We all aim to excel and succeed in life. Whether it is academics or career, we have some expectations to meet. Some courses or job opportunities are not available in India. We collect and save money to travel overseas for fulfilling our aspirations. However, we must not forget our responsibilities towards our family in India.
Banks encourage you to open an NRI account for depositing foreign currency. As a non-resident Indian, it is safer to enquire about the NRI account interest rates before submitting the account opening application. They differ between banks and the facilities they provide. Some give an interest rate between 3% and 6% per annum to customers opening the account. All this information is available on their portal for easy access.
Payment
The bank pays you the NRI savings account interest rates every quarter or as decided. They calculate it on the available daily balance or as required by the regulator and bank. They are subject to change with time at the bank’s discretion or according to RBI’s directives.
Calculation
There are two categories of NRI accounts – NRE and NRO account. You calculate the NRE savings account interest rates depending on the end-of-day balance maintained in it. In case they change, the bank updates the information on the website.
Taxation
NRE interest rates are exempt from taxes in India, whereas the interest earned in an NRO account attracts taxes. Both the principal and interest earned are tax-free. You get the facility of repatriating interest and principal amounts anywhere globally with internet and mobile banking services.
Investments
The NRE account helps you invest in India across mutual funds. Joint account opening is possible with another NRI or Person of Indian Origin (PIO) and operated on either or survivor basis. Assign a Power of Attorney to transact on your behalf. However, they might have limited access to your account.
Payment frequency
You get the best NRE account interest rates. Every quarter, on 31st March, 30th June, 30th September, and 31st December, the payment frequency is subject to change.
Currency
The bank maintains funds in Indian rupees. Open it with a deposit of INR 5 lakh. The total relationship value within six months should amount to a minimum of INR 30 lakh. They calculate it by aggregating the average quarterly savings account balances and term deposits, insurance, investments, and mortgage loan outstanding. Thus, 40% of the loan’s net balance goes towards TRV computation.
Other accounts
As an NRI, banks also offer you attractive NRO savings account interest rates of up to 3% per annum. The account helps you manage your Indian rupee earnings while residing abroad. They are the ideal choice for those who have some form of income in India while overseas, such as rental property, mutual fund dividends, pension, fixed deposits, or other similar sources.
