What are the differences between NRE Account and NRO Account?

Question

Accepted Answer · 2019-07-30

Similarities and Differences between NRE and NRO Account

	NRE Saving Account	NRO Saving Account
Account Type	NRE account can be a Saving Account or Current Account	NRO Account can be a Saving or Current Account
Average Monthly Balance in Account	Rs 10,000	Rs 10,000
Repatriation	Principal and Interest earn is fully repatriable	Restricted or partially repatriable (upto $ 1 million in a financial year)
Taxation	NRE Account is tax free	Interest earn and credit balance has tax liability
Earnings in India	Any type of earning in India cannot be deposited in NRE Account	Earnings in India can be deposited in NRO Account
Joint Account	NRE Account can only be jointly open with NRE only	Can be open jointly with NRI or close relative in India