I am returning to India in next 3 months from USA. I have some savings money in my USA bank account. I have learnt about NRE and NRO account. I have been in USA from past 3 years and unfortunately I have not yet created any NRE or NRO account. I am now planning to transfer all my saving to Indian bank account. I am looking for the best option available for me.
Option 1: Open NRE account : Since I am relocating permanently this might not be good option for me as converting NRE account to regular account needs first conversion of NRE account to Residence Foreign Currency account which can then be converted to regular savings account. Hence I believe there would be two conversions required in short period of 3 months.
Option 2: Create NRO account: There would be taxes on the interest earned of the funds. But I am not sure of this, since I will have been moved to India permanently would I need to still pay taxes on the interest earned while I am in India?
Option 3: I can transfer my funds directly to my account in India but I believe I would have to pay tax on the the funds that I transfer and that would be double taxation. Which I think would be the worst option for me. Please correct me if I am wrong.
Option 4: I can transfer the funds to my direct relatives account. I still believe there would be tax to be paid on the interest earned of the amount.
I think creating only NRO account would be the best option for me as there would be not double taxation and only single conversion of the currency (using any services like money2India or wire transfer) and NRO account can be easily converted to regular savings account. But I am not sure if the interest earned after 3 months (after I have moved to India) would be eligible for tax?
The more I search online more confusing it sounds to me. Can any one please help me what would be the Ideal/best option for me? Please feel free to correct me if any of my assumptions above hold false.