If you are an NRI or someone who’s planning to move abroad permanently, chances are that you may be slightly confused about your banking choices. While you may feel the need to keep your current savings account active for a wide variety of reasons like, paying off a loan, investments and access to credit, under FEMA regulation, the government of India has made it illegal for NRI’s to do the same.
However, you do have access to a unique banking system called NRE (Non-Resident External). Many private and public banks in India provide this type of facility, which allows NRI’s to keep their money in Indian currency, choose from various fixed deposit options and even earn amazing interest rates.
Unfortunately, many NRIs are unaware of such benefits. Therefore, they lose out on the best opportunity to earn some extra money. Avoid making that mistake and open an NRI savings account soon to avail advantages like:
- Tax Benefits: This is one of the prime reasons why people opt to open an NRE account. It’s because interest earned on such types of savings accounts are tax-free. This makes it a super secure and a high yielding investment option.
- High Interest Rate: NRE accounts offer high interest rates. Although, the percentage they offer, may differ from one bank to another. So before you open your account, make sure you compare the interest rates of different banks to enjoy the best benefits.
- NRI Advantage: Today, many banks provide global offerings. This makes it convenient to open an NRI account in a bank that offers exclusive services in both India and abroad.
- Low Balance Required: Since there is an increased amount of competition amongst public and private banks, the minimum balance has dropped down significantly. However, this too may vary from one bank to another, so, like we mentioned before, do your homework before you open an account.
- Accessibility Advantage: An NRI savings account also gives you the advantage of shopping from anywhere in the world, booking airline tickets online and even withdrawing cash abroad. It couldn’t get better than that, right?
So, these are some of the NRI account benefits you can receive by choosing to open an NRE account in India. Besides being convenient, secure and non-taxable, these accounts allow you to yield good interest rates too. All you have to do is fill up an application form and provide documents that include your new account opening form, address proof of the overseas residence, a copy of your passport, copies of your visa and work permit and some passport size photographs.
Once all these documents are submitted, they will be verified by the bank, following which you will be able manage the account from outside the country, legally.