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At a Glance
For Non-Resident Indians (NRIs) with income sources in India (rent, pension, dividend income, etc.), one of the better banking options available is that of a Non-Resident Ordinary (NRO) Savings Account. You need an NRO Savings Account to manage your earnings in India if you are settled overseas. A key point to note is that NRO Accounts are subject to tax deducted at source (TDS).
Here is how we calculate interest on NRO Savings Account
At DBS Treasures, we calculate the NRI account interest rates on daily available balance. This interest is paid out quarterly every year, but this is subject to change. However, unlike an NRE Savings Account, the interest income from an NRO Savings Account is taxable in India.
NRE / NRO Savings Account Interest Rates
Here are our new rates w.e.f. 3rd January 2022.
| Nature | Rate of Interest (per annum) |
|---|---|
| NRO/NRE | Balance up to Rs. 1 lakh will get 3.25% interest rates |
| Any balances over and above Rs. 1 lakh and up to Rs. 5 lakhs will get 3.5% on the incremental amount* | |
| Any balances over and above Rs. 5 lakhs will get 3% on the incremental amount* |
Note:
- Interest will be paid at quarterly rests or on any other rests as the Bank may decide from time to time.
- Interest will be calculated on daily available balance or as required by the regulator or as a result of banks own decision.
- Rate of interest on Savings is subject to change from time to time at the discretion of the Bank and/or in accordance with directives from RBI.
- For senior citizens, above rates would apply.
Frequently Asked Questions
Yes, the interest income on an NRO Savings Account is subject to a TDS deduction.
An NRO account allows you to repatriate your interest income and the principal amount subject to certain conditions. The Government of India has capped this amount at USD 1 million for a financial year after paying taxes.
Yes, an NRO Savings Account can be held jointly with NRIs and resident Indians. The account also comes with a nomination facility.
