NRO savings account interest rates: SBI vs HDFC Bank vs ICICI Bank vs Yes Bank

Many non-resident Indians (NRIs) handle their savings or income received in India, such as dividends, pensions, rent, etc., using Non-Resident Ordinary (NRO) Accounts. You can receive money with this account in both Indian and international currencies. This account helps an NRI to manage their income earned in India. Additionally, moving money between your current NRE and NRO accounts is very simple. Although Tax Deducted at Source (TDS) is applied to the interest you earn in this account.

However, as NRO Accounts are stored in Indian currency and cannot be freely repatriated into any foreign currency, only Indian currency can be withdrawn.

Here is a look at the latest NRO saving accounts interest rates of leading banks in India, as per their websites.

SBI NRO saving interest rate

SBI offers interest rate of 2.70% on balances less than Rs 10 crore and 3% on balances Rs 10 crore and above.

HDFC NRO savings account interest rate

HDFC Bank offers interest rate of 3% on balances less than Rs 50 lakh and 3.50% on balances of above Rs 50 lakh.

ICICI Bank NRO savings account interest rate

ICICI Bank offers an interest rate at 3.5% per annum for end of day balances equal to or above Rs 50 lakhs and 3% per annum for end of day balances below Rs 50 lakhs.

PNB NRO savings account interest rate

PNB offers 2.70% interest rate on balances below Rs 10 lakh, for balances between Rs 10 lakh to Rs 100 crore is 2.75%.
Yes Bank
Yes Bank offers 4% to 6.25% interest rate for balances between up to Rs 25 crore.

DCB Bank NRO savings account interest rate
DCB Bank offers savings account interest rate between 2% to 8.00% on balances up to Rs 200 crore. The highest interest rate of 8% is offered on balances from Rs 10 crore to less than Rs 50 Crore in the account.

Interest earned
According to the HDFC Bank, “The interest you earn on an NRO Account is taxable at 30%, deductible at source. It is noteworthy that the income you earn in India, deposited in an NRO Account can include rent, dividend, pension, etc. You can also transfer the principal amount within specified limits. As per rules, you can transfer up to USD 1 million in one financial year post payment of applicable taxes.”