How to select a Bank?

The most financial decision is selecting a bank to manage your funds. Different banks offer various services, fees, and Savings Account interest rates.

Types of Banks

The banks ideal for you is the essential factor to consider. Every bank has its set of pros and cons.

Traditional banks

When people think of a bank, they think of the traditional ones, who primarily provide facilities to their customers through a network of physical locations and supply ATMs to their and other banks' customers. Most are considering Online Banking services for bill payments and deposits. Even though traditional banks have been around the longest, fewer reasons to pick them over competitors. Both charge lower fees than typical banks.

However, choose to conduct your financial transactions personally. If you have a query or a problem, speak to someone about it in your local branch. This indicates that a traditional bank is the best option for you. However, it is best to check the alternative options accessible to you.

Online banks

These were uncommon 20 years ago, but their popularity has grown with time, and they now compete directly with traditional ones. Because internet banks have fewer or no physical branches, they have lower overhead costs than standard ones, which means their fees are often lower. These banks offer to have a banking app that lets you make banking transactions.

The difference between online and traditional banks has increasingly blurred in recent years, as the latter's digital services and technologies have evolved. This implies that you can get the benefits of a traditional branch while also taking advantage of the convenience of Internet Banking.

Fees and interest rates

The fees and rates charged are other aspects to examine when deciding where to bank. Most hold two types of accounts: a Checking and a Saving Account. The features vary depending on the type of account you open, and it is common to have various accounts with multiple banks.

Interest rates

Look for a unique set of features in your Savings Account. As you do not use the Saving Bank Account often, you can handle them online. Most of them do not charge excessive fees if you do not make frequent withdrawals. Instead, the fundamental distinction between these accounts is the interests they pay. The best rates are found through credit unions or internet banks. Shop around for the best interest rates.

Benefits Of Using Mobile Banking Apps To Send Money

People are becoming increasingly reliant on mobile devices for different services. When Apple initially released the iPhone in 2007, no one had heard of the app. Over these years, the App Store has grown to nearly four million applications. Use them for anything from getting a taxi to buying groceries to learning a new language.

A smartphone without apps is difficult to imagine. They also provide hours of entertainment, with games accounting for about a quarter of all downloads. One of the ways that mobile devices encourage financial services is by making it easier for them to transfer and receive money. Since the entire procedure is safe and quick, banking apps typically make it smooth for ex-pats to money transfer from the US to India

Save time

The primary benefits of these apps are that it enables customers to send money whenever they need it, no matter where they are. Thanks to them, you can execute a transaction on your device from the comfort of your home. Once you download them, you need a decent connection to send money from the USA to India.

Suppose their native country offers the desired payment infrastructure. In that case, the recipient stores the funds in a mobile wallet, a digital replica that is easily accessible anywhere and sends them right away from their smartphone. If they do not, they show up at a bank to withdraw money.

The money transfer to India from the US via the app frees up time for the important things like spending time with closed ones or engaging in a hobby.

Simple and secure

Using a mobile money transfer app to send money to India. The apps are meant to be user-friendly, so use them even if you are not tech-savvy. Complete all your transactions within the app than on a third-party website. They are safe as well. Besides the PIN, think about other ways to secure your mobile device for peace of mind. If your phone gets stolen, they have difficulty getting access to it.

Keep a record

The banking apps assist in calculating and keeping track of funds you transfer. You see a history of your transactions within the app. This unique feature helps in managing your and the receiver’s funds. Track the amount you transfer money to India and increase or reduce it based on how much you can afford or how urgently you need the funds.

What are the features of an NRE Account?

 Once you become a Non-Residential Indian, managing funds in India becomes difficult. Sending or receiving money becomes a hectic task. You need to complete numerous transactional formalities. This could be time-consuming. To avoid this hassle, consider NRI Accounts. One such service is the Non-Resident External Account. It is a rupee-denominated account. This means your funds are maintained in Indian rupees.

An NRE Account specifically caters to NRI requirements. It satisfies your unique banking needs. But before you seek one, go through its features. Here are some:

Fund repatriation

NRE Accounts facilitate fund repatriation. They let you move funds freely. Through them, you get to transfer money to any other country. This ensures a smooth flow of funds.

Rupee denominated

An NRE Bank Account is rupee denominated. All your funds get sustained in INR. For example, you can deposit money in US Dollars and withdraw it in INR. This account is a Savings Account, Current Account, or Term Deposit Account. You can choose what type you want your funds in.

Remitted funds

NRE Accounts collect funds remitted from another country. They also obtain funds from another NRE or Foreign Currency Non-Resident Account. The funds may be in foreign currency drafts, cheques, remittances, etc. The accounts, however, are maintained in India. Once you ensure this, you receive funds freely.

Transactions

Sometimes, you may want to send funds to a Non-Resident Ordinary Account. You could also be expecting payment from the same. To help with this, NRE Accounts facilitate your transactions. They enable you to send and receive funds from NRO Accounts.

Tax exemption

The interest you earn on deposits is usually taxable. It eventually decreases your interest earnings. However, under NRE Accounts, interest earnings are exempted from taxes. As a result, your taxable income gets reduced.

Terms

To open an NRE Account, you need to obey some terms and conditions. For starters, you must be an NRI. Also, the Power of Attorney cannot open NRE Accounts on your behalf. This is impossible according to the account terms. However, they can make rupee transactions locally on the NRI’s behalf.

Account conversion

Say you are an NRI holding an NRE Savings Account. You have returned to India. You have also become an Indian resident. In this case, your account gets converted into a regular resident account.

Debits

NRE Accounts facilitate debit transactions. These include local disbursements, payments made outside India, etc. They allow transfers to other NRE/FCNR Accounts as well.

What are the different Debit Cards?

 A Debit Card is a plastic money that allows users to get cash from an ATM or pay for goods and services online or offline. However, did you realise that the Debit Card you use for purchases or ATM withdrawals is different from the Debit Card used by someone else?

A user chooses from a variety of Debit Cards depending on their intended purpose and transaction value. Now, before you apply for a Debit Card, understand the differences between the types of Debit Cards so that you can choose the one that best suits your needs:

Visa Debit cards

These are accepted worldwide, giving users financial flexibility for transactions inside and outside the country. Visa Debit Cards get issued by banks partnered with the International Visa Payment System Network. Offline, internationally, online, and over the phone, these cards provide quick, secure, and convenient access to a user's money. You apply for Debit Card online for this type.

RuPay Debit Cards

The National Payments Corporation of India introduced RuPay, an Indian transnational payment service. These are issued as part of the domestic Debit Card scheme and used for domestic purposes. They get used to withdrawing cash from ATMs or making online payments within the domestic boundary. Besides that, compared to Visa and MasterCard, these cards have a lower processing cost and time. Banking apps also let you apply for them.

MasterCard Debit

These are accessible anywhere in the world. They come in handy at ATMs and for online transactions. They allow you to keep a complete record of all transactions done each month. You can go for an online Debit Card to help you with online transactions.

Contactless Debit Cards

Such cards are famous because you need not input your PIN. Payments made with contactless Debit Cards are made simply by waving or tapping at the POS terminal. These cards work on the Radio Frequency Identification or Near Field Communication concept, equipped with contactless payment technology.

Maestro Debit Cards

They are comparable to MasterCard Debit Cards that are accepted worldwide. Users who have a Maestro Debit Card conduct online transactions inside and outside the country. Besides, they can use it as Debit Card worldwide.

Since there are so many Debit Cards, it is good to perform a thorough analysis of each before applying. The comparison parameters should be benefits, incentive programmes, security, processing fees, and other extra features.

Why is Personal Loan the best choice during financial emergencies?

 Emergencies are inevitable and require immediate funds. Arranging funds for the same gets tricky. Sure, you can dip into your savings. However, you run the risk of running out of the surplus funds that took time to accumulate. Moreover, savings fall short to cover hefty expenses like medical treatments, home renovation, big-budget purchases, etc. Hence, it is better to opt for financial assistance through Personal Loans.

They are a convenient option with a simple application procedure. Besides, you are not required to submit collateral. These aspects reduce stress during emergencies. Also, if you meet the eligibility parameters, the Loan gets disbursed instantly. You have the option to apply for a Personal Loan online or offline. The former is much more convenient and faster. Here are some other qualities that make it the perfect choice for emergencies:

Easy repayment terms

Besides easy access to funds, lenders also provide flexible repayment via equated monthly instalments. This allows you to think about the Loan burden after the emergency has passed. The flexibility depends on the tenure you choose. The longer the duration, the lower the EMI and vice versa. Hence, most people like to stretch the Loan term. However, you should check how this impacts the cost with an EMI calculator for an informed decision.

Freedom of end-use

The best part about availing of the Loan is its multipurpose nature. This means you get used to it for various purposes like a wedding, vacation, big-ticket purchases, medical treatments, etc. You need not specify the same to the lender. Hence, it acts as a sound solution to any financial requirement. An emergency means different things to different people. Also, you need not prove it to avail of the Loan. You only need to pass the Personal Loan eligibility criteria.

Competitive rates:  

We mostly end up taking rash decisions during emergencies. The lack of time makes us do that. But thankfully, you need not incur huge losses on Personal Loan interest rates. This is because lenders offer reasonable rates based on your application. The severe competition in the finance industry makes them give you lower rates. The only criteria are to meet their eligibility parameters. Also, comparing rates is easier with tools like EMI and eligibility calculators.

Quick approval

During emergencies, there is hardly any time to endure tedious procedures. Speed is a significant factor to consider, and that is what lenders do with Personal credit products. They prioritise your urgency and let you apply from their websites or banking apps. Since these are digital mediums, the verification time gets reduced. Also, the documentation process gets completed quickly in minimal steps.

Advantages of using Digital Banking in India

 Digitisation has been a means of improvement for various industries. It has helped them survive the competition and serve customers better. The same goes for the banking sector. Almost all public and private financial institutions have adopted the technology. From interactive kiosks to digital payment options, they provide a range of Digital Banking services. These make banking convenient as compared to physically visiting the bank.

You get it activated along with other facilities while opening the Saving Account. Once done, all central banking transactions take place over the internet. Whether transferring money, paying bills, or checking account balances, you only require your device. This eliminates the need for withdrawal slips and other paperwork. Therefore, you do banking in a hassle-free manner. If you want to start using Internet Banking, here are some benefits:

Total control

With digitisation, you get to carry the bank with you on your smartphone. Every transaction, product, or service is accessible at your fingertips. This saves time and the cost of visiting the bank. Also, you need not seek the assistance of a bank representative to perform tasks. Now, updating your passbook, issuing cheques, making Fund Transfers, etc., happens on your device. You have total control in initiating them and getting alerts with Digital Banking in India.  

24*7 access

The best part about using Online or Mobile Banking facilities is round the clock availability. Emergencies and other mishaps happen anytime. During such instances, it is not feasible to wait to visit the bank. This constraint gets eliminated when you open an online Bank Account. Here, you get access to Net Banking services that are accessible anytime from anywhere. Hence, you need not worry about making it to the bank to conduct transactions.

Efficiency

If you need to Transfer Money, check account balance, or perform nearly any other banking transactions, you will queue up in the bank. With digital services, these transactions get completed within clicks. You only must log in or banking apps, enter the passcode and access the Saving Bank Account.

Security

Contrary to popular belief, digital products get secured with advanced encryption software. This protects your Bank Account against fraudulent threats. You also get two-factor authentication with a one-time password, fingerprint, and passcodes. Despite these measures, safety depends on your operational practices. Hence, make sure to consider the security standards and avoid neglecting warning signs for safe banking.

Technology has made it easier to access convenient services online. Due to this, you get facilities like financial planning tools, Loan calculators, Investment platforms, banking apps, automated Bill Payments, online bank statements, etc.

FAQs About NRI Fixed Deposits

 A Fixed Deposit is a good investment tool for people who prefer conservative and safe means of investments. You need to accumulate a specific sum and deposit it within a specific tenure. Doing this keeps your investment safe while you earn higher interest rates on the deposit than parking the sums in the Savings Account.

Both Resident Indians and Non-Resident Indians can open FDs out of their savings. This article highlights the most common and frequently asked questions about NRI Fixed Deposit.

What are the different types of FDs NRIs can open?

You can open three different types of NRI FD: Non-Resident External Rupee or NRE Fixed Deposits, Non-Resident Ordinary Rupee or NRO FDs and Foreign Currency Non-Repatriable or FCNR Deposits.

How to open one?

If you choose to open an NRE or NRO Fixed Deposit, you can do it directly through Internet Banking. Choose the amount you seek to invest and the investment tenure. The FD gets opened instantly, and the bank assigns an FD Account number to you. However, if you want to open an FCNR Deposit, open the account and deposit the specific foreign currency. Once you have opened it, follow the same steps with NRE and NRO FDs.

In what currency can I create the deposit?

Even though you can only deposit foreign currencies in the NRE Account, the sums immediately convert to INR. You can deposit both INR and foreign currencies in NRO Fixed Deposit online that gets converted to INR. As such, both NRO and NRE FDs are Rupee deposits. Only your Foreign Currency FDs get opened in the foreign currency.

In what currencies can I open my FDs?

When you open NRO Fixed Deposit Account, your currencies are in INR. However, for foreign currency deposits, FDs are in USD, GBP, EUR, JPY, CAD, AUD, NZD, SGD, KHG and even SEK, DKK. However, check with your bank about accepted deposit currencies as a few banks only allow the basic currencies, i.e., USD, GBP, EUR, CAD, AUD, and JPY.

What are the interest rates offered?

The NRI FD interest rates on your deposits are not constant. It changes periodically by the Reserve Bank of India and the banks offering NRI services. Typically, the interest rates for NRE and FCNR Deposits are the same, whereas the interest rates for NRO Deposits for resident Indians are the same.

What are the minimum and maximum deposit terms?

The minimum deposit term for NRE and NRO Deposits is seven days, whereas the maximum term is 10 years. For FCNR Deposits, the minimum investment term is a year, and the maximum investment is five years.