Interest Rates and Banking Benefits of an NRO Account

For Non-Resident Indians (NRIs) who continue to earn income in India, maintaining a secure and efficient banking channel is essential. An NRO Account (Non-Resident Ordinary Account) serves this purpose by allowing NRIs to manage income generated in India such as rent, dividends, pensions, or any other earnings. This account not only facilitates easy management of Indian income but also offers attractive NRO Account interest rates and several banking benefits tailored to non-resident needs.
The NRO Account interest rates vary depending on the bank and account type—savings or fixed deposit. Typically, NRO Account interest rates are similar to those offered to resident savings accounts, ranging between 3% and 7%, depending on the bank’s policies and deposit tenure. Fixed deposits under an NRO Account generally provide higher returns compared to standard savings accounts, making them an appealing option for NRIs looking to grow their domestic earnings securely. Importantly, the interest earned on an NRO Account is subject to tax in India, with a standard TDS (Tax Deducted at Source) rate of 30%, though this may be reduced under applicable Double Taxation Avoidance Agreements (DTAA).
Beyond attractive interest returns, the NRO Account provides several key banking benefits. One of the main advantages is the ability to deposit both Indian and foreign currency income, though withdrawals are allowed only in Indian rupees. This flexibility allows NRIs to manage multiple income sources seamlessly. Additionally, the account enables easy fund transfers within India, bill payments, and investment in Indian financial instruments such as mutual funds and fixed deposits.

Another major benefit of an NRO Account is the convenience of repatriation. NRIs can repatriate up to USD 1 million per financial year from their NRO Account after paying applicable taxes and providing necessary documentation. Joint account holding with an Indian resident or another NRI is also permitted, offering additional flexibility for families managing financial assets across borders.
Furthermore, most modern banks provide digital access to NRO Accounts, allowing NRIs to manage transactions, view balances, and perform online transfers from anywhere in the world. This convenience, combined with strong security and attractive NRO Account interest rates, makes it an essential tool for financial management.
For NRIs seeking a reliable and rewarding banking experience, SBM Bank offers competitive NRO Account interest rates, hassle-free fund management, and premium customer service. Choose SBM Bank today to enjoy seamless banking, superior returns, and the confidence of managing your Indian earnings effortlessly through a trusted NRO Account.