Holding NRE or NRO deposits?
Keep your rupees in India, or move them abroad?
- Every option in the currency you live in
- After tax
- How fast the rupee must fall for moving to win
- NRE deposit
- $33,239
- 0% tax on interest
- NRO deposit
- $30,193
- 31.2% tax on interest
- Move it now
- $34,218
- 0% tax on interest
Your money in US dollars, each way
What you'd have if you converted it that month, after tax and the conversion cost.
Your inputs
Keep your inputs as a file; it never leaves your device.
What this means
- A rupee falling 3% a year buys 14% less in US dollars after 5 years. Keeping rupees wins only while the extra interest makes up for it.
Why?
Over the last 20 years the rupee has fallen about 3–4% a year against the US dollar on average, with long flat spells and sharp drops.
- NRE interest is tax-free in India, and the money and its interest can go back abroad any time, with no limit.
Why?
Only while you're an NRI. Once you return and become resident, the interest is taxed like any other. Your home country may tax it too.
- NRO interest has 31.2% TDS, taken before it reaches you.
Why?
A lower rate may apply under your country's tax treaty with India if you give the bank a tax residency certificate and Form 10F.
- NRO lets up to US$1 million out each financial year, with Forms 15CA and 15CB from a CA.
Why?
The limit covers NRO balances and the sale of property in India together. NRE balances have no limit.
More details
The rupee fall that flips it
Keeping rupees in India wins while the rupee falls less than 2.4% a year.
How it's calculated
- NRE deposit: interest tax-free in India while you're an NRI, taxed where you live at the rate you set. Only money earned abroad can go in.
- NRO deposit: interest has 30% TDS plus cess. Where you live may tax it too, with India's tax counted against it, so the higher of the two applies. Surcharge on very large incomes is left out.
- Move it now: converted today and deposited where you live, taxed there.
The deposits are converted at the end, at a rate that has fallen by your yearly rupee fall; moving converts today. The conversion cost applies once either way. Deposit rates are held steady for the whole period.
Tax figures follow Budget 2025 rules, for FY 2025-26 onward.