4 Reasons Why You Should Open An NRI Banking Account

Banking has become rather convenient today, whether you are a resident Indian or a Non-Resident Indian (NRI) living abroad. Today, you can access your bank account over your mobile phone screen or your desktop/laptop computer within seconds. Whether you want to open a savings, current or NRI banking account, you can do it all online. Not only this, you can even transfer funds easily. As an NRI, you can open NRE and NRO accounts and FCNR deposits, depending upon your requirement. Once these accounts are opened, you can access your funds from any corner of the world, rather easily. So if you are an Indian living abroad, here are 4 reasons why you should open an NRI bank account.

1. You can easily repatriate funds

As mentioned above, you can open Non-Resident Rupee External (NRE) and Non-Resident Rupee Ordinary (NRO) bank accounts as an NRI. Both these NRI banking accounts allow you to easily repatriate the funds parked in them. Just like a traditional bank account, you earn interest on your savings parked in NRE account, and both, the sums parked and the interest you earn on it; is freely and fully repatriable. In case of NRO accounts, you can repatriate the sums parked, but you need to pay the applicable taxes before doing so.

2. You do not need to maintain higher balances

Most banks offering NRI bank accounts in India have significantly reduced the mandatory minimum balance maintenance requirement. Just like a basic savings account, you do not need to maintain more than ₹10,000 as the monthly minimum balance in your NRI account. This proves extremely beneficial if you are earning sums in a currency that holds a higher value than INR. For instance, if you are earning in USD, your minimum deposit can be as low as approximately USD $150.

3. You get access to internet banking services

Just like with your regular savings and current accounts, you also get NRI net banking services. This way, you can easily send money to and receive money from your family in India. You can also open both, NRE and NRO accounts and transfer funds between the two types of accounts easily. Moreover, you can also maintain a foreign currency fixed deposits using the sums parked in NRE and NRO accounts and open these FDs via your internet banking enabled NRI account.

4. You can avail tax benefits

Opening both, NRE and NRO bank accounts come with their own set of advantages, with tax benefits being the most prominent reason why you need this account. However, you need to research about the various types of NRI banking services and accounts before you open one – especially the aspect related to tax benefits. The interest earned on your savings parked in NRE accounts and FCNR deposits accounts is tax-free in India, but you have to pay TDS (Tax Deduction at Source) on your NRO account savings as per the Income Tax rules in India. You also have to pay a small amount as tax if your wish to transfer funds from your NRO account to any NRE account.
Final Word: As is apparent, there are several advantages of opening your NRI bank account. From NRI internet banking services, to easy repatriability and opening accounts online, everything is possible. Modern day NRIs can easily and conveniently complete their banking transactions within seconds from anywhere in the world. You can easily send money to your loved ones, transfer funds from one account to another and even withdraw funds from these accounts whenever you need.