A NRE account is a banking option for India enabling them to deposit foreign currency earned in their country of residence o India. The interest accumulate in NRE account is exempt from Taxes and both the principal and interest from this account can be freely repretiated. joint holding is permishable for this account allowing two NRI account holders. NRE account provide NRI with the convenience of depositing foreign currency and later withdrawing in Indian rupees.
An account that helps you park your foreign earnings in India, in Indian denomination.
Deposits in NRE accounts are Tax-Free, i.e. the principal amount, and the interest earned thereon, is exempt from tax.
Money from NRE accounts is freely repatriable i.e. both the Principal amount and interest earned are freely and completely transferable.
You should opt for NRE Accounts if you want to hold or maintain your overseas earnings in Indian currency. NRE Accounts are also suitable if you wish to keep your savings liquid.
You can open an NRE account with another NRI and close relative Resident Indian.
