Advantages of Opening NRI Bank Accounts

 Banking services have evolved drastically today. Banks offer all kinds of accounts apart from the traditional savings and current accounts. Today, you can open online accounts, zero balance accounts, special account for women, children, and seniors and so on. Moreover, all your banking needs can be addressed without ever stepping foot in the bank.

Recognising the fact that more and more Indians are considering foreign prospects, banks also offer NRI bank accounts. These accounts enable Non-Resident Indians to conduct their transactions from any corner of the world. Here are the advantages of opening an NRI account.

Advantages of NRI bank accounts

There are two main types of NRI accounts in India. The primary benefits are –

1. Repatriation advantages

One of the most prominent advantages of NRI bank account is the repatriation advantage that comes with it. You can quickly repatriate and move funds from both, NRE as well as NRO accounts. You can repatriate both, the principal sums parked, and the interest earned on the deposits from your accounts while you are abroad. While the funds in the NRE account are freely and fully repatriable, you can repatriate funds from NRO account after paying the applicable taxes.

2. Convenience

Another essential advantage of these accounts is that they are very convenient. Most banks allow the customer to open online NRI accounts. You can be based in any foreign country and open your account remotely, only by filling the account opening form and attaching the necessary documents. You can use your net banking platform to open this account and avail all the features and benefits that go with NRI bank accounts.

3. Tax Benefits

Before you finalise your NRI savings account – whether an NRE or NRO, you should read up about the tax benefits that come with both accounts. This will help you select the right kind of account. In India, the interest you earn on both, NRE savings bank account and your NRE fixed deposits are tax-free. However, the savings parked in the NRO account and your NRO FD is subject to TDS by the Income Tax laws of India.

4. Minimal balance maintenance

Several banks offering NRI Accounts in India have reduced the minimum balance requirement to a considerable extent. Most banks require their account holders to maintain as low as INR 10,000 as minimum balance in their accounts. This has contributed to the popularity of NRE and NRO savings accounts among customers.

5. FCNR deposits

NRI Account holders can also book Foreign Currency Deposits. This is ideal for customers who to save their earnings in foreign currencies and earn interest on it. It is especially beneficial if you are earning in a currency that is higher in value as compared to INR, as it can promote higher savings. Moreover, the interest you earn on your FCNR deposits is tax-free in India.