The Non-Resident Indians (NRI) can enjoy certain benefits on having the NRI bank account. The leading banks deliver different types of NRI accounts in the country. These banks offer outstanding interest rates on both savings accounts and fixed deposits. Apart from that, there is a broad spectrum of benefits that you need to know.
But before you apply for NRI banking account, it is essential to know about the variants of the NRI accounts. The top banks of India mainly provide the NRIs with the opportunity to hold the following types of accounts:
Non-Resident Ordinary Savings Account (NRO)
Non-Resident External Savings Account (NRE)
FCNR Fixed deposit account
Mainly, the accounts mentioned above are majorly used by Indian citizens residing in foreign countries.
Now, the outstanding benefits of holding the NRI accounts are mentioned below:
Easy to Open
Reputed banks operating in India deliver a comfortable procedure to the NRIs to open the NRI accounts. There are two ways to open the NRI account where you have an option to visit the bank or complete the whole process online. Make sure that all your documents are genuine.
In the case of online NRI account initiation, all your documents must be attested by the Indian Embassy or a reputed banker or notary of the country you are residing. If you take the offline measure, reach out to your nearest bank branch with the essential documents. The banking personnel are always there to ensure the NRI account initiation faster and hassle-free. Consider knowing the parameters of both NRE and NRO accounts and choose accordingly.
Huge Tax Relaxations
This is the primary benefit of holding an NRI account that one can imagine. On being an NRI, a sound knowledge of the Indian tax system can lead you to the right NRI account. In case of holding an NRE account, you can repatriate both the capital money well as the interest on it. In the country, the NRE account is totally tax-free. Thus, the account holder always enjoys a prominent benefit.
In the case of the NRO account, you can enjoy repatriation of the interests after a certain about of TDS is deducted. The percentage of TDS deducted from your NRO account is according to the regulation of the Income Tax Act. There is a chance for transferring your capital from the NRO to NRE account after the tax deductions are made.
Minimum Existing Balance
In the case of both NRE and NRO accounts, the NRIs need to maintain a nominal balance. The current minimum balance is set at Rs.10,000. So, you can be stress-free while managing NRE or NRO accounts. These accounts also give you a chance to maintain fixed deposits. Thus, you can enjoy absolute security on a decent capital.
Comfortable banking facilities
These days, most banks make sure to provide their customers with comfortable banking facilities. On having any of the above-mentioned kind of NRI account with a particular bank, the holder can execute the banking facilities in any branch nationwide.
Nowadays, internet banking has gained much importance, and NRIs have an option to do all the banking activities on the internet. The leading banks are always open in terms of informing and helping the NRI customers via messages and emails. Technological advancements have now opened the door for every bank to maintain a mobile application. As a result, the NRIs can access their account 24/7 from any corner of the world. All they need is a data connection.
A common phenomenon of depositing foreign currencies is seen among the NRIs. If you want to deposit any foreign currencies, the FCNR account can be the best for you. FCNR stands for Foreign Country Non-Repatriable account where you can only have fixed deposits. However, it is beneficial as you can earn strong interests. The foreign currency interests are entirely tax-free in the country. Thus, there are no chances of any deductions on the monthly interests.
In India, several banks provide their NRI customers to have an FD on leading foreign countries like USD, Yen, Pound, Canadian Dollar and Euro.
Complementary Debit Cards
Nearly, every bank gives you a complimentary debit card with the NRI accounts. These cards are prominently beneficial as they allow a comparatively high withdrawal limit from the standard cards.
Outstanding Perks on the Card
As an NRI, you can enjoy several benefits while holding the NRI debit card of the premium standard. Expect to get decent discounts on petroleum purchase all over India. There are discounts on luxury dining too that you can avail while holding an NRI debit card.
So, these are the 6 top benefits that you can get while opening an NRI account in any of the leading banks in India. You can always consider comparing among several banks and finally choose the best. Managing your income and savings from a foreign country can turn lucid on having an NRI account.
Published by Samantha Brown