Planning to move to a foreign country for work? You should consider opening an NRI bank account to transfer and manage your earnings. Check out this post to know some of the top benefits of opening an NRI account.
A large number of Indians move to foreign countries every year in search of better professional opportunities. But as an NRI, they are not allowed to open or operate a regular bank account in India as only resident Indians are eligible for such accounts.
What they need is an NRI account that is exclusively designed as per the requirements of Indians working abroad. Top banks now offer many different types of NRI accounts to meet the banking, saving, and investing needs of NRIs.
If you have recently moved abroad or planning to move soon, then here are some of the top benefits of NRI account you should know-
- Multiple Account Types
NRI accounts are of many different types. While NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts are already very popular, NRIs can also consider FCNR (Foreign Currency Non-Resident) and RFC (Resident Foreign Currency) accounts.
Moreover, these accounts are further divided into savings, current, and term deposit accounts. Before opening an account, NRIs should try to know more about all of these different accounts as their purpose and features vary significantly.
- Highly Competitive Interest Rates
If you are a risk-averse investor, then an NRI bank account is an excellent way for you to earn risk-free fixed returns. All the different types of savings and term deposit accounts available for NRIs earn fixed interest that is free from any market risk.
With some of the most reputed banks, the interest rate of NRI accounts is as high as that of their regular accounts for resident Indians. NRI looking to grow their savings in a risk-free manner should consider opening an NRI bank account.
- Easy Repatriation
Account holders can also repatriate the balance of their NRI account to their current country of residence. But note that the repatriation rules vary for different accounts. For instance, with an NRE account, an account holder is free to repatriate the principal as well as the interest amount fully.
But with an NRO account, an account holder can fully repatriate the interest, but the principal amount is restricted to USD 1 million in a financial year. But India has DTAA (Double Taxation Avoidance Agreement) with several countries to help NRIs reduce their tax liabilities.
- Mandate Account Holder
With most of the NRI accounts, account holders are also allowed to select a resident Indian as their account mandate. NRIs can choose any of their family member as the mandate holder so that their NRI account can be easily managed on their behalf.
The mandate holder is also provided a debit card and cheque book for easy withdrawals from the NRI account.
- Hassle-Free Money Transfers
One of the top NRI account benefits is their hassle-free money transfer services. Some of the top Indian banks now offer international remittance services at highly competitive exchange rates and low transfer fees. The NRI account holders are given preferential rates.
This will allow you to instantly transfer funds to anyone in India with the utmost convenience and get the maximum value for your hard-earned money.
Opening an NRI Bank Account
Now that you know some of the top benefits of opening an NRI account, the next thing you’d like to know is how to apply for an NRI account. There are now banks that allow NRIs to apply for accounts online. Fill the application form and upload the required documents to begin the application process.
For enhanced convenience, some of the banks also offer facilities like free document pick-up and more. Prefer such banks for your account to experience the best of NRI banking.