You may have opened a bank account when you lived in India. However, once you become a non-resident of India (NRI), your domestic savings account is no longer valid.
However, you may still need to maintain funds in an Indian account for several reasons. The first thing to do, therefore, is to open an NRI savings account. But before you do, it’s a good idea to know the basics and the benefits of such a bank account.
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Types of NRI Accounts
Non-Resident Ordinary Account (NRO Account)
You can hold this account in Indian Rupees from the income earned in India, including dividends, rent, and more.
Non-Resident External Account (NRE Account)
It is maintained with funds that originate from the country of your residence. However, the funds are held in Indian Rupees.
Foreign Currency Non-Resident Account (FCNR)
It allows Persons of Indian Origin (POI) or NRIs to deposit money in the account in any RBI-approved foreign currency.
Benefits of Using an NRI Savings Account
Remote and hassle-free account opening
Can’t find enough time to visit the bank to open an NRI account? Worry not. The best bank allows you to create it online with minimum documentation from the safety of your home.
Access to investments in India
Thanks to the introduction of FAR (Fully Accessible Route) by the Reserve Bank of India, now even NRIs can enjoy access to the debt and stock markets in India.
The interest you earn as an NRI through your NRE bank account is completely exempt from taxes. That is, you can enjoy zero tax deductions on the interest earned.
An NRI account permits a smooth flow of funds overseas and also within India. So, it becomes highly convenient for you to access your funds anytime anywhere. Just remember that the funds in your NRO account are repatriable to a specific limit but those in your NRE account is completely repatriable.
Higher returns than in foreign countries
Did you know that interest rates of savings accounts across the world are quite high? That is, the banks charge a specific amount of money to handle your savings. You wouldn’t even get returns as interest. But with an NRI account, you can readily earn higher returns. You just need to maintain your balance.
The best bank for an NRI account offers you the following additional benefits:
- Transactions allowed from any geographic location
- Best exchange rates on inward remittances
- Automated crediting of interest to your NRO and NRE accounts every month for your convenience
- A dedicated relationship with the bank manager
- A revolutionary banking app designed for NRIs and access to net banking from across the world
- A visa debit card that comes full of benefits
- Transparent and minimal charges on most of the bank transactions and services
So, before moving overseas, choose the best bank for opening your NRI account that offers all the above benefits. Once you need not worry about finances abroad, you can freely focus on your new prioritieso