Benefits Of NRE Accounts To Note Down

If you relocate overseas, make sure to open a Non-Resident Indian Account. The Non–Resident External or NRE Account is a type that allows you to deposit foreign earnings and remit funds instantly. Following are the benefits you should make the most of:

Repatriate funds with ease

If you are asked to list your banking concerns as an NRI, Remittance will be on the top. There is an influx of immigrants worldwide. Due to this, the number of Remittances done daily has also increased. While you live abroad, you may wish to take care of your family’s daily expenses or help a loved one during emergencies. This is possible with the help of an NRE Account.

You can initiate a Remittance request from your NRE Account using Internet Banking. Leading banks allow NRE Account holders to remit money at preferential exchange rates and zero processing fees.

Secures money

Your NRE Account deposits attract a competitive interest rate. Hence, an NRE Account is also considered a good investment vehicle. Secure your funds by opening an NRE Savings Account. The interest rate offered varies for each bank. Hence, it is best to research the market and opt for a bank with the highest interest rate. The interest returns further vary depending on your bank balance.

A higher bank balance translates to higher interest gains. Always try to maintain a higher account balance to maximise your savings.

Safeguards from heavy tax implications

Opting for an NRE Bank Account is ideal to avoid heavy tax implications. Unlike other Bank Account, you need not pay interest gains taxes on your NRE Savings Account. However, you need to pay taxes if you transfer funds from an NRE to an NRO Account. Besides its tax efficiency, NRE Accounts are widely popular for their high liquidity.

The principal sum and interest gains are fully repatriable. There is no upper limit to funds you can repatriate to your home country financially.

Make profitable investments

Are you someone who holds an interest in the Indian Stock Market? Then open an NRE Account and invest in the markets and other investment vehicles like Mutual Funds and Fixed Deposits. Link your NRE Account to your Demat Account. This way, you can trade shares easily.  Another advantage is that banks offer NRI financial services to their account holder.

This service allows you to access market research reports and receive expert opinions on investments.

Joint account holding

You can now hold an NRE Account with another NRI or Indian resident. Note that this is only possible on a former or survivor basis. This ensures that your loved one’s financial requirements are met even in your absence.