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By Vipul Jain
There are three types of NRI accounts including NRO, NRE, and FCNR. all these accounts are noteworthy for managing your finances in India if you are an NRI (non-resident Indian), OCI (Overseas Citizenship of India), or PIO (Persons of Indian Origin) card holder. These accounts help people to manage their investments and connect with their roots. Alongside there are several NRI account benefits.
Including Tax, currency conversion, insurance/loan facilities, and many more. So are you an NRI, PIO, and OCI card holder and in search of the benefits of an NRI bank account? If yes then this is the finest blog to learn the NRI benefits. Additionally, there are a few disadvantages of an NRI account such as low liquidity, currency devaluation, and many more. Here in this blog post, we will just shed light on the pros of an NRI bank account. So stay tuned with us and become familiar with it.
When we talk about the advantages of an NRI Bank account then it can only be opened by residents of India living out of the geographical territories of India for a minimum of 120 days. So before checking out the NRI benefits first look at the types of NRI bank accounts and become aware of them.
Each type of NRI bank account has several benefits. Let's embark on a journey of the benefits of NRI accounts.
There are plenty of NRI account benefits and Tax benefits are one of the best among all. NRE and FCNR Accounts are the types of NRI bank accounts that offer crucial tax benefits. If you are an NRI, OCI, or PIO and have an NRE or FCNR account. Then there is no need to pay the income tax on the interest earned from your deposits. If you have an NRO bank account then you have to pay interest from your deposits. It is one of the few disadvantages of an NRI Account.
Another great advantage of an NRI account is that you can easily convert your foreign currencies using this account. In other words, we can say that NRI account holders can easily manage their foreign incomes and savings without facing any currency conversion issues.
As we discussed above there are three types of NRI accounts but only NRE accounts, and FCNR bank accounts allow full repatriation. It means that NRI bank account holder can easily transfer their savings or interest to their foreign account without any specific terms and conditions. On the other hand, if we talk about an NRO bank account then it also allows transfer of money from one account to another, but holders need to follow additional terms and conditions.
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Some people want to open a joint bank account, are you one of them? If yes then the NRI bank account allows to opening of Joint accounts. NRIs can open a joint account with relatives on a former basis. PIO, NRi, and OCI can also open joint accounts with non-resident relatives by submitting a power of attorney for opening a joint NRI bank account.
It is a common benefit of every bank account that they keep your deposit safe. So whenever you open an NRI bank account it stores your funds safely.
If you are an NRI and operating an NRI bank account in India then various banks and insurance companies offer insurance and lending services. By choosing any of them you can apply for a loan and several banking facilities against your account.
Easy access to Indian investments is another important benefit of an NRI account. You are enable to use the funds deposited to invest in several financial assets in India if you are an NRI account holder. Alongside NRIs, PIOs, and OCIs can also use the capital to invest in investment in Mutual Funds, Fixed Deposits, and real estate.
In this digital era, everyone wants to operate their bank accounts with their phone. So if you choose to open an NRI bank account then convenience is one of the major benefits. NRI bank account holders can manage their finances from anywhere with the use of the internet and mobile banking. Additionally, NRI accounts offer a simple process for international transactions and minimize the complexities associated with cross-border financial activities.
No matter if you are an NRI or not better interest rates attract everyone. Various banks offer high interest rates on NRI bank accounts in comparison to accounts held by Indian citizens. Apart from this, some types of NRI accounts offer income tax exemption on the interest earned on deposits that works as an icing on the cake.
Many bank accounts require a minimum account balance but NRI accounts enable users to keep the account running with a low balance. The great thing is that there is no need to worry about maintenance charges, but always keep in mind that it varies from bank to bank.
FCNR is another type of NRI bank account and If you open an FCNR Account then you can deposit and hold capital in foreign currency. This account makes it easier for holders to earn in different currencies and save in Indian rupees.
NRE is a type of NRI bank account and holders will get income tax exemption by the interest generated on the deposits. NRE bank account also maximizes returns from the funds you have deposited.
Are you a Non-resident Indian, wanting to open an NRI bank account, and looking for the benefits of an NRI account? If yes then this is a great post for you all. By going through this blog you will learn some of the major advantages of an NRI account. Above we mentioned several benefits including FCNR deposit, Tax exemption for NRE interest income, Better interest rates, Minimal balance requirement, and many more. So if you are looking forward to opening an NRI bank account and facing difficulties then we recommend you hire Visament.
Limited investment options, Withdrawal restrictions, Domestic transactions, Currency risk, Low liquidity, Prone to risk, Not eligible for agricultural land, and Income earned within India is taxable. These are some of the disadvantages of an NRI account.
Both accounts are good depending on the usage. The NRE bank account allows the storage of foreign currency converted into Indian rupees. On the other hand, the NRO account is used to store both foreign income and money earned in India.
Yes, it would be better to open an NRI account.
Yes, it is mandatory to convert your savings account to a Non-Resident Ordinary if you are an NRI.
When we talk about OCI and NRI then of course OCI is better than NRI. This is because Overseas Citizens of India are enabled to live within Indian territory for an indefinite time. Alongside NRI cannot enjoy these benefits.
Yes, you can keep money in your NRE or NRO account, but it depends on your needs. NRE account is used to store foreign currency converted to Indian rupees and NRO is used to keep both foreign and Indian income.
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