Differences between NRE and NRO account

	NRE	NRO
Repatri-ability	The deposits in an NRE account along with the interest earned is fully repatriable.	Repatriation is restricted from NRO accounts. You can repatriate just $1 million in a year from an NRO account with the help of a CA.
Taxation	The interest earned on deposits in an NRE account is tax-exempt.	The income from an NRO account is taxed. NRIs can reduce their tax liability by availing tax benefits under the Double Taxation Avoidance Agreement with certain countries.
Deposit rules	You can deposit any amount in a foreign currency in both the NRE and NRO accounts.	INR-denominated funds originating in India can only be deposited in the NRO account.
Fund Transfer	You can transfer funds from an NRE account to another NRE account as well as NRO account.	Funds from an NRO account cannot be transferred to an NRE account.
Joint account	You cannot open a joint NRE account with a resident Indian. The joint account holder for NRE accounts has to be an NRI.	An NRO account doesn’t have any restrictions. You can open an NRO account with a resident Indian as the joint account holder.
Currency fluctuation	The deposits in an NRE account are exposed to exchange rate fluctuations as well as conversion loss.	NRO account deposits are not exposed to daily currency fluctuations.

How do I choose which account to open for myself?

Both the NRE and NRO accounts serve different purposes. An NRE account allows easy repatriability and transferability The NRO account is used to maintain funds generated from Indian income sources so if you have an Indian income source, opt for an NRO account. But, if you just want to convert foreign income into Indian currency, the NRE account would be an ideal choice. NRE account deposits earn tax-free interest with no restrictions on repatriation.