Faqs On An NRO Account

For non-resident Indians to manage their income, investments, and transactions in India, along with the ease of opening a Bank Account, banks in India offer numerous options. The Non-Resident Ordinary or NRO Account is one of the several accounts that assist NRIs in managing their income in India. Earnings may take the following forms:

●      Rent

●      Interest rates

●      Dividend

●      Stock investments

You can place the earnings mentioned into an NRO online. The sum is translated from foreign currencies to Indian rupees (INR).

What documents are needed?

All account holders should complete and sign paperwork when converting a resident account. You need identity proofs, NRI status proofs, foreign address proofs, and two pictures. The NRI completes the open NRO Account online form with equivalent KYC documents. Abroad resident proofs could be work details, student status, dependent visa status, or a copy of the foreign destination's resident permit.

The Indian embassy or Indian bank branch with an abroad affiliation certifies this proof. Banks also want documentation of foreign financial activity, such as a cheque issued on an overseas account or a Credit Card statement that is less than six months old.

Can you open NRO Accounts jointly?

You can open an NRO account only with an Indian resident. When you open one, it can be a better alternative for NRIs who desire to open a joint account with family members back home. It is a benefit compared to an NRE Account, which you can only open with another NRI.

What are the eligibility criteria?

Any Indian who has spent less than 365 days in India over the previous four years and at least 120 days outside India in a single year is considered an NRI. Anyone who meets such requirements is qualified to open NRI Account. Anyone who leaves India intending to work abroad will automatically lose their residential status and acquire NRI status.

What are the options under an NRO Account?

NRIs can either convert their existing resident account in India to an NRO account or open a new NRO Savings Account. NRI accounts require documentary confirmation that the account holder is an NRI as defined by the Indian FEMA Act.

Conclusion

An NRO account handles money through Indian income sources. Since an NRE account cannot meet your Indian financial demands, you should consider opening an NRO account. It enables you to continue handling your Indian finances without paying taxes. You can manage the money you make in India internally with the NRO Account.

Why Opt For Priority Banking Services?

Many private banks in India have followed international banks in providing specialised services to a specific set of priority customers. Their average balance in the bank or the banking relationship duration usually determines their eligibility. While some automatically get the status of a priority customer, others need to apply for it.

Priority Banking differs from Wealth Management. Wealth management service is concerned with providing first-class customers with customised services for all their financial needs, like investment advice and portfolio management. Preferential Banking provides the same banking services to priority customers at specialised rates or offering a particular convenience level.

Benefits

The Priority Bank Account offers tailored services to those who prefer premium access, like market insights, research reports, exclusive offers, and bespoke privileges. You get a dedicated relationship manager for assistance, eliminating the need to queue up for transactions. They take care of all your banking needs.

Other benefits of Premium Banking services include preferential remittance rates, higher interest on Fixed Deposits, free unlimited ATM withdrawals, etc. Additionally, enjoy exclusive entry to premium lounges at major domestic and international airports. You can also benefit from complimentary pick-up, drop-off, and meet-and-greet services from there.

Why become a premium customer?

Each individual and household has varied requirements depending on their financial situation, background, relation with technology, etc. Determine whether you need heavy banking services for your personal and professional needs or if it is only a small part of your financial life.  You can access Priority Banking services if your total relationship value is Rs. 5 lakh, which adds up to Rs. 30 lakh within six months of account opening.

The TRV includes the total of all accounts in a family, including the quarterly balance of all Savings Accounts and end-of-period Term Deposits, Investments, Insurance, and Mortgage Loans outstanding. 40% of the net balance of the Home Loan or Loan Against Property is a part of TRV computation.

Documents required

The documentation required for Preferred Banking customers differs according to their residency status. For instance, you must submit proof that you are an Indian resident, a Non-Resident Indian, or a Person of Indian Origin to get the most advantages from your Bank Account. If you think you need services repeatedly from your bank, consider a Priority Banking relationship.

You may also want an unlimited chequebook facility, which is unavailable to you as a regular bank customer. It is an option to enhance your banking experience and get exclusive benefits.

Final words

With the advent of Online Banking, the need for chequebooks, Demand Drafts, and physical bank visits has dramatically reduced. You can carry out most services by logging in to your account using the app on your smartphone. Your smartphone is the best ally whether you require emergency funds or need to transfer them to someone.

What Makes Debit Cards A Smart Banking Tool?

Plastic cards have replaced cash for decades now. This has also changed the banking system for many. Many do not rely on carrying heavy money to meet their daily purchases or payment needs. They need Debit or Credit Cards to withdraw or transfer funds from their Bank Account. The amount gets directly debited from the account. Owing to digitisation, its usage has become the new norm.  

Besides being a favourite, a Debit Card is also a practical way to transact. You need not go through the trouble of handling cash or fear losing them. A single card handles all your online and offline payment needs.

You can also link them with your Banking app or withdraw from an automated teller machine or ATM using the card. You can access innovative banking techniques when you have Debit Cards handy. Let us understand how it works smartly:

Swift transactions

With the card, you need not enter the bank credentials. Also, it requires minimal formalities to perform multiple transactions. Be it payments, transfers, equated monthly instalments, or withdrawals, every task is done instantly. If you use an ATM, you add the card and follow the on-screen instructions. As for automatic digital payments, link the card by entering its number and expiry date for single-click transactions.

Tracking

A significant portion of financial management is controlling your spending habits. This becomes challenging when you have no control over your expenses. You should have the plan to keep things in check. This is difficult with cash, as you need to track your payments manually. But you unlock trackability when you apply for Debit Card. This feature gives you access to transaction history, alerts, and bank statements.

Pre-paid payments

Unlike Credit Cards, debit directly happens through your Bank Account. This means you can access your funds electronically with the card. You need not borrow them to repay later. Hence, an online Debit Card is a prepaid fund source in your account. This enables you to bank with ease. You need not physically visit the branch to initiate transfers or receive funds.

Cashbacks & discounts

Banks incur lower overhead costs when you bank digitally. They save on staff payments, processing fees, administrative charges, etc. Hence, they reward you with discounts and cashback. This also sustains the competitive space as many banks have upgraded themselves online. Regardless of the motive, you can access perks during shopping, making payments, and settling bills through the Debit Card.

The contactless transaction has proven banking cards to be a boon in the industry. It saves your time and promotes convenience.

How To Boost Personal Loan Eligibility?

The coronavirus pandemic has proved the importance of financial planning and saving for the future. Whether paying for children’s education, re-establishing your business, or getting yourself out of a financial bind, you require enough money for everything. These days, if you are financially stable, you can conquer all problems without shortage.

A person must utilise their savings wisely. Instead of exhausting them, you can check Personal Loan eligibility at a bank and apply for it. It does not need collateral and is beneficial in assisting you in achieving various objectives. It is a popular solution for quick money. Therefore, improve your chances of eligibility and approval by following these steps:

Work on credit score

A credit score is a three-digit figure indicating how well you have managed credit. Banks use it to assess the risk of defaulting and learning about your financial discipline. A 750-point score or greater is ideal for easy approval. Determine your credit score and improve it by repaying your debts on time. Aim to keep your credit utilisation ratio low. A good credit score improves your chances of eligibility and gives you the lowest interest rates.

Maintain employment record

Banks want evidence of your repayment ability towards the debt to give you the best Personal Loan interest rates. They look for consistency in your salary history to see if you can sustain a financially stable future. A candidate staying in the same company for a longer duration is preferable over those changing jobs.

Longer repayment term

Banks assess your present monthly repayment responsibilities when analysing your application. If the monthly obligations total half of your net monthly income, including the instalment amount, you have a higher chance of approval. If your monthly instalments are a sizeable sum, choose a longer term to lower equated monthly instalments on the Personal Loan EMI calculator.

Check the eligibility

Before applying, use a Personal Loan eligibility calculator to see if you will most likely avail of it. It allows you to conduct a soft search that will not leave a mark on your credit record. You can apply online once you have discovered a fair deal. After applying, the money may reflect in your account soon.

Apply occasionally

Filling out too many Loan applications gives the impression that the borrower needs money desperately and reduces your credit score. It also paints a negative picture of your financial status. You should apply only when needed. Always research well and check the schemes available online to get an idea.

Where to apply?

With many banks becoming technologically advanced, you can select the desired Loan scheme from the Banking app. It is a free-to-download application that enables you to perform various banking activities using your internet-enabled mobile phone. The application lets you carry out banking activities from your mobile. Once downloaded, you can conveniently conduct several types of transactions and check Personal Loan eligibility.

5 Simple Tips For Completing The Personal Loan Process Successfully

You have lots of ambitions in life that you wish to achieve step-by-step. Firstly, you learn to educate yourself, manage your responsibilities, have a family, start earning, and finally save for retirement. Amidst this circle of life, you come across certain situations where you require immediate financial assistance.

A Personal Loan lets you manage urgent expenses and save the day. It is known for its versatility and multi-purpose usage, like paying for weddings, home renovations, medical emergencies, or children’s education. Sometimes, it also reduces the burden of financial dues or enables you to plan for additional expenses. Let us discuss simple tips to simplify the process:

Credit score

Remember, all options require borrowers to have a good credit score. Also called a CIBIL score, it is a three-digit number showing your creditworthiness. A credit score usually ranges between 300 and 900 and is derived using your credit payment history across various Loans over a period. Most banks ensure your score is above 700 points with repayment capacity. With a high CIBIL score, you can quickly proceed with the application.

Eligibility

Banks have varied eligibility criteria for Personal Loans. However, the standard requirements include credit score, age limit, employment type, three-month bank statement, and minimum salary or income. You must check and compare the options before finalising the scheme and shop around for better ones suiting your income and eligibility criteria.

Borrowing options

Every individual’s financial requirement differs. Therefore, most banks offer multiple borrowing options. For instance, you may need money to buy a car or gold jewellery, start a business, or buy a house. You find specific options for these, but opting for a multi-purpose Loan without collateral is the best choice.

Affordability

You generally repay the amount in equated monthly instalments. Banks want to know your repayment capacity and affordability before approving your application on the Banking app. When checking your affordability, keep your debt obligations in mind. Plan your monthly budget for clarity using the Loan calculator and save money for repayments. Remember to pay the amount on time to increase your credit score and reliability.

Documentation

The approval of your Bank Personal Loan application depends on the relevant documentation you need to support the information provided. You can check the app and prepare the documents before applying. You also get Instant Loans to encounter emergencies, such as medical expenses. It is an entirely paperless procedure with flexible repayment options.

Points to note

It is safer to apply online as it saves time, commute, and effort. However, remember to compare the Personal Loans interest rates since they directly impact the repayment amount. The higher the interest, the higher the amount payable.

Conclusion

You get easy access to money with these financial products. You need not worry about exhausting your savings since these Loans get instant approval and disbursal within a few hours.

What Benefits Do ELSS Funds Offer?

Equity Fund investors often lose their funds in the market as they are unaware of the taxation rules. It significantly lowers their investable income. When you have less investable income, your returns get affected. For avoiding this, most investors opt for an Equity-Linked Saving Scheme. ELSS falls under Equities. It invests most of the funds in equity-related products. It is ideal for those who wish to avoid paying taxes.

Besides tax benefits, ELSS offers other benefits too:

Lock-in duration

Usually, good Mutual Fund portfolios are better for long-term investments. But they do not come with lock-in periods. This affects your investment growth considerably. Under the ELSS Mutual Funds, your funds are secured for at least three years. It even lets you continue investing for more than that. For example, say you invested Rs. 500 and got 50 units on March 31, 2022. In this case, your lock-in period will end on March 30, 2025.

Moreover, your investments get exempted from taxes during this period. This lets you maintain healthy investment behaviour.

Long-term value

The lock-in period extends beyond three years for ELSS Funds. Investors can continue their investment growth for a long time. They can also redeem them if need be. Since this scheme offers tax exemption, you may reap better returns.

Saving discipline

The minimum amount under ELSS is as low as Rs. 500. It is also accessible to those who have just started earning. This empowers them to turn their savings into investments. Over time, they develop a healthy financial habit.  

New investors

A Mutual Fund Investment may sound intimidating to new investors. But since they have little market knowledge, they need a not-too-complex scheme. For such investors, ELSS is ideal. It provides the freedom to invest without needing to bear taxes. Also, it lets them invest in both Equity and Debt Funds.

Higher returns

ELSS generates higher returns. It may boost your investments significantly within lesser time. Unlike other investment schemes, it does not allow partial withdrawals. This facilitates the growth of investments. It will enable it to increase with time. Also, the returns in an ELSS are tax-free. So, you automatically reap higher returns.

Upper limit

Here, the investor could invest as much as they want. There are no maximum limits for investing. This broadens your accessibility to big investors.

Options

ELSS comes in different forms: growth, dividend, and dividend reinvestment. Under the growth scheme, the investor gets gains only during redemptions. Under a dividend scheme, the investor indeed receives timely dividends. Under the dividend reinvestment scheme, investors could reinvest dividends. Depending on your financial situation, you could choose between these three and invest offline or through the Mutual Funds app.

Perks Of Opening An NRO Account

When an individual shifts to another country, they find it slightly tricky to manage the income generated in India. Their regular resident Bank Account does not let them deposit foreign currency and convert it into INR. In times like these, they need a Non-Resident Ordinary Account.

An NRO Account is a type of Non-Resident Indian banking facility. It allows global Indians to manage and park the money earned in India. That way, they systematically house their funds from India and overseas. The following are the perks:

Smooth repatriation

The account provides the holder with easy repatriation. This implies they can transfer up to USD 1 million per financial year through International Remittance. Moreover, the interest accrued is taxable at only 30%, deductible at the source.

Minimal balance requirement

Most banks issue minimal balance requirements, as low as INR 10,000. This helps the holder utilise the funds in their account worry-free.

Easily accessible

This NRI Account is readily available online. You only need to fill out an application form and upload relevant documents. Once verified, you will receive your account information almost instantly.

No risk of exchange rate fluctuations

Funds in the account are not subject to exchange rate risks. Since it maintains your money in INR, you need not worry about conversion losses.

Investment & loan facilities

You can easily invest in term deposits, Mutual Funds, etc., through transfers from the NRO Account. This helps you earn from your savings in the resident country. You may also use these investments as collateral to get loans. The banks charge lower interest rates as they get secured through the account. This way, you get swift and smooth financial assistance during emergencies.  

Joint account option

Any NRI or Indian resident (related to you) is allowed to open an NRO Account in India with you. This option gives your close relative access to your account.

DTAA

Although NRO Accounts are not tax-exempt, the account holder can avoid paying double taxes. They need to opt for the Double Taxation Avoidance Agreement or DTAA. The Reserve Bank of India has entered a DTAA with several countries, intending to discard the need for double tax payments.

Interest on Fixed Deposits

When you opt for an NRO Deposit, you earn interest on the funds in the account. This multiplies the money in your NRO Account.

Ideal place to park Indian income

The account is a viable option to save your foreign earnings and park income earned in India. You can easily access the account to manage your Indian expenses whenever you are in the country.

Trading facility

Some banks allow you to link the NRO Account to a PIS Account to trade in Indian stocks listed on a recognised stock exchange. PIS stands for Portfolio Investment Scheme, an initiative that facilitates NRIs' trading activities.

How Does A Wealth Account Manage Your Money The Right Way?

Money holds immense value in our lives. It determines your standard of living and financial security. Very often, money is considered a status symbol. It is a harsh reality. The amount you hold largely depends on your investments and how well you manage the returns reaped. Many fail to manage their wealth the right way. Opting for a Wealth Account opening allows you to handle money quickly and efficiently.

A Wealth Account is primarily curated for wealth creation. It enables you to make profitable investments and securely park returns from them. Following are the different wealth products and services it offers that manage your hard-earned funds rightly:

A dedicated account

When you make investments, you generally link them to your Savings Account. The investment returns are credited to the account periodically. Since Savings Account is most used to meet daily banking requirements, it could be possible you could end up using all the returns. With a Wealth Account opening, you have a dedicated account. All your investment returns can be parked here. This ensures you do not use your investment returns over unnecessary spending.

Gain exclusive market insights

This is a great wealth solution offered by the account. Here, the most experienced investment gurus prepare market reports. They help you understand the best stocks to invest in and predict future market standings. Though market standing is unpredictable, these reports are helpful to brace for the impact and make appropriate investment decisions.

Having an investment expert on board 

Do you wish to make high-valued investments but lack the time and expertise to do it yourself? You can channel your money to profitable investments by signing up for wealth management. Here, you have a team of dedicated investment experts to help you with your investment journey. They understand your financial profile and investment objectives. Based on this, they recommend the most suitable investment options.

They also monitor and modify your investments whenever required. This often takes some burden off your shoulders. So, sit back and enjoy your investment returns to the fullest.

Access to a range of wealth products

The returns you reap largely depend on the wealth product you invest in. If you pick the right wealth product, your investment journey becomes easy. Choosing the right product is not easy as many wealth products are available today. With the account, you can access a range of Wealth Management products like Fixed Deposits, Mutual Funds, Private Equity, Real Estate Funds, and many other beneficial products.

Consider your investment goals and risk profile to determine the best wealth products for investment.

How Does Income Impact Personal Loan Approvals?

Whether a planned or unforeseen expenditure, a Personal Loan meets all your financial requirements. Personal Loans are unsecured credit. This means you need not pledge your assets as collateral to secure the Loan amount. Apply for Loans at competitive interest rates and flexible repayment tenure. These factors collectively make Personal Loans a good financing option for salaried individuals.

You can apply for a Personal Loan for salaried online within minutes. Before you start, you should know the factors influencing the Loan approval. The bank primarily checks your credit score, repayment history, and salary for Loan approval. Let us understand how your salary and work profile impact the Loan approval.

Income influence

From qualifying for the eligibility criteria to Loan approval, your salary has a significant say over your Personal Loan application. To apply for a Personal Loan, you need to be a minimum of 22 years and a maximum of 60 years. Both salaried and self-employed applicants can apply for this Loan. You need a monthly income of at least Rs. 20,000. Your salary helps the bank determine your repayment capacity.

A higher in-hand salary translates to a better repayment capacity. Given your high salary, you have a significant amount in hand. This makes the bank confident that you can repay the applied Loan amount without defaults. Banks even readily offer pre-approved Personal Loan to applicants with a good salary. Your income determines the maximum Loan amount you can apply for.

With a higher salary, you can request a higher amount. The bank approves such a request as they are aware of the repayment capacity you hold. Your income influences Personal Loan interest rate too. When you portray a solid repayment capacity, the risk associated with your Loan request is significantly low. Due to this, the bank might offer a Loan at a lower interest rate. You also get a free hand in choosing a flexible repayment tenure.

Debt to income ratio

Now, you may think you have a reasonable income, and there is no way the bank will reject your Loan request. The bank still compares the salary with your debt obligations. This is called the debt-to-income ratio. A higher debt-to-income ratio negatively impacts your repayment capacity and overall profile. A debt-to-income ratio of 40:60 is considered reasonable. This way, you get a chunk of your salary to make other repayments.

This also ensures a considerable burden is off your shoulders. Think wisely before applying for a Personal Loan. You can now apply for one through a Banking app. Download the bank’s mobile app and apply for the Loan instantly. 

How To Land With The Best Personal Loan Interest Rates Online?

Personal Loans are unsecured and considered multi-purpose, offered by every bank and financial institution. They are the best way to tackle your immediate financial needs. From financing your child’s wedding to booking a holiday, you can bankroll all your desires with this Loan. You find several options online.

But it is essential to get competitive Personal Loans interest rates as it allows you to make repayments easily. You need to assess your repayment capacity, compare banks and lenders, and check your eligibility before applying. The following are the best ways to get the best Loan interest rates:

Credit ratings

It is necessary to maintain a good score as it shows your creditworthiness depending on how you managed the Loan earlier. A score of 700 or 750 is ideal for Personal Loans. As a rule, the higher your score, the better Loan options you get. Lenders decide on the repayment terms, amount, and interest rates based on your credit scores. A higher score means you can negotiate the terms offered.

Ensure to compare

A little research goes a long way when applying for Personal Loans. You can compare lenders with the desired interest rates and features. It takes time but ensures you make a wise decision. You need to check your Loan eligibility for the bank to disburse the amount in your account within a couple of hours.

Seasonal offers

All banks notify their customers about special offers via SMS or email notifications. Check them for applying for Personal Loans affordably. These offers allow you to get limited period discounts on the interest rate. Often, they are available when you apply for Loans online during the occasions.

Professional reputation

If you earn a high salary and work in a reputed organisation, you are considered a stable candidate for the Loan. Use this to your advantage for negotiating the lowest Personal Loan interest rates with lenders. Your company’s reputation helps you get a lower rate since the lender gains assurance of your financial stability and the ability to repay the Loan on time.

Things to remember

Nowadays, banks offer attractive terms on Personal Loans. However, it is safer to conduct detailed research before applying for Loans offline or on Banking apps. Before deciding on the lender, compare various aspects like interest rates, processing fees, repayment flexibility, prepayment charges, etc. It helps you settle for a Loan that best suits your needs. Using the EMI calculator to plan your monthly budget, you should calculate the Loan EMI beforehand.

Ensure you opt for a Loan with an affordable instalment amount, interest rates, and tenure to reduce the financial burden.

Equity Mutual Funds And Their Benefits

Equities are pooled investment that draws money from various investors to garner a considerable corpus to invest in various stocks. Thereby, they are also called stock funds which are witnessing rising popularity as no investment avenue can generate as good returns as equities. Fund managers select the stocks to invest in, considering the objective.

The Equity Funds manager collects money from several investors and invests it in various investments to form a portfolio. The multiple benefits make it a profitable avenue for you to put your money:

Diversification

Equity funds offer diversification in many ways. They invest in several stocks, various sectors, and other asset classes. As an investor, you can own a share in equities of companies across multiple capitalisations and pan sectors. You benefit from the profits and reduce the risk with even fund distribution. Also, the presence of fixed income securities and other money market instruments further diversifies and balances the investment portfolio.

Professional management

Analysts with experience and expertise in fund management manage Equity Mutual Funds. They research and analyse the various stocks and market trends and aim to outperform the benchmark indices. They generate superior returns than the market indices for their investors. Thus, many investors who lack the skill, willpower, or time to track the market or predict the stock performance should invest in Mutual Funds.

Risk mitigation

Owing to diversification, where the fund corpus evenly spreads over various stocks, it also spreads the associated profits and risks. When one stock underperforms, the other picks up. Similarly, if one sector falls, the other balances the portfolio, reducing the loss incurred.

Wealth creation

Equities generate the highest returns among all kinds of investments. They can offer inflation-beating returns to help investors create a good corpus in the future. If you have long-term goals of capital generation, invest in them. They involve risks but bounce back if you hold them for a long duration. However, you can also invest in Debt Funds like CPs, CDs, Corporate Bonds, Treasury Bills, Government Securities, etc.

Cost-efficient

Investing in equity schemes is cost-efficient. You can be a shareholder in various companies through small investments without a high capital requirement. As the fund size grows, the amount spreads over more fund units, making the cost cheaper. You can invest in a lump sum and SIP investments with an amount as low as Rs. 500 on the Mutual Fund app.

Liquidity

The sale and purchase make online Mutual Fund highly liquid. Similarly, investors can quickly redeem the units whenever desired. Once redeemed, the money equal to the unit value when sold gets deposited in your account within a few days.

Dividend income

Under a dividend plan, you get dividend income either monthly, quarterly, bi-annually, or annually. A dividend is the cumulative profit of all stocks. The profits earned from an Equity Fund are divided among all investors as per their unit holding after deducting applicable charges.

7 Benefits Of Investing In Mutual Funds

Today, you get access to various financial instruments to start your investment journey. The market has countless emerging avenues ideal for effective wealth growth. One of them is Mutual Funds. Such schemes utilise your invested money in financial assets like stocks, bonds, debentures, and other securities.

A Mutual Fund Investment pools money from different investors with a common objective. It distributes your funds in varied asset classes based on your chosen scheme. Your role is to select a basket of securities that best suits your financial goals. Here are some benefits of investing in them:

1. Financial discipline

You must focus on expanding your earnings to ensure a financially stable future. These schemes help you do just that. They follow a simplistic structure and offer promising returns. This way, you develop a healthy investment habit and reap gains with minimum effort.

2. Power of compounding

When you invest in a Mutual Fund, you enjoy the perks of compounding. The more money you invest, and the longer it sits, the more compound interest you earn. For example, you invest Rs. 500 with 10% interest yearly. Now, your principal amount will be Rs. 500 and the earnings at the end of the year will be 10% of Rs. 500.

3. Portfolio diversification

As an investor, you should spread your investment across different assets. This practice enables you to mitigate the risks associated with holding one investment. It preserves your capital and increases your risk-adjusted returns. Mutual Funds make this task more manageable. Since they deal with varied assets, you need not worry about concentrated threats to your capital. Besides, you also get the option of managing your portfolio through any Mutual Fund app.

4. Transparent trade practices

These investment vehicles are handled and monitored by professional fund managers. Such individuals hold extensive experience and knowledge of the market. They ensure transparent trade practices and safeguard your confidentiality.

5. Variety of types

Such investment schemes come in different types. Some of the most popular ones include SIP Plans, Hybrid Funds, Equity Funds, Debt Funds, etc. Each meets a unique investment requirement. As a result, you get to choose one that satisfies your needs the best. For example, if you do not have enough funds to invest, you can opt for a Systematic Investment Plan. This scheme lets you invest as little as Rs.500 at regular intervals.

6. Higher liquidity

An online Mutual Fund Investment offers excellent liquidity to investors. This works in your favour when you have sufficient funds for short-term investments. It lets you use liquid funds in the future in case of urgent cash requirements.

7. Easily accessible

Nowadays, you need not even step out of your house to invest in a Mutual Fund. You can find numerous fund houses online with a simple button. These websites provide straightforward application processes and minimum documentation.

Answering The Most Common Questions About NRE Interest Rates

Whether you become or already are a non-resident Indian, you need to open an NRI Account on priority. Operating through an NRI Account fulfils your legal obligation and is advantageous. The types of NRI Account you should open depends on your banking requirement. Non-Resident External or NRE Account is apt if you wish to park your foreign earnings and make seamless remittances.

When opening an NRE Account, pay attention to its interest rate. A higher interest rate works in your favour. Let us understand more about the account and the NRE Account interest rates through FAQs.

What are the NRE Account interest rates offered?

This depends on how you choose to hold the account. There are three ways you can hold an NRE Account: Savings, Current, and Fixed Deposit. A Savings Account is ideal to meet your daily banking needs. A Current Account is typically used for business transactions. FDs are perfect if you wish to secure and grow your savings. These options have a different interest rate offerings.

Savings Account offers a reasonable interest rate that allows you to keep your money working. However, the interest rate is lesser than that of an FD. Invest in an NRE Deposit to earn competitive interest returns.

How to get the best interest rates?

NRE Account interest rates vary for each bank. The only way to get the best rate for your account is by exploring the market. Do not open an account without doing thorough market research. Run a search online before opening an NRI Account. Check the interest rates. Open an account with banks that offer the highest interest rate and a host of other benefits. You can easily find information on the bank portal.

How are NRE Savings Account interest deposits calculated?

Like every other Savings Account interest calculation, this one depends on the balance you maintain. The closing day balance in your account is considered to calculate the interest earned. A higher balance attracts a higher interest rate and vice-versa.  Generally, most banks follow a quarterly interest payout.

However, they may choose to change the interest payout policy anytime. Watch for updates on the bank’s website to know about NRE Savings Account interest rates changes.

What are the tax implications on the interest earned?

Interest earned on your NRE Account deposit is tax-free. You can also entirely repatriate the interest earned to your country of residence at any point. The tax implications apply to interest earned from an NRE FD as well. However, if you transfer the interest earned from your NRE Account to your NRO Account, you must pay taxes.

Points To Note Before Beginning The Wealth Account Opening Process

Savings forms an essential part of achieving wealth growth. However, it does not pertain to merely accumulating capital. You also need to know how to put it to good use based on your financial goals. Several investment instruments are available for this purpose. The key is to choose them carefully depending on your risk appetite, flexibility needs, and investment horizon.

Not all are equipped with adequate knowledge to make these decisions. Hence, several mediums help with Wealth Management. You get them in passive forms, like blogs, market insights, tutorials, books, etc. But if you need active assistance that addresses your investment concerns, a Wealth Account opening is a good idea. It provides you with bespoke wealth solutions. Check these aspects to begin the process smoothly:

Qualifying requirements:

Maintaining a high balance with the bank makes you eligible to open the account. This gets calculated through your Total Relationship Value (TRV), which typically amounts to Rs. 5 lakh. Additionally, you must build this TRV to Rs. 30 lakh over six months after opening the account. This makes you eligible to enjoy its benefits and access Premium Banking products.

Beneficial aspects

Managing wealth is an elaborate process that requires consideration of various aspects. Hence, you get to choose from a wide range of products after the Wealth Account opening. They include Mutual Funds, Remittances, Fixed Deposits, Insurance, Structured Products, etc. Assess how they fit into your portfolio to meet your financial goals for creating an apt combination. A balance of short- and long-term instruments is ideal for proper financial planning.

Charges

Like any other Bank Account, this account attracts maintenance changes. The amount is slightly higher than a Regular Savings Account as it offers Wealth Management services. Such charges may differ from bank to bank. Some of the standard ones include an annual fee for Debit Card usage, penalty on local currency cheque returns, transfer cost, etc. Look into them to set your expectations right.

Convenience

Today, you get to access almost everything at your fingertips. So much so that you expect it from every service you interact with. Banks understand this and offer the needed convenience for Wealth Account opening. They let you carry out the process through banking apps and web portals. This eliminates the need to visit the bank physically to complete the formalities. Moreover, the opening procedure gets done within a matter of minutes.

Management rules

Opening the account is the first step to getting started on your Wealth Management journey. Once done with the formalities, you need a calculated approach to manage your funds in it effectively. Thankfully, this is not a struggle as you get assigned a dedicated relationship manager. They regulate your investment decisions and account maintenance. Such expert opinions add value to your wealth growth journey.

SIP Investments And Their Benefits For Investors

Investments are the best way to grow wealth and fulfil your future needs. As savings are never enough, money never grows when kept in your Bank Accounts and pockets. Increase it by investing in financial assets and classes, providing decent returns as savings. As your responsibilities increase, you need to plan a financially secure future.

A Systematic Investment Plan is a mode of Mutual Funds Investment for the long term. You invest periodically every month or quarter throughout the 10 to 15-year tenure. The fixed amount of money can be as low as Rs. 500. By this route, you invest in a time-bound manner without worrying about market dynamics. These benefit over the long term due to average costs and compounding.

Benefits

As you get ready for work or even decide to take a break from it, the investment plan is constantly working towards your goals and helping you keep your success in progress. If you are keen on investing, know these benefits:

Power of compounding

Regular investments in a SIP scheme lead to compounding. It means the investor gets more units when the scheme’s Net Asset Value is low and lesser units when it is high. You earn interest on your interest as it gets added to the original amount and is beneficial for long-term wealth creation.

Rupee cost averaging

Investing through Systematic Plans gives you the advantage of rupee cost averaging. It means you get more units when the scheme’s Net Asset Value is low and vice-versa. It brings down the average unit cost over the long term. Investing in Mutual Funds online has become smoother, thanks to the Mutual Fund app.

Flexibility

As an investor, you get the flexibility to choose the amount, duration and plan interval. You can also modify the amount, change the interval according to your needs, pause, or stop the investment. You do not strain your finances or compromise your needs by investing small amounts regularly.

Investment discipline

Investment through SIP Plans teaches the value of disciplined investing in an investor as they are committed to investing a specific amount for a fixed period which is essential in long-term wealth creation. There is no need to time the market or worry about the potential returns since you invest small amounts.

Power of starting early

The earlier one starts saving and investing regularly, the easier it is to achieve your goals. For instance, if you start investing Rs. 5,000 monthly at 25, a corpus of approximately Rs. 2.76 crore is generated at the time of retirement. If you wait five more years, till 30, the approximate corpus generated falls to Rs. 1.54 crore. There is a difference of Rs. 1.21 crore, the cost of delaying the plan.

Performance

The value of a Mutual Fund Investment depends on the performance of the securities held by the company. When the portfolio performs well, the investments grow and vice versa.

Steps To Actively Manage Your Mutual Fund Portfolio

Mutual Funds are investment vehicles that can assist you in meeting both your immediate and long-term financial goals. However, you cannot take advantage of compounding’s full potential until you put in the effort to manage your portfolio responsibly. When it comes to investing, successful people set off to a good start, maintain discipline, and finish strong while taking calculated risks.

When selecting assets for a Mutual Fund Portfolio, you get overwhelmed by the information freely available online. Investors actively prefer to delegate their capital management to a financial advisor. Though advisors are helpful and often irreplaceable partners in your financial journey, having at least a minimum of knowledge about them is preferable.

Active management

Once you have invested in an MF Portfolio, monitor how well it is performing. If your investment horizon exceeds one year, do not worry about the plan performance daily. However, it is a good habit to keep an eye on the development of your investment and be aware of its performance. The following are some steps to manage the portfolio actively:

Continue SIP

If you are investing through the Systematic Investment Plan, raise your investment while the market slumps. When the market is bearish, it presents an excellent opportunity for fund managers to purchase high-quality stocks at lower costs.

Portfolio rebalancing

Rebalancing in Mutual Fund Portfolio management refers to bringing it back in line with the asset allocation initially intended for it. Because of changes in the market state, the distribution of funds included within your portfolio will shift over time. You should analyse it regularly and compare it to market benchmarks and other industries.

Exit constant underperformers

Periodic reassessment can help you weed out chronically underperforming funds that are not contributing to the growth of your Mutual Fund Portfolio. Analyse past performance compared to that of a peer group and other benchmarks across rolling periods of one to ten years. However, if a fund consistently performs worse than its benchmark, consider selling it as soon as possible.

Fund Fact Sheets

A fund fact sheet enables investors to remain informed and updated on the most important aspects of their funds. These tidbits of information are ideal for beginner investors. It is a one to three-page document that provides insight into the fund’s investment objective, risk level, costs, past performance, and holdings details.

How to monitor?

Monitoring and assessing your Mutual Fund performance through Investment Banking apps is simple. Download it on your smartphone and get daily live updates of your portfolio performance. You can compare the funds quickly, receive timely notifications, investigate the comprehensive features of each fund, and more.

Conclusion

A robust allocation to Equity-Linked Investments can be beneficial to achieve long-term goals like retirement or children’s education. Similarly, Fixed-Income Funds might assist in accomplishing short-term goals.

Understanding Savings Account Tax Implications

Savings Account is a common financial product. The account allows you to park your earnings, reap attractive interest rates and easily access funds when required. You should open a Savings Account if you wish to grow your savings. You can choose to open an account at any leading bank or financial institution. Pay attention to the interest rates when opening the account.

A higher interest rate translates to higher interest income. Let us understand the connection between Savings Account interest rates and their tax implications.

Tax benefits and interest rates

Savings Account rates are calculated considering your closing balance at the end of the day. A higher deposit attracts a higher rate. Generally, an interest rate of 3.25% is offered on deposits up to Rs. 1 lakh. The interest rate hikes as the deposit amount exceed the given slab. Holding a higher account balance is always recommended to maximise your interest earnings. Besides, maintaining the minimum balance requirement contributes to your Savings Account.

Your contributions lead to an appreciation in your principal deposit, increasing your interest earnings.

How are Savings Account interest rates taxed?

Like every investment instrument, interest rates on Savings Account are taxable. When filling your Income Tax Returns, you should declare interest income from your online Bank Account under ‘income from other sources’. You get taxed as per the Income Tax slab rate you fall under. Note that different set of taxation rules apply to senior citizen holders.

There are a few tax deductions granted by the Indian government on your interest earnings. However, only Indian citizens are eligible to claim those.

How can you claim Savings Account tax deductions?

There are two ways to claim tax benefits online Saving Account opening: Section 80 TTA and Section 80 TTB.

Section 80 TTA

This was introduced during the Union Budget of 2013. The tax policy allows people to claim a tax deduction on their interest income. As per Section 80 TTA, you can claim deductions of Rs. 10,000 on the accumulated interest income from all your Savings Accounts. Individuals belonging to Hindu Undivided Family (HUF) and holding the Savings Account can claim this benefit.

Section 80 TTB

This was introduced during the Union Budget of 2018. The primary aim is to allow pensioners and senior citizens to earn more income by availing of the tax benefit. Here, you can claim a tax deduction of Rs. 50,000 on your interest income in a financial year. The tax benefit applies to all interest-generating investments like Saving Bank Account, Fixed Deposits, and Term Deposits. Anyone above the age of 60 years can claim this benefit.

Note: You can avail the mentioned tax deduction over and above Section 80C tax benefit.

Ways To Access Funds In Your Savings Account

Savings Account is a standard financial product that most banks and financial institutions offer. Park your savings here and earn profitable interest rates on your balance. Owing to its interest-generating abilities, Savings Account is considered a good investment instrument. A significant advantage of growing your savings is the ease of access. There is no lock-in period or tenure applicable to Savings Account.

You can access your funds anytime. Following are the ways to access funds in your Savings Account:

ATM withdrawals

The most common way is through ATM withdrawals. All Savings Account holders receive a Debit Card upon opening the account. You can insert it at any ATM to withdraw funds. As a security measure, these cards are inactive when you receive them. You need to activate them to make a transaction. You can easily activate them by setting a PIN at the ATM.

Generally, no charges are applicable to make ATM withdrawals. However, the bank may charge you a basic fee if you withdraw funds from another bank’s ATM. There is also a limit to the funds you can withdraw from your account daily. Reach out to your bank to understand the details.

Bank-to-bank transfer

If your close relative has a personal emergency and needs funds, you can help them out. You need not visit the bank. Just withdraw funds and help your family member. You could also make a direct bank-to-bank transfer. Make sure you activate online services when opting for an online Saving Account opening. You require the beneficiary details to make an instant bank transfer.

Ask them for their Bank Account number, branch name, and IFSC code. Feed them correctly on the bank portal. You can transfer funds and help your relative within minutes.

Direct debit

Direct debit works like an online transaction. This is generally used to make repayments and investments. You can use your online Bank Account to pay utility bills. Give standing instructions to your bank to make periodic payments like utility bills, Insurance premiums, and Loans. The bank directly debits the amount from the account. The automatic payment feature of the Savings Account helps you stay ahead of your bill due dates.

Cashier’s cheque

Another way to access funds is by writing a cheque. You could either write a cheque to yourself or another account holder. You need to deposit the cheque in the bank to receive funds. Make a note of the bank timings before visiting it to deposit your cheque. Alternatively, you can withdraw the cheque at the nearest ATM, provided they have a drop box.

Why Opening NRI Bank Accounts Is Beneficial?

Banking services have evolved. They offer different services besides traditional Savings and Current Accounts. Today, you can open Online, Salary, Special Accounts for women, minors, senior citizens, and so forth. Moreover, all your needs are addressed without stepping foot in the bank. Recognising that more Indians are considering foreign prospects, banks also offer an NRI Account.

These accounts enable non-resident Indians to conduct their transactions from anywhere. But before you open NRI Savings Account, let us understand its benefits.

Advantages

There are three main types of NRI Account: Non-Resident Rupee or NRE Account, Non-Resident Ordinary or NRO accounts, and Foreign Currency Non-Resident or FCNR Account. Here are its benefits:

Repatriation

The best part about NRI Savings Account is the repatriation advantage. You can quickly repatriate and move funds from both NRE and NRO accounts. You can also repatriate the principal sum parked and the interest earned on the deposits from your accounts while you are abroad. While the funds in NRE are freely and fully repatriable, you can repatriate funds from the NRO Account after paying the applicable taxes.

Convenience

These accounts make your life extremely convenient. Most banks allow you to open online accounts. You can be based in any foreign country and open your account remotely simply by filling out the application form and attaching the necessary documents. You can use Net Banking to open this account and avail all the benefits that go with NRI Accounts. Some Indian banks may require you to courier the account opening form with the necessary documents.

Tax Benefits

Before you finalise your NRI service, like NRE, NRO, or FCNR Account, you should read the associated tax benefits and charges. This lets you select the correct account. In India, the interest you earn on both NRE Account and NRE Fixed Deposits is tax-free.

However, the savings parked in the NRO Account and NRO FD are subject to Tax Deduction at Source under the Income Tax laws. Also, you can quickly transfer funds from the NRO to NRE after paying the applicable taxes.

Minimal balance maintenance

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

FCNR deposits

NRI Account holders can also consider FCNR Deposit. This is ideal for customers who want to save their earnings in foreign currencies and earn interest. It is especially beneficial if you make it in a currency higher in value than INR, as it promotes higher savings. Moreover, the interest you earn on such deposits is tax-free in India.

Before you open NRI Account Online, it is important to research the banks offering this service. While opening an account in most banks may be possible, it is better to consider their reputation and choose a nationalised bank. You may also assign a POA to maintain your account on your behalf.

Myths Busted About Online Bank Accounts

 

Digital Banking is considered necessary today. It has become widely popular owing to changing circumstances. Many have started using Digital Banking facilities as a necessity. Most banks realise the need for an online presence. Thus, they are offering Online Banking facilities to customers.

The online Saving Account opening is easy and takes a few minutes. However, many who need it in the current scenario hold back due to varied concerns. This happens due to a lack of awareness and familiarity with the concept. It stops them from taking the necessary steps despite its benefits. Let us break those myths and understand the concept better:

Lacks assistance

It is the common reason that holds back customers from this. Online Banking is easy, and you can operate it without any issues. However, the concern that gets highlighted is that they lack personal touch and guidance. This is a myth, as several online accounts have customer support available to help you with any issue round-the-clock. This assistance is in the form of chat, calls, and home visits.

Unsafe

This is another aspect that stops people from considering an online Bank Account. Although the internet is a tricky place, banks take safety concerns seriously. There are layers of security that every bank offers online. You need to verify your identity to complete any procedure. Options like two-step verification, codes, account details, etc., are provided for safety. 

Meant for tech-savvy people

Banks understand the inclusion of people with different perceptions. Online Banking caters to people from rural areas as well. The user interface and banking processes are simple to understand. Anybody with minimum technical knowledge can quickly grasp it. Hence, you can easily carry out all banking services online without being tech-savvy. 

Limits banking facilities

There is a notion that Digital Banking only means transferring money and paying bills. However, thanks to the Banking app, many options are now viable. You can do a range of activities without visiting the bank. Checking balance statement, opening an account, monitoring Loans, and more gets done online. 

Banking online is an essential step to take. Even banks encourage customers to avail themselves of all the benefits of an online Savings Account. You can carry out banking activities anytime, anywhere. It helps speed up banking activities. You can learn about its fundamentals from banks for clear understanding and ease. These settle quickly with efforts towards adopting the technology.