SBI NRE Account

Despite its mammoth presence and reputation in India, SBI still lags behind public sector banks on many fronts. Here’s a look.

State Bank of India is the oldest and largest public sector bank in India. With 191 offices spread across 36 countries, it has the largest foreign market presence amongst all Indian banks. But, when it comes to NRE account facilities, SBI should probably be one of the last resorts.

Not only do the customer services leave much to be desired, they also lack many of the modern banking facilities that private sector banks offer NRI customers. The only point where SBI scores above others is in its brand value and credibility.

SBI NRE Account Features

  1. Rate of interest of 4% p.a. for savings deposit balance above ₹1 crore and 3.5% p.a. for deposits up to ₹1 crore.
  2. Rate of interest for NRE fixed deposits varies between 6.6% and 7 % p.a. based on deposit tenure.
  3. Presence in multiple countries, including the US, UK, Canada and Middle East.
  4. Low monthly average balance requirements of just ₹1,000 at rural branches and ₹3,000 in metro cities.
  5. Customers can get loans in Indian rupees against their NRE account deposits, with the maximum loan amount set at 90% of the face value and interest accrued.
  6. Customers are permitted to open joint NRE accounts with Indian resident relatives as a joint holder on “Former or Survivor” basis.
  7. Zero balance account permitted on opening.
  8. Premature withdrawal is allowed on fixed deposits.
  9. For branches with personal banking facility, deposit requirements are ₹1 lakh for metro and ₹50,000 for semi-urban areas.
  10. Internet banking and international debit card is provided.
  11. They also give an NRI family card, valid for 10 years from the date of issue. SMS alerts are sent for every online transaction made using the card.
  12. Transfer of funds is permitted from the NRE account to other bank accounts, including overseas accounts.


  1. Poor ATM facilities in the country and abroad. Often, the ATMs don’t accept cards of other banks.
  2. Low interest rates on savings account compared to other banks, such as RBL and YES Bank.
  3. Low interest rates on fixed deposits, compared to most other banks, including Axis Bank and HDFC.
  4. Poor internet banking GUI and a lack of rich online banking features.
  5. Lack of easy remittance facilities, such as those offered by Axis Bank and Kotak Mahindra.
  6. Average customer services.
  7. Customers have complained about the SBI app, which often doesn’t function properly.
  8. Customers who have visited SBI branches in India have faced incompetent staff, who seem to be unaware of many things.
  9. Lack of phone banking features.
  10. Customers have reported difficulties in being able to book FDs online.


  1. Trust that comes with the brand name
  2. Coverage in rural and semi-urban areas in India
  3. Zero balance account opening facilities
  4. Huge presence in several countries
  5. Smooth account opening


  1. Lags behind private banks on several facilities and customer services
  2. Low interest rates for savings and term deposit accounts
  3. Website often experiences downtime.
  4. Poor remittance facilities
  5. App doesn’t function as desired
  6. Staff appears to have the typical government babu attitude

Have you ever owned an SBI NRE account? What is your experience? Please share below.

2 Replies to “SBI NRE Account”

  1. Opening an account was smooth at an Overseas branch in Vizag, Andhra Pradesh.
    Been using NRI/NRE accounts for online transfers for about 5 months so far. Their website works fine.

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