case, you need to open an NRI Account to manage your financial needs. The account allows you to meet your financial obligations and make investments on the go.

All details about the types of accounts you can open are necessary before you start. There are three types of NRI Accounts. Let us learn about the different NRI Savings Account you can open and the purpose served by each:

NRE Account

NRE Account or Non-Resident External Account lets you deposit your foreign earnings securely. If you find yourself confused, remember the keyword external that indicates foreign funds. NRE Account is maintained in Indian Rupees. Funds here are held either as Savings Account or Fixed Deposits.

You can open NRI Account jointly with another NRI. An NRE Savings Account keeps your money working by earning you reasonable interest gains. The best part about the account is the interest gains are tax exempted in India. You can also fully repatriate the principal sum and interest gains at any point.

NRO Account

NRO Account or Non-Resident Ordinary Account allows you to hold investments and property rentals that earn your regular income in India. NRO Account enables you to manage your Indian income. You can either open a Savings Account or FD under the account. The NRO Account is maintained in Indian Rupees. If you deposit foreign currencies, they get converted to INR automatically. You can open an NRO Account jointly with another NRI or Indian resident.

NRO Account lets you reap interest gains at a competitive NRO interest rate. Note that interest gains from this account are not tax exempted. Plus, you are only eligible to repatriate funds up to USD 1 million in a financial year.

FCNR Account

Also called Foreign Currency Non-Resident Account can be held by an NRI or a Person of Indian Origin. You can only invest in NRI Fixed Deposit with an FCNR Account. An FCNR Account can be held in different currencies such as US Dollars, Canadian Dollars, Euro, Great Brittan Pound, Australian Dollar, Singapore Dollar, Hong Kong Dollar, Swiss Franc, and Japanese Yen.

If you deposit any other currency, your deposit gets converted to the prescribed currency. You can choose to hold an FCNR Account with another NRI. Interest gains here are tax exempted and fully repatriable.