Banking Made Clear for Global Indians
One of the first — and often most confusing — decisions NRIs face when managing money in India is: Which type of account should I open?
Should you send your earnings to an NRE account?
What if you have income in India?
What’s FCNR and why does everyone keep mentioning it?
Let’s simplify the differences between NRE, NRO, and FCNR accounts so you know exactly where your money should go.
1. NRE Account — Repatriable & Tax-Free
NRE (Non-Resident External) accounts are for NRIs to park foreign income in India.
- Can hold foreign earnings (USD, AED, EUR, etc.)
- Fully repatriable (both principal and interest)
- Tax-free in India
- Maintained in INR
Best for: Parking offshore income, investing in India from abroad
2. NRO Account — For Indian Income
NRO (Non-Resident Ordinary) accounts hold income earned in India:
- Rent, dividends, pension, or local business income.
- Taxable in India (~30% TDS on interest).
- Repatriation allowed up to $1 million/year (with documentation).
- Maintained in INR.
Best for: Managing income sourced within India.
📌 Example: Priya, an NRI in Canada, receives ₹35,000/month from a flat she owns in Pune. She uses an NRO account to collect rent and pay local bills.
3. FCNR Account — Term Deposits in Foreign Currency
FCNR (Foreign Currency Non-Resident) accounts are fixed deposits held in foreign currency:
- Avoids currency conversion risk.
- Repatriable.
- Interest is tax-free in India.
- Tenure: 1 to 5 years.
- Currencies: USD, GBP, EUR, AUD, etc.
Best for: NRIs seeking stable returns without INR exposure.
🧠 Pro Tip: FCNR protects against INR depreciation — ideal for short-term capital preservation.
Which One Should You Use?
| Use Case | Best Account |
|---|---|
| Investing Indian income | NRO |
| Investing foreign earnings | NRE |
| Currency-risk-free savings | FCNR |
| Day-to-day local expenses | NRO |
| Repatriation-friendly savings | NRE / FCNR |
Many NRIs use a combination of all three based on income sources, investment preferences, and repatriation needs.
How Wyizer Simplifies This
At Wyizer, we help you:
- Decide your ideal account mix.
- Coordinate with Indian banks for remote account opening.
- Optimize interest returns + repatriation workflows
- Ensure tax compliance & DTAA alignment.
You focus on investing. We take care of the banking clutter. [Get Help Setting Up NRI Accounts] or [Talk to a Wyizer Advisor].
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