Few Tips for NRI Banking
Banking has evolved substantially with time. From simple bank accounts to the sophisticated investment instruments, banks seem to offer a gamut of products that helped investors to maximize returns over a period of time.
Banking products are a safe haven to deposit your funds. They offer a convenience of cash deposit and withdrawal, thus making them easy for customers. However, how can NRI residents benefit from these products?
For NRI residents, banks offer online NRI banking services with exceptional benefits and advantages, thus allowing their savings to grow. Here are a few reasons why you should opt for NRI banking in India.
1> Variable Accounts for Use
- RBI has approved that banks can now offer three kinds of NRI accounts to cater to banking needs. They include accounts like-
- NRE – Non Resident External Account
- NRO – Non Resident Ordinary Account
- FCNR - Foreign Currency Non Resident Account
- These accounts are specifically designed to offer variable saving options and liquidity benefits.
2> Ease of Transferring Funds
Suppose you are looking forward to an account that simplifies fund transfer to India, then NRE accounts are the best, they will help in transferring foreign currency from any foreign country to India. As banks provide the best forex rates, these accounts are ideal for fund transfer when compared to conventional fund relegating services. Additionally, you are not required to pay heavy commissions, thus making them the best option in the market.
3> Tax Exemptions
NRE and FCNR accounts are designed to provide a tax exemption on holdings and earned interest. Other bank accounts are legally obligated to TDS deductions over interest earned.
4> Higher Interest Rates
Interest rates offered by NRI banking accounts are comparatively higher than the regular accounts. As a result, account holders are able to avail better returns over the savings done.
5> Provision to Use Additional Banking Services
NRE account offers complimentary banking services such as payment of bills, issue of cheques, online banking, cash withdrawal at ATMs, etc. They are similar to regular bank accounts, only with added benefits.