7 Aspects Of NRE Accounts You Should Know About

Moving abroad invites a host of changes. Besides the obvious lifestyle ones, it also mandates changes in your banking ways. This implies swapping your old bank account to conduct everyday transactions. You must either opt for a new one with a foreign banking partner. You could also convert your old account into a Non-Indian Resident Account. An NRI Account is meant explicitly for NRIs.

It allows them to park their foreign earnings safely. It facilitates their banking and investment needs once they move away from India. Such an account comes in three distinctive types. They are as follows:

1. Non-Resident External Account
2. Non-Resident Ordinary Account
3. Foreign Currency Non-Resident Account

Out of these, we will cover the essential aspects of an NRE Account. The following points explain it:

1. Rupee denominated

An NRE Account is Rupee denominated. This means that it maintains your deposits in Indian Rupees. The function stays consistent across all types of such an account. For example, whether you have an NRE Current or NRE Savings Account, your funds will be retained in Indian Rupees.

2. Repatriability

This type of account offers you full repatriability. You can freely transfer the funds in your account to another country. Thus, many NRIs with financially dependent families open an NRE Account. It allows them to send money to India without any hassles.

3. Fund maintenance

You can contain funds received from another country in your NRE Account. The same goes for transfers obtained from another NRE/FCNR Account maintained in India. Also, it is possible to transfer money from your NRE Account to an NRO Account. The process involves no restrictions.

4. Joint facility

At times, you might want to open an account with a family member living overseas. Considering this, an NRE Bank Account offers you a joint facility. You are allowed to hold the account jointly with another individual. However, the co-holder must be an NRI. Else, you cannot avail of this facility.

5. Conversion

Many Indians move overseas for a brief period. When they come back, they get the option of converting this account into a regular resident account. The procedure for this conversion, however, varies from bank to bank.

6. Taxation

The most appealing aspect of an NRE Account is its taxation policy. Interest earned on deposits in this account is exempt from taxes. This way, the NRI can optimise their interest earnings without any worries.

7. Transfer rules

A resident power of attorney cannot open an NRE Account on the NRI’s behalf. However, they can make local rupee payments and transfers on the NRI’s behalf. There is no imposition on such transactions.

What You Should Know About Mutual Funds Portfolio

Investing in Mutual Funds is akin to building a house. There are numerous tactics, tools, and strategies, but each includes fundamental characteristics. To create the ideal Mutual Fund portfolio, you must go beyond the ancient saying, 'do not put all your eggs in one basket.' A long-lasting building necessitates a clever design, a solid foundation, and a simple mix. That is precisely what Mutual Fund portfolios are about.

Meaning

Fund managers professionally manage your Mutual Funds. They collect money from a group of individuals with similar financial goals and invest in Stocks, Bonds, Money Market Instruments, and other securities. After deducting expenses and taxes, the income or profits are dispersed proportionately among investors. Mutual Funds are a collection of money that many contribute.

Mutual Funds are suitable for those who do not have significant quantities to invest in or time to research the market. Professional fund managers invest the money collected in Mutual Funds according to the scheme's aim. In exchange, the fund company deducts a small fee. Mutual Fund fees are regulated and subject to certain limits set by the Securities and Exchange Board of India.

How does the portfolio work?

A Mutual Fund Portfolio includes investments in asset classes and securities such as Equity, Fixed Income, and other routes meticulously built and maintained by fund managers by the fund's objectives. Investment in such portfolios provides retail investors access to high-quality, professionally managed investments.  It invests in financial instruments such as Stocks, Bonds, Debentures, Government Securities, and other assets.

A Mutual fund Portfolio is a collection of such investments in diverse assets established using money collected from multiple investors.  The fund's purpose is communicated in advance, and an expert manager ensures that the fund adheres to the objective. Retail investors can accumulate wealth over time by investing in portfolios that match their risk tolerance and financial goals.

Reasons to build a portfolio

• You do not wish to pay any fees or charges.
• You cannot locate a Fund scheme that adheres to your investment principles.
• The Mutual Fund you want to invest in has an excessive expense ratio, firms you despise or weigh on specific industries or companies that are too high or low.
• You also want to invest in Bonds but do not wish to pay the additional fees and expenses associated with fixed income and Balanced Funds.
• You can adjust your investments as you age and as your goals change.

Conclusion

Combining various types of Mutual Funds creates a balanced portfolio. One core fund can serve as the basis, with the remainder funded from multiple categories. Knowing your risk tolerance influences the funds you select. Moving ahead with a long-term perspective is always a good idea.

Personal Loan Application Process: A Step-By-Step Guide

Personal Loans are a great financing option to meet several financial requirements. Since they are multiple purpose Loans, you can use them for anything: funding education plans, home renovation, planning your dream wedding, or even debt consolidation. Many prefer Personal Loans because of their hassle-free application and approval process.

Understanding the various steps involved is crucial if you plan to apply for one. Here is a detailed overview of the approval process.

Checking your eligibility: Before starting your application process, determine your eligibility. Using a Personal Loan eligibility calculator can be helpful here. It gives a clear picture of where you stand concerning the Loan eligibility and the amount you are eligible to apply for. 

Application process: Once you have checked your Loan eligibility, the next thing to do is make an application. There are two ways to apply for the Loan; you can either do so online or visit the nearest bank branch to complete the procedure. Applying for a Personal Loan online is simple and convenient. You can apply for a Loan online by logging into the bank’s website. A working computer and stable internet connection is needed for the request.

Documentation: After filling out the application form, upload certain documents on the bank’s portal. Also, upload the KYC documents, income proofs, tax filings, and other papers. You can find the checklist on the bank’s website. So, check it out.

Verification: The bank verifies all your details on completing the Bank Personal Loan application process. They check its accuracy. Sometimes, the bank would visit your place of employment for verification purposes, so be prepared.

Approval and disbursement: Post the verification process, if the bank is satisfied, they approve the Personal Loan request right away. The process becomes more time-saving and simple if you are eligible for a pre-approved Loan. On your Loan request being approved, you can expect funds to be credited to your Savings Account within one or two working days. In the case of a pre-approved Loan, the funds get credited to your account instantly.

Usually, the entire Loan process and approval takes up to four to five working days. However, the timeline can be prolonged if your documents are not in place, and you need not meet eligibility for Personal Loan. Applying at the earliest possible is best, considering delays in the Loan approval process. This ensures that you are not running around to arrange for funds during trying times.

Do not forget to maintain an excellent financial profile and have all necessary documents handy. 

What Are The Notable Features Of Banking Apps?

The customers of today do not like waiting. They want their needs met and issues resolved instantly. Banking requirements are no exception. Owing to the emerging preference, banks and financial institutions have introduced apps into the picture. Not only are these apps convenient, but they are also quite efficient. But to reap the benefits of any Banking app entirely, you should know about its features.

Only then can you use it to your advantage effectively. Else, it might be of no substantial use to you. So here are the most notable ones for your reference:

1. Security & fraud alerts

Despite being easily accessible, Internet Banking facilities like Banking apps are incredibly safe. They operate on advanced security features that go beyond simple log-in requirements. They are embedded with multi-factor authentication that ensures advanced level protection. This way, hackers cannot get access to your details whatsoever. If there is an unsuccessful log-in attempt from another device, you get notified.

You also get fraud alerts; at times, bank officials might contact you to verify suspicious transactions made through your online Bank Account. Here are some things you can do to take your security up a notch:

• Do not share your log-in credentials with anyone
• Change your PINs and passwords frequently
• Do not create obvious PINs and passwords. For example, your birth date, wedding anniversary date, etc.
• Create strong passwords to be on the safe side

Note that these come in handy while availing of any Online Banking facility. It is always good to take precautionary measures on your end.

2. QR payments

Nowadays, QR payments have become significantly popular. They are contactless payment facilities performed by scanning a QR code from a Mobile Banking app. You must go to your app and click the ‘Scan QR code’ option. Then, the app will open your camera to scan the code. Once that is done, you must enter the amount and your PIN to process the payment.

3. Cheque deposit facility

Earlier, you had to visit the bank to deposit cheques. But nowadays, you need not even step out of your house to do so. With an Android Banking app, this task becomes simpler. You need to scan the front and back sides of the cheque and follow the instructions given by the app.

4. Bill payments

Most apps provide you with options to pay your utility bills. For example, if you need to pay your electricity bill, you will find the option ‘pay electricity bill’ in the app.