NRE vs NRO Account in India

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Guys:

Could someone please point me to a site or explain what is the best difference b/w the NRE and NRO accounts in India and what are the pros/cons for them? I am leaving for India next week and want to earn better interest Obviously I would like to be able to repatriate money back, if needed. Additionally, any suggestions for the bank and/or ways to transfer money?

Your thoughts and experience shall be appreciated.

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dcmetro said: Guys:

Could someone please point me to a site or explain what is the best difference b/w the NRE and NRO accounts in India and what are the pros/cons for them? I am leaving for India next week and want to learn better interest Obviously I would like to be able to repatriate money back, if needed. Additionally, any suggestions for the bank and/or ways to transfer money?

Your thoughts and experience shall be appreciated.

or earn ??
Are you on short term project, other words, are you still earning Indian salary..? any other income in India..? through rent, dividends, if so you can manage local rupee funds using NRO account but the principal amount is not repatriable and can be used only for local payments. However, the interest earned is fully repatriable. Other current incomes such as pensions, dividends, rent, etc are also repatriable, subject to producing the appropriate certificate from a chartered accountant

NRE - Funds held in the account and interest earned on them are fully repatriable, also not taxable.
Find more at ICICI's web site..
I personally like ICICI a lot, been using them for last 7 years with ACH for money transfer with 0 fees, also repatriated money a couple of times with ease, my bank in the US charged for incomeing wire transfer but no fee from ICICI. ACH takes around 3-4 business days, you can schedule for months in advance if it is reoccuring transfer, the service is called money2india. Read up !!

I reside in US and am just visiting India. The objective is to be able to repatriate both principal and interest, if needed. Looks like NRE is the only way to go then. No wonder NRO has much better interest rates than NRE. Now the big question is whether I should open a NRE account or not. Not sure if the interest rate is any better than what Hsbc or Ingdirect offers.
Thanks for the info.

dcmetro said: I reside in US and am just visiting India. The objective is to be able to repatriate both principal and interest, if needed. Looks like NRE is the only way to go then. No wonder NRO has much better interest rates than NRE. Now the big question is whether I should open a NRE account or not. Not sure if the interest rate is any better than what Hsbc or Ingdirect offers.
Thanks for the info.

In India it does not matter which bank you go with the interest rates are in ball park, but make sure you get good online support, which ICICI has also had good experience with Centurion bank now changed to Punjab Centurion or something.
NRE is the only choice for you

dcmetro said: I reside in US and am just visiting India. The objective is to be able to repatriate both principal and interest, if needed. Looks like NRE is the only way to go then. No wonder NRO has much better interest rates than NRE. Now the big question is whether I should open a NRE account or not. Not sure if the interest rate is any better than what Hsbc or Ingdirect offers.
Thanks for the info.

NRO will not pay you back in dollars. NRE will. The interest rate for a 1 yr CD in an NRO account is above 8%. But you should factor in the currency conversion. Dollar has been on a steady decline against the Re for the past 7-8 months. If the trend continues, until you pull your money out (into dollars), then interest aside, you will be getting more than you put in. So if the dollar gains 2% against the Re over the next 12 months, you effectively will be earning around 6% (minus the conversion fee if converting back into dollars)!!

I prefer the real estate market in India . Everyone I know that had bought some property, has seen their property value increase by atleast 50% in the last couple of years. Now that's a return.

snafu123 said: I prefer the real estate market in India . Everyone I know that had bought some property, has seen their property value increase by atleast 50% in the last couple of years. Now that's a return.

Yea, but its not easy. You need to have reliable person in India to take care of it all the time. My relative bought flat in India. 1 year after when he went there and found that some unknown family was living in that flat. Builder sold same flat to somebody else and refuses that my relative bought that flat in first place. Case is in court. Result is anybody's guess.

also check remit2india service from timesofindia. They allow u to invest in Mutual funds if u have NRE account.

http://www.timesofmoney.com/mf/jsp/mf_gettingstarted.jsp?uiId=R2IMF

fokatkamaal said: dcmetro said: Guys:

Could someone please point me to a site or explain what is the best difference b/w the NRE and NRO accounts in India and what are the pros/cons for them? I am leaving for India next week and want to learn better interest Obviously I would like to be able to repatriate money back, if needed. Additionally, any suggestions for the bank and/or ways to transfer money?

Your thoughts and experience shall be appreciated.

or earn ??
Are you on short term project, other words, are you still earning Indian salary..? any other income in India..? through rent, dividends, if so you can manage local rupee funds using NRO account but the principal amount is not repatriable and can be used only for local payments. However, the interest earned is fully repatriable. Other current incomes such as pensions, dividends, rent, etc are also repatriable, subject to producing the appropriate certificate from a chartered accountant

NRE - Funds held in the account and interest earned on them are fully repatriable, also not taxable.
Find more at ICICI's web site..
I personally like ICICI a lot, been using them for last 7 years with ACH for money transfer with 0 fees, also repatriated money a couple of times with ease, my bank in the US charged for incomeing wire transfer but no fee from ICICI. ACH takes around 3-4 business days, you can schedule for months in advance if it is reoccuring transfer, the service is called money2india. Read up !!

How about State Bank of India? It has local US branches.. How is hte service with them? ANyone has experience with this bank in regards to NRE account ? Do they allow to put money in Mutual Funds ?

I've heard ICICI Bank has the best service. I wasn't too impressed with the State Bank of India when I was there in March. I have yet to apply for NRI status but I hope to soon.



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