Moved to the UK but still banking in India the old way? You're not alone. Thousands of Indians in the UK need NRE and NRO accounts, and opening them from abroad is usually slow, confusing and expensive.
Atwal Financial, the UK-India financial planning specialists based in London, now helps you open both, entirely online from the UK, in about 15 minutes.
Your Indian banking must change when you move
Under India's foreign exchange law (FEMA), you become a non-resident Indian (NRI) the day you leave India to live or work abroad for an uncertain period. From then on:
UK earnings you send to India go into an NRE (Non-Resident External) account.
Indian income, such as rent, dividends or a pension, goes into an NRO (Non-Resident Ordinary) account.
Your old resident savings account must be converted to an NRO account.
Few people are told this, and many UK-based NRIs are still using resident accounts they opened before they left.
Why the traditional route is so painful
Paperwork: notarised copies, couriers or a branch visit, often taking a week or more.
Low interest: NRE savings at big Indian banks typically pay just 2.5%–3%.
Costly transfers: a fee on every transfer from the UK, plus a marked-up exchange rate.
No guidance: nobody explains which account to use or how the interest is taxed in the UK.
NRE vs NRO: which do you need?
| NRE account | NRO account | |
|---|---|---|
| What goes in | Money earned outside India, such as your UK salary | Income earned in India: rent, dividends, pension, sale proceeds |
| Interest tax in India | Tax-free | Taxable, with tax deducted at source |
| Moving money back to the UK | Fully repatriable | Up to USD 1 million per financial year, after tax |
Most NRIs need both. With us, both open together with a single identity check.
The faster way: open your accounts with Atwal Financial
We help you open NRE and NRO accounts on your phone in about 15 minutes, with a scheduled bank regulated by the Reserve Bank of India. No branch visit, no notarised papers, no courier to India.
| Typical big Indian bank | With Atwal Financial | |
|---|---|---|
| Account opening | A week or more, notarised papers | About 15 minutes, fully online |
| NRE savings interest | 2.5%–3% | Up to 7%* |
| 2-year NRE fixed deposit | 6.6%–7.15% | 8% |
| Transfers from the UK | Fees + marked-up exchange rate | Free for 12 months, at the Google rate or better |
| Minimum balance | Often required | ₹0 |
| Advice | You work it out alone | We set up the right accounts and handle the UK tax |
Your accounts also come with a debit card for UPI, ATMs and online shopping when you're in India.
Pay less UK tax on your NRE interest
NRE interest is tax-free in India, but if you're a UK tax resident it is usually taxable in the UK. Most people don't realise they can reduce that bill.
Under the UK–India Double Taxation Convention, you can claim “tax sparing” relief: a credit of up to 15% against the UK tax on your NRE interest, even though no tax was paid in India. The relief lasts for 10 years from the date an NRE account is opened, so a new account opened with us starts that 10-year clock afresh, and we make sure you claim it on your UK tax return. If HMRC has already written to you about overseas income, see our guide to HMRC nudge letters for NRIs.
For a basic-rate taxpayer, that cuts the UK tax on £1,000 of NRE interest from £200 to just £50 (before any personal savings allowance).
Why open your NRI account through us
Opening an account is only half the job. As UK–India cross-border specialists, we make sure everything is set up correctly:
The right accounts: we check whether you need an NRE, an NRO or both, and convert any old resident account.
UK tax done properly: we report your NRE interest correctly and claim any tax sparing relief you're due.
One plan: we bring your Indian savings and deposits into one plan with your UK pensions and investments, ideally through a 360 UK-India Financial Review.
How it works
Speak to us. We review your Indian accounts and income.
Open your accounts online. We guide you through the 15-minute setup on your phone: upload your documents, join a short video call and sign on screen.
Plan your money. We help you choose deposits, set up transfers and get the UK tax right.
Documents you'll need: passport, UK eVisa or share code, proof of UK address from the last 3 months, and PAN card.
Frequently asked questions
Can I open an NRE account while living in the UK?
Yes. With Atwal Financial you can open NRE and NRO accounts entirely online from the UK, without visiting India or a bank branch.
Is NRE account interest tax-free?
In India, yes. If you're a UK tax resident you'll usually need to declare it in the UK, but tax sparing relief can cut the UK tax by up to 15% of the interest for the first 10 years of the account.
Do I need to close my Indian savings account when I move to the UK?
No, but you must convert it to an NRO account. It can't remain a resident account once you're an NRI.
Is my money safe?
Yes. Your accounts are held with Shivalik Small Finance Bank, a scheduled bank regulated by the Reserve Bank of India. Deposits are insured by DICGC up to ₹5 lakh per depositor.
Open your NRE and NRO accounts today
Call Atwal Financial on +44 (0)20 3769 7344 or email contact@atwalfinancial.com. We'll set up your accounts the right way from the start, or send us an enquiry online. Clients across London, Leicester, Manchester and Nottingham can also read our guide to repatriating money from India to the UK.
*7% applies to savings balances above ₹10 lakh; balances below earn 2.5%–3.5%. The 8% rate applies to 2-year fixed deposits; NRE deposits must be held for at least 12 months. Big-bank rates are indicative (SBI, HDFC, ICICI, Axis, 2026). All rates are as of November 2026 and may change. Accounts are provided by Shivalik Small Finance Bank (RBI-regulated); Atwal Financial does not take deposits. Deposits are insured by DICGC up to ₹5 lakh; UK FSCS protection does not apply. Tax sparing relief depends on your circumstances and is subject to HMRC rules. This article is general information, not tax advice.
