NRO vs NRE Account: What’s The Difference and Which is Better?
In the last post, I provided information about opening a NRE or NRO account in India while you are abroad. However, the procedure of opening a NRE or NRO account is same, many NRIs always get confused about which is the better among the two. Basically, it depends upon your specific needs and requirements. Understanding the basic features and benefits of both these accounts, a NRI could choose either one of them for his or her savings account in India. The main reason NRIs opt for a NRE or NRO account is to maintain a Rupee account in India. Maintaining a rupee account in India helps the NRIs to repatriate overseas earned money back to India as well as to keep India based earnings within India. To get these benefits, there are two options available for a NRI: 1) Non-Resident Rupee (NRE) account and 2) Non-Resident Ordinary Rupee (NRO) account. To get a proper understanding, let’s check out the differences between NRE and NRO accounts: Difference between NRE and NRO accounts: Repatriation: You can repatriate unlimited funds (both Principal and Interest earned) from NRE account whereas there is a restriction after USD 1 Million net including applicable taxes in a […]
