A few weeks back, I learned about the difference between NRE accounts and savings accounts. I was aware of what a savings account was but I never knew about NRE accounts. I came to know about it while searching for accounts to deposit my earnings in USD. I have added all the information about the NRE account vs savings account that I am aware of below.
NRE Vs Savings Account: How Are They Different?
These bank accounts have quite a lot of differences. For example, NRE accounts are designed for NRIs so that they can manage their overseas earnings easily in India. On the other hand, saving accounts are used by people for regular savings and day-to-day transactions. I have added a few more details about these accounts in the below table.
Particulars |
NRE Accounts |
Savings Accounts |
Deposit Currency |
Only foreign currencies can be deposited, but the account is maintained in INR. |
Only INR can be deposited. |
Joint Accounts |
NRIs can open joint accounts with other NRIs or Indian residents. |
Citizens of India can only open joint accounts. |
Repatriation |
Funds can be easily transferred to the account holder's resident country without any issues. |
Outward money order is only allowed for specific reasons approved by Foreign Exchange. |
Tax Implications |
All deposits are tax-free. |
Interest earned up to Rs. 10,000 is tax-free. |
And that’s all I have learned about the difference between an NRE and a savings account. I hope you find this helpful.
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Authors Of The Question
NRE Account Vs Savings Account?
Jiah
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1 Answers
32 days
2024-12-04T09:22:18+00:00 2024-12-04T09:22:18+00:00Comment
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