Which Indian bank account should I use?
NRE, NRO or FCNR? Tell us what you need the account for and get a clear answer.What do you need the account for?
Pick all that apply.The three accounts in short
NRE account
For money you earn abroad, kept in rupees.- Where can the money come from?
- Mostly from abroad: money you send from Sweden, or from another NRE or FCNR account. Money you earn in India, like rent or dividends, can only go in after tax and if your bank agrees. Most people keep that in an NRO account.
- What can I use it for?
- Spending in India, paying insurance or loans, and investing in India.
- Can I move the money out of India?
- Yes, all of it, any time. There is no limit per year.
- Is the interest taxed?
- Not in India. Sweden taxes it, so add it to your Swedish tax return.
- Can I share it with someone?
- Yes, with another NRI. You can also add a close family member who lives in India. While you are alive, they can only use it if you give them written permission (a power of attorney). After your death, the money goes to them.
NRO account
For money you earn in India. It can also take money from abroad that you will use in India.- Where can the money come from?
- From India and from abroad: rent, dividends, pensions, money from selling things in India, inheritances and gifts from family, money you send from Sweden, and money from your NRE account.
- What can I use it for?
- Bills, insurance, loans and family costs in India. You can also invest in mutual funds, shares, fixed deposits, property (but not farmland), NPS, or a PPF account you opened before you moved.
- Can I move the money out of India?
- Yes, up to USD 1 million a year, after tax. Your bank will ask for two forms: Form 145 from you, and Form 146 from a chartered accountant (CA). They used to be called Forms 15CA and 15CB.
- Is the interest taxed?
- Yes, in India: 10% if you give your bank two papers that show you live in Sweden, or about 31% without them. Sweden taxes it too, but takes off the tax you paid in India.
- Can I share it with someone?
- Yes, with other NRIs. You can also add someone who lives in India. They get the money after your death.
FCNR deposit
A fixed deposit for money you earn abroad, kept in a foreign currency.- Where can the money come from?
- Only from abroad, in a currency your bank offers, like US dollars, euros or pounds.
- What can I use it for?
- Only saving. You lock the money for 1 to 5 years. If you close it within a year, you get no interest.
- Can I move the money out of India?
- Yes, all of it. There is no limit per year.
- Is the interest taxed?
- Not in India. Sweden taxes it, so add it to your Swedish tax return.
- Can I share it with someone?
- Yes, with another NRI. You can also add a close family member who lives in India. While you are alive, they can only use it if you give them written permission (a power of attorney). After your death, the money goes to them.
This is not official, legal or tax advice. It is a simple introduction, so you understand the basics and know what to look up next. It covers tax year 2026-27 and was last checked in October 2026. Rules change and every situation is different, so check the official sources or ask a tax adviser before you file or move money: Income Tax Department, Income tax e-filing portal, Skatteverket.
Common questions
What is the difference between NRE and NRO accounts?
NRE is for money you earn abroad. You can move all of it out of India, and India does not tax the interest. NRO is for money you earn in India, like rent or dividends. India taxes its interest, and you can move up to USD 1 million a year out of it.
Is NRE interest tax-free if I live in Sweden?
It is tax-free only in India. Sweden taxes your income from every country, so add NRE and FCNR interest to your Swedish tax return.
Can I send money from Sweden to my NRO account?
Yes. An NRO account can take money from abroad as well as money you earn in India. It works well for paying insurance, loans, bills or family costs in India. Use an NRE account instead if you may want to move the money out of India later.
Can I invest in India from my NRO account?
Yes. You can buy mutual funds, fixed deposits, property (but not farmland) and NPS. To buy shares, you also need an NRI demat and trading account. You cannot open a new PPF account as an NRI, but you can keep paying into one you opened before you moved. The money stays in India, unless you move it out within the USD 1 million a year limit.
Where does money go when I sell property or inherit something in India?
Into your NRO account. You can move up to USD 1 million a year out of it, after tax, with a certificate from a chartered accountant (CA). If you bought the property with money from abroad, you may be able to move more. Ask your bank before you sell.
Can I keep my normal savings account after moving to Sweden?
No. Tell your bank you have moved abroad, and it will change your savings account into an NRO account. You can then open an NRE account for money you send from abroad.