Best NRE Savings Accounts for NRIs

If you’re an NRI, you need an NRE account.

It’s that simple.

An NRE (Non-Resident External) account is how you park your foreign earnings in India. The interest is tax-free. The money is fully repatriable. And it’s the foundation for managing your finances back home.

But with so many banks offering NRE accounts, which one should you choose?

I’ve been helping NRIs navigate Indian banking since 2017. In our community, banking questions come up constantly. Which bank has the best rates? Which one has the smoothest online experience? Which one won’t frustrate you with paperwork?

Let me break it down for you.

Quick Comparison: Best NRE Savings Accounts (2025)

Here’s a snapshot of the top NRE savings accounts:

Bank	Interest Rate	Minimum Balance	Best For
IDFC FIRST Bank	Up to 7.25% p.a.	₹25,000 AMB	Highest interest rates
HDFC Bank	3.00% – 3.50% p.a.	₹10,000 AMB	Branch network, reliability
ICICI Bank	2.50% – 3.50% p.a.	₹10,000 – ₹25,000 AMB	Digital banking, NRI services
SBI	2.50% – 2.70% p.a.	₹50,000 – ₹1,00,000 AMB	Trust, global presence
Axis Bank	3.00% – 3.50% p.a.	₹10,000 AMB	Good balance of features
Kotak Mahindra	3.50% – 4.00% p.a.	₹10,000 – ₹25,000 AMB	Competitive rates
Yes Bank	4.00% – 6.00% p.a.	₹10,000 AMB	Higher interest rates
HSBC	3.50% – 7.00% p.a.	₹1,50,000 AQB	Premium NRI services

AMB = Average Monthly Balance, AQB = Average Quarterly Balance Note: Interest rates change frequently. Please verify with the bank before opening an account.

What is an NRE Account and Why Do You Need One?

Before diving into specific banks, let’s make sure we’re on the same page.

An NRE account is a bank account in India where NRIs can deposit their foreign earnings. The money gets converted to Indian Rupees when deposited.

Key benefits of NRE accounts:

• Tax-free interest: You don’t pay any tax on NRE interest in India
• Fully repatriable: You can send the entire balance (principal + interest) back abroad anytime
• Easy fund management: Pay for expenses in India, support family, invest in property
• No ceiling on deposits: Transfer as much foreign currency as you want

Who can open an NRE account?

• Indian citizens living abroad (NRIs)
• Persons of Indian Origin (PIOs)
• Overseas Citizens of India (OCI holders)

If you earn in foreign currency and need to manage money in India, an NRE account is essential.

For a detailed comparison between NRE and NRO accounts, check our guide on what is an NRE account.

Top NRE Savings Accounts: Detailed Review

Let me walk you through the best options.

1. IDFC FIRST Bank NRE Account

Best for: NRIs who want the highest interest rates

IDFC FIRST Bank has become a favorite in our community, and for good reason. They offer some of the best interest rates in the market.

Interest Rate: Up to 7.25% p.a. (varies by balance slab)

Minimum Balance: ₹25,000 Average Monthly Balance

Key Features:

• Monthly interest credit (most banks credit quarterly)
• Free unlimited ATM withdrawals across India
• Zero forex markup on international transactions
• Video KYC for account opening from abroad
• Complimentary airport lounge access

What I like: The monthly interest credit is a real advantage. It means your interest compounds faster, giving you slightly better returns over time.

Their digital banking is excellent. Many NRIs in our community have opened accounts through video KYC without visiting India.

What to watch: IDFC FIRST is a newer bank compared to giants like SBI or HDFC. If branch access matters to you (say, you have elderly parents who prefer in-person banking), this might be a consideration.

Verdict: Best choice if maximizing interest is your priority and you’re comfortable with digital banking.

2. HDFC Bank NRE Account

Best for: NRIs who value reliability and branch network

HDFC Bank is India’s largest private sector bank. For many NRIs, it’s the default choice.

Interest Rate: 3.00% – 3.50% p.a. (based on balance)

Minimum Balance:

• Metro/Urban branches: ₹10,000 AMB
• Semi-urban branches: ₹5,000 AMB
• Rural branches: ₹2,500 AQB

Key Features:

• Extensive branch and ATM network (5,500+ branches)
• International debit card included
• Mandate holder facility (family in India can operate)
• Robust internet and mobile banking
• NRE Elite account with premium benefits

What I like: The branch network is unmatched. If your parents need to visit a branch for something, there’s likely an HDFC branch nearby.

Their NRI customer service is decent, and the mobile app works well. The mandate holder facility is useful – you can authorize a family member in India to operate the account on your behalf.

What to watch: Interest rates are on the lower side compared to smaller banks. If you’re parking large amounts, the interest difference adds up.

Verdict: Solid, reliable choice. Best if you value stability and branch access over maximizing returns.

For more details, see our HDFC Bank NRI banking review.

3. ICICI Bank NRE Account

Best for: NRIs who want excellent digital banking

ICICI Bank has invested heavily in its NRI services. Their digital experience is among the best.

Interest Rate: 2.50% – 3.50% p.a. (up to 3.50% for balances above ₹50 lakh)

Minimum Balance:

• ₹10,000 at account level
• ₹25,000 at customer ID level

Key Features:

• iMobile Pay app with UPI for NRIs
• Video KYC account opening
• Money2India for easy remittances
• Wide ATM network
• Good integration with ICICI’s investment products

What I like: ICICI’s digital banking is excellent. The iMobile app is user-friendly, and they’ve made good progress on UPI access for NRIs (though this still has some limitations).

Their Money2India service makes remittances easy if you’re sending money regularly.

What to watch: The minimum balance requirement at customer ID level (₹25,000) catches some people off guard. Make sure you understand the requirement to avoid charges.

Verdict: Great choice if digital banking is important and you want a full-service private bank.

Read more in our ICICI Bank NRE account review.

4. State Bank of India (SBI) NRE Account

Best for: NRIs who want the security of India’s largest bank

SBI is the granddaddy of Indian banking. It’s government-backed, trusted, and has the widest reach.

Interest Rate: 2.50% – 2.70% p.a. (2.70% for balances under ₹10 crore)

Minimum Balance:

• Personal Banking Branches: ₹1,00,000 (Metro/Urban), ₹50,000 (Semi-urban/Rural)
• General Branches: As per MAB criteria (typically lower)

Key Features:

• Largest branch network in India (22,000+ branches)
• Global presence with branches in many countries
• YONO app for digital banking
• Zero balance option available for opening
• Strong government backing

What I like: If you live in a country with SBI branches (US, UK, UAE, Singapore, etc.), you can walk into a local SBI branch and get help. That’s a huge convenience.

The trust factor is real. SBI isn’t going anywhere, and many NRIs find comfort in that.

What to watch: The minimum balance requirement is quite high for Personal Banking Branches. Interest rates are also lower than private banks.

Customer service can be slower compared to private banks. If you need quick resolution for issues, be prepared for some patience.

Verdict: Best if you value stability and need physical branch access in your country of residence.

Check our guide on SBI branches in USA if you’re US-based.

5. Axis Bank NRE Account

Best for: NRIs who want a good balance of features and service

Axis Bank is the third-largest private sector bank in India. They’ve built solid NRI services.

Interest Rate: 3.00% – 3.50% p.a.

Minimum Balance: ₹10,000 Average Monthly Balance

Key Features:

• Mandate holder facility for family
• International debit card
• Good internet and mobile banking
• Axis Direct for investments
• Priority banking options

What I like: Axis offers a good middle ground. Rates are competitive (though not the highest), service is reliable, and the digital experience is decent.

Their integration with Axis Direct makes it easy to invest in mutual funds and stocks if you want to grow your money beyond just savings.

What to watch: Nothing stands out as exceptional, but nothing is particularly weak either. It’s a solid all-rounder.

Verdict: Good choice if you want reliable service without any major compromises.

For NRE FD options, see our Axis Bank NRE account guide.

6. Kotak Mahindra Bank NRE Account

Best for: NRIs looking for competitive rates from a private bank

Kotak has been growing its NRI banking services steadily.

Interest Rate: 3.50% – 4.00% p.a.

Minimum Balance: ₹10,000 – ₹25,000 AMB (varies by account type)

Key Features:

• Competitive interest rates
• Good mobile banking app
• International debit card
• Kotak Securities integration
• Priority banking for high-value customers

What I like: Kotak offers slightly better rates than HDFC and ICICI while still being a well-established private bank. The mobile app has improved significantly.

What to watch: Branch network is smaller than HDFC or ICICI, which might matter if your family needs in-person service.

Verdict: Worth considering if you want private bank reliability with slightly better rates.

7. Yes Bank NRE Account

Best for: NRIs prioritizing high interest rates

Yes Bank offers some of the highest savings account interest rates in the market.

Interest Rate: 4.00% – 6.00% p.a. (varies by balance)

Minimum Balance: ₹10,000 Average Monthly Balance

Key Features:

• High interest rates on savings
• Digital banking services
• International debit card
• NRI priority services

What I like: The interest rates are attractive. If you’re parking significant funds in savings, the difference can be meaningful.

What to watch: Yes Bank went through a crisis in 2020 and was restructured by RBI. While it’s stable now, some NRIs remain cautious.

Verdict: Consider if you’re comfortable with the bank’s history and want higher returns.

8. HSBC India NRE Account

Best for: NRIs who already bank with HSBC globally

HSBC offers premium NRI services, but with premium requirements.

Interest Rate: 3.50% – 7.00% p.a. (varies significantly by balance and account type)

Minimum Balance: ₹1,50,000 Average Quarterly Balance (combined savings/FD)

Key Features:

• Global relationship benefits
• Premium banking services
• Excellent for NRIs with HSBC accounts abroad
• International transfers within HSBC network
• Dedicated relationship managers

What I like: If you already bank with HSBC in your country, the integration is seamless. Transfers between your global HSBC accounts are fast and often free.

What to watch: The minimum balance requirement is the highest among major banks. HSBC is really targeting high-net-worth NRIs.

Verdict: Best if you’re already in the HSBC ecosystem and have significant funds to maintain.

How to Choose the Right NRE Account

Here’s my framework for picking the right bank:

Prioritize Interest Rate If:

• You’re parking large amounts (₹10+ lakh) in savings
• You won’t need frequent branch visits
• You’re comfortable with digital banking

Best options: IDFC FIRST Bank, Yes Bank, Kotak Mahindra

Prioritize Branch Network If:

• Your family in India might need to visit branches
• You prefer in-person banking for important transactions
• You want widespread ATM access

Best options: SBI, HDFC Bank, ICICI Bank

Prioritize Digital Experience If:

• You manage everything online
• You want a great mobile app
• You need UPI access

Best options: ICICI Bank, HDFC Bank, IDFC FIRST Bank

Prioritize Global Presence If:

• You want to visit a branch in your country
• You need seamless international transfers
• You value relationship banking

Best options: SBI (for US, UK, UAE), HSBC (for global network)

NRE Account Features to Consider

Beyond interest rates, here’s what matters:

1. Minimum Balance Requirements

This varies significantly:

• HDFC/ICICI/Axis: ₹10,000 – ₹25,000
• SBI: ₹50,000 – ₹1,00,000 (Personal Banking)
• HSBC: ₹1,50,000

Non-maintenance fees can add up. Choose a bank where you can comfortably maintain the minimum.

2. Mandate Holder Facility

This lets you authorize a family member in India to operate your account. Extremely useful for:

• Making local payments
• Handling emergencies
• Managing recurring expenses

Most major banks offer this. Confirm before opening.

3. International Debit Card

An international debit card lets you:

• Withdraw cash at Indian ATMs when visiting
• Shop online on Indian websites
• Make payments abroad (some cards)

Most NRE accounts include this. Check withdrawal limits and forex charges.

4. Online and Mobile Banking

You’ll be managing your account from abroad 99% of the time. Make sure:

• The app works well internationally
• You can do transfers, pay bills, view statements
• Customer support is accessible

5. NRE Fixed Deposit Rates

Often, you’ll want to move excess savings into FDs for higher returns. Compare FD rates too:

Bank	1-Year NRE FD Rate
IDFC FIRST Bank	~7.00%
HDFC Bank	~6.00%
ICICI Bank	~6.00%
SBI	~6.50%
Axis Bank	~6.50%

Rates are approximate and change frequently.

For detailed FD comparisons, see our best NRE fixed deposit rates guide.

How to Open an NRE Account

The process has become much easier in recent years.

Option 1: Open Online (Video KYC)

Many banks now allow you to open an NRE account without visiting India.

Steps:

1. Visit the bank’s NRI banking website
2. Fill out the online application form
3. Upload documents (passport, visa, address proof)
4. Complete video KYC call
5. Fund your account via wire transfer

Banks offering video KYC: IDFC FIRST, ICICI, HDFC, Kotak, Axis

Option 2: Open During India Visit

If you’re visiting India, you can walk into a branch.

Documents needed:

• Valid passport with visa pages
• Proof of overseas address
• Passport-size photographs
• PAN card (or Form 60 if you don’t have PAN)
• Initial deposit (varies by bank)

Option 3: Open Through Bank’s Overseas Branch

If the bank has a branch in your country (SBI in USA, for example), you can start the process there.

For a step-by-step guide, read how to open an NRI account from USA.

NRE Account vs NRO Account: Quick Clarification

People often confuse these. Here’s the difference:

Feature	NRE Account	NRO Account
Purpose	Park foreign earnings	Manage Indian income
Source of funds	Foreign currency only	Any source (Indian or foreign)
Tax on interest	Tax-free in India	Taxable in India (30% TDS)
Repatriation	Fully repatriable	Limited (up to $1 million/year)
Currency	Held in INR	Held in INR

Rule of thumb:

• Foreign salary, savings from abroad → NRE account
• Rental income from India, pension, dividends → NRO account

You’ll likely need both. For more details, see our NRE vs NRO comparison.

Common Mistakes NRIs Make with NRE Accounts

From our community conversations, here’s what to avoid:

1. Not Maintaining Minimum Balance

Banks charge penalties if you fall below the minimum. Set up alerts or keep a buffer.

2. Depositing Indian Income in NRE

NRE accounts are only for foreign earnings. Depositing Indian income (like rent) can create compliance issues. Use NRO for that.

3. Not Updating KYC

Banks require periodic KYC updates. If you don’t update, your account can be frozen. Stay on top of this.

4. Ignoring the Account After Opening

Even if you don’t use it actively, occasional transactions keep the account healthy. Don’t let it become dormant.

5. Not Informing the Bank When Returning to India

When you return permanently, you need to convert your NRE account to a resident account (or RFC account). This is important for tax compliance.

FAQs

1. Can I have NRE accounts in multiple banks?

Yes, there’s no restriction. You can have NRE accounts with as many banks as you want. Many NRIs have accounts with 2-3 banks for different purposes.

2. Is NRE interest taxable in India?

No. Interest earned on NRE accounts is completely tax-free in India. However, it may be taxable in your country of residence – check your local tax laws.

3. Can I open an NRE account jointly?

Yes, but only with another NRI. You cannot have a joint NRE account with a resident Indian. (You can, however, add a resident as a mandate holder to operate the account.)

4. What happens to my NRE account when I return to India?

You must inform your bank and convert it to a resident account or RFC (Resident Foreign Currency) account. The tax-free status on interest ends once you become a resident.

For details, see our guide on how to convert NRE to resident account.

5. Can I use UPI with my NRE account?

Some banks now support UPI for NRIs, including ICICI and IDFC FIRST. However, it’s still not universal. Check with your specific bank.

6. How long does it take to open an NRE account?

With video KYC: 3-7 days typically In-person at branch: Same day to 2-3 days Through overseas branch: 1-2 weeks

My Recommendation

If I had to pick one for most NRIs, here’s how I’d think about it:

For most NRIs: HDFC Bank or ICICI Bank

• Reliable, established, good digital experience
• You’ll never have trouble finding a branch
• Decent (not highest) interest rates

For higher returns: IDFC FIRST Bank

• Best interest rates in the market
• Excellent digital banking
• Good for NRIs comfortable without branch visits

For US-based NRIs: SBI

• Branches in major US cities
• Can handle issues locally
• Trust of India’s largest bank

For premium banking: HSBC

• Best if you’re already in HSBC ecosystem
• Excellent service for high-value customers
• Global integration

The “best” bank really depends on what matters to you. Interest rates change, but service quality and convenience tend to be more stable.

Wrapping Up

Opening an NRE account is one of the first financial steps every NRI should take.

The good news is, you can’t go terribly wrong with any major bank. They all offer the core benefits – tax-free interest, full repatriation, and reasonable digital banking.

Pick based on what matters most to you: highest returns, best branch network, or smoothest digital experience.

And remember – once you have your NRE account, consider opening an NRO account too for your Indian income. Together, they cover all your banking needs.

If you have questions about NRE accounts or any other aspect of managing finances as an NRI, join our WhatsApp community at backtoindia.com/groups. Over 20,000 NRIs helping each other with real, practical advice.

Happy banking! 🏦

---

Interest rates and minimum balance requirements change frequently. This guide reflects information available as of late 2025. Always verify current rates directly with the bank before opening an account.