Types of NRI FDs and their respective features

 When you move to another country, your resident Fixed Deposit Account becomes invalid. You are expected to convert it into a Non-Resident Indian or NRI Fixed Deposit instead. This rule is laid out by the Foreign Exchange Management guidelines and hence, must be exercised once you shift overseas.  However, an NRI Deposit also comes in different types.

In such a case, which one should you opt for? To understand this, it is essential to know about these types and their respective features. So, here is a quick guide on that.

Non-Resident External FD

An NRE FD is ideal for global Indians earning in foreign currency. The following are some of its notable features:

• It automatically converts the holder’s deposits into Indian Rupees. It also maintains these funds in the same manner throughout the deposit tenure.
• This FD Account offers full repatriation. It enables the holder to withdraw the principal amount and the interest earned.
• The interest earned through an NRE FD is exempt from taxes. Therefore, it is suitable for individuals who wish to enjoy tax benefits.

Non-Resident Ordinary FD

An NRO FD is apt for individuals who earn income from India. Here are some of its features for your understanding.

• If you have moved to another country and in your absence, you put your house on rent, the rent money will be the income you earn from India. In this case, an NRO FD will facilitate such transactions.
• This NRI FD also allows joint holdings. You can open it with an Indian resident or another NRI.

Foreign Currency Non-Resident Deposit Account

An FCNR FD lets you deposit funds in freely convertible currencies. It serves best individuals who keep moving to different countries for work. It allows them to maintain the deposited funds in the original foreign currency. The following are the currencies accepted in this type of NRI Account:

• US Dollar
• Canadian Dollar
• Great Britain Pound
• Australian Dollar
• Canadian Dollar
• Japanese Yen
• Singapore Dollar

These currencies’ minimum and maximum deposit amounts vary from bank to bank.

Parameters to remember when selecting an NRI FD

Before you open an NRI Fixed Deposit Account, keep these in mind:

Your financial objectives

Be clear about your financial goals beforehand. This will assist you in picking the right kind of NRI FD.

Taxation policy

Understand the taxation policy of each NRI FD. It plays a significant role in your total investment. For example, deposits made in an NRE Account are exempt from taxes. The same applies to an NRE FD.

Duration of your deposit

Each type of NRI FD has different minimum and maximum durations. For example, the minimum duration of an NRE FD is one year. Hence, it is essential to be mindful of this.

The Functioning of Preferred Banking Explained

 We all need money to fulfil our needs and build wealth. Banks have transformed their services by using online platforms and reaching out to every customer worldwide. Earlier, you stood in queues for any banking activity. The world of Preferred Banking is rich and varied, offering solutions to high-net-worth or HNI individuals regarding investment, banking, tax management, etc.

It offers personalised financial services to clients through experienced wealth managers and professionals. They can explore greater financial prospects concerning investment, such as real estate and hedge funds.

How does it work?

Also called Premium Accounts, they are customisable. You can open it and get personalised assistance like a dedicated relationship manager to oversee all your accounts. The premium banker performs complex tasks from your end like arranging Loans and setting up recurring payment facilities for your bills.

Services offered

Plenty of banks offer private services to assist HNI people in growing their assets. Clients with such accounts get perks and personalised benefits like instant access to the employees working on their accounts. Though the services are not significantly different from traditional accounts, they bring a customised approach:

Deposit accounts

You can derive enormous benefits from your account as a Priority Banking customer. You get preferential pricing over standard account holders and personalised assistance.

Investment Planning

While they are readily associated with Wealth Management, you can benefit from investment advice and solutions from your private banker. Your assistant can create customised investment strategies and portfolios to achieve your goals after opening the account.

Real estate financing

You can capitalise upon real estate and advice from private banks can offer you significant Loans for primary or secondary homes.

Mortgage lending

Private banks also offer specialised Loans for HNIs to help finance the purchase of amenities like an aircraft, yacht, etc. You also benefit from flexible lines of credit.

Tax planning

You can plan your taxes from your banker due to a fluent understanding of existing laws and prospective legislative changes.

Estate planning

Managing wealth may seem challenging for HNIs who maintain a sharp focus on their careers and finances. With Preferred Account, you get estate planning to arrange seamless wealth transfers to future generations. This way, you can invest in greater avenues and reap benefits.

Tailored wealth solutions

You also get access to a wide range of wealth solutions like Mutual Funds, Bonds, PMS, Alternative Investment Funds, and other Structured Products with the latest market insights and analyses across the world.

Conclusion

Private Banking and other services are available to meet customers' needs, from Saving Accounts, Deposits, Loans, Credit Cards, and more. These services offer better support to the customer’s needs on financial activities.

Enjoy Access to Money Market Mutual Funds With Priority Banking

 A Premium or Priority Banking Account transforms routine banking for you. It offers an array of exclusive banking and lifestyle privileges. It matches your lifestyle aspirations and growing financial needs. It also gives access to several sophisticated wealth solutions like a Money Market Fund that grows your money in the long run.

What are these funds?

Money Market Funds invest their corpus in short-term debt instruments. This allows them to provide their investors with probable returns over the short term. These are meant for clients with a low-risk appetite. This also benefits investors who want to park their surplus funds in Mutual Funds for the short term instead of keeping the money lying idle in their Savings Account.

What makes these funds lucrative?

When you invest in Money Market Fund, you can benefit from the following features:

Liquidity

These funds have higher liquidity than other Mutual Funds. As a result, they easily allow you to move your currency in and out of the investments. Additionally, when you want to retrieve the current value of the units you invested, you have two options:

• Redeem a part of the investment
• Recover the entire amount

Lower risks

These funds involve lower risks than other Mutual Funds. However, returns may not be as huge as other high-risk investments.

Well-regulated

All Mutual Funds are regulated by the Securities and Exchange Board of India. Hence, a Money Market Mutual Fund follows the guidelines laid by the regulator, has a transparent process, and protects the interests of its investors. You also check your portfolio every month as mandated by SEBI.

How does Priority Banking help?

When you open a Premium Saving Account, you not only utilise sophisticated wealth solutions like a Money Market Fund but also get the latest market insights and all the updates from domestic and international markets that help you make an informed decision. Some banks also provide their Premium Account holders with detailed market analysis from the globe before anyone else.

Customers may benefit from detailed factsheets and information on the top-quartile Mutual Funds.

Things to remember

Remember the following aspects before investing:

• Always determine your risk appetite, investment horizon, and financial goals before choosing a Mutual Fund.
• Before committing, seek advice from a professional advisor regarding the suitability of a product if you are unsure. Access to a Premium Account may give the option of a thorough risk review. This may also allow you to build a portfolio suitable to your needs.
• Remember to read all relevant offer documents which include risk disclosures, etc., before picking a Money Market scheme.

Is Internet Banking safe?

 Our current world is rapidly evolving into a digital one. Do you recall the last time you went to the bank to open an account or stood in line to make a withdrawal at a bank branch? The influence of technological breakthroughs has radically transformed the banking industry. Let us understand Digital Banking better for this purpose.  

What is Digital Banking?

Using digital platforms like the

When your bank adheres to security measures and you are aware of how to recognise potential security issues, Online Banking is a convenient way to handle your finances. However, concerns about them are commonly voiced. Are transactions made online secure? You need not worry. You should know that all online transactions and information exchanges are secure. Online Banking is safer than you might assume for the following reasons:

Two-factor authentication

You may have noticed that the chosen bank asks you to set up two-factor authentication before performing an online transaction. To confirm the transaction, you are sent an OTP at the first level.

SMS notifications

This two-factor authentication protects both the transaction's integrity and your identity.

Advanced encryption

By utilising cutting-edge digital technology and an incredibly safe, encrypted medium, your transactions are guaranteed secure from the origin to the destination. It also ensures that hackers, who use ransomware, cannot access your data.

Device authentication

Banks need device authentication and a four- or six-Personal Identification Number on the Banking app to confirm your identity and determine whether it matches the currently available records.

Safe practices followed

You need to follow healthy behaviours for a safe experience Internet Banking:

• Never divulge your app's pin, password, or user name.
• For secure banking, enable multi-factor authentication and fingerprint locking.
• Never record your credentials on paper as anyone can read them.
• When finished checking account balances or engaging in other banking activities, always log out of the application.
• Even if a bank representative asks for information like your ATM PIN, never give out your personal information to anyone. Banks never request them.
• Any unusual banking activity should be reported instantly to the bank.
• Turn off your Wi-Fi and data immediately if you believe you are a victim of fraud.
• If a fraudulent transaction happens, immediately block your Card or Saving Account.
• Never download third-party apps or click on links as these can compromise your phone's security.
• Due to the time and effort it saves, E-Banking is an effective strategy. You can practically complete every bank-related task through the assistance of such services. It minimises your reliance on others and builds financial control.

Conclusion

Online Banking is secure if you take reasonable precautions to safeguard your money. Banks also make significant investments for the safety of their customers by continuously looking out for possible fraudsters, online thieves, and hackers. This guarantees that you are shielded from all online accidents when you open an account online.

 

web and internet-enabled devices like mobile phones and conventional banking is possible through Digital Banking. Here, you get year-round access to practically all financial services, regardless of statutory or bank holidays. You need not make bank visits frequently.

Features

You can carry out numerous banking transactions using Digital Banking services. The most notable ones are:

Review account statements and balances

You can check your account balance anytime by logging into your Internet Banking account. You can check the recent transactions or download older statements.

Smooth fund transfers

You can transfer money between banks that are in the same or separate groups. Additionally, you can start international fund transactions.

Buy chequebooks and cards

The ability to order fresh chequebooks and bank cards is another benefit of Online Banking. Applying for primary and supplementary Debit and Credit Cards online is quick and easy.

Paying bills

You can set up instructions for automatic payments for utility bills, including electricity, telephone, gas, and property tax. Additionally, you can pay Credit Card dues, Loan repayments, and recharge phone and DTH through Savings Account online.

Open online account

You can open Term Deposits or Bank Accounts through Online Banking. You can select the term deposit type and duration that suits you and earns interest higher than those offered on Savings Accounts.

Request Loans

Through the Banking app, you can apply for numerous Loans. Before applying, you can also get all the information you need regarding the Loan.

Security

Banks take several steps to guarantee your experience securing Online Banking. The online systems include different levels of security measures including multi-factor authentication, virtual keyboards, spending caps, and session timeouts. To protect your account from fraud, you also get a Special Mention Account and email notifications the moment you log in.

Make purchases

Through Digital Banking, you can invest in Bonds, shares, Mutual Funds, and other market items. For immediate credit and debit of funds, you can also link your Bank Account to your investments.

Conclusion 

The best innovation in the banking and financial sectors is Digital Banking in India. You only need a safe and reliable internet connection for it to function.

Understanding Digital Banking and its features

 Our current world is rapidly evolving into a digital one. Do you recall the last time you went to the bank to open an account or stood in line to make a withdrawal at a bank branch? The influence of technological breakthroughs has radically transformed the banking industry. Let us understand Digital Banking better for this purpose.  

What is Digital Banking?

Using digital platforms like the web and internet-enabled devices like mobile phones and conventional banking is possible through Digital Banking. Here, you get year-round access to practically all financial services, regardless of statutory or bank holidays. You need not make bank visits frequently.

Features

You can carry out numerous banking transactions using Digital Banking services. The most notable ones are:

Review account statements and balances

You can check your account balance anytime by logging into your Internet Banking account. You can check the recent transactions or download older statements.

Smooth fund transfers

You can transfer money between banks that are in the same or separate groups. Additionally, you can start international fund transactions.

Buy chequebooks and cards

The ability to order fresh chequebooks and bank cards is another benefit of Online Banking. Applying for primary and supplementary Debit and Credit Cards online is quick and easy.

Paying bills

You can set up instructions for automatic payments for utility bills, including electricity, telephone, gas, and property tax. Additionally, you can pay Credit Card dues, Loan repayments, and recharge phone and DTH through Savings Account online.

Open online account

You can open Term Deposits or Bank Accounts through Online Banking. You can select the term deposit type and duration that suits you and earns interest higher than those offered on Savings Accounts.

Request Loans

Through the Banking app, you can apply for numerous Loans. Before applying, you can also get all the information you need regarding the Loan.

Security

Banks take several steps to guarantee your experience securing Online Banking. The online systems include different levels of security measures including multi-factor authentication, virtual keyboards, spending caps, and session timeouts. To protect your account from fraud, you also get a Special Mention Account and email notifications the moment you log in.

Make purchases

Through Digital Banking, you can invest in Bonds, shares, Mutual Funds, and other market items. For immediate credit and debit of funds, you can also link your Bank Account to your investments.

Conclusion

The best innovation in the banking and financial sectors is Digital Banking in India. You only need a safe and reliable internet connection for it to function.

What are the advantages of choosing Digital Banking?

 Our hectic lives make every day a battle against the clock, so we hunt for time-saving opportunities everywhere. Hence, Online Banking comes to the rescue. Although technology is accessible in practically all professions and industries, the banking industry has found its existence to be a game-changer. Almost all banking services are now available online, which has completely changed the way we perform bank transactions.

Online Banking has reduced the frequency of trips to the bank for daily errands. A quick list of its benefits includes:

Organised statements and transaction history

Before Internet Banking happened, tracking transactions and bank balances were difficult. However, checking past transactions and unpaid balances is now relatively simple thanks to Online Banking. Under the Transaction History section, you find transactions and fund transfers done through Net Banking along with important details.

Monitor spendings

Your Digital Banking software lets you track all your spending. For instance, a Banking app allows you to view and control your upcoming purchases and your previous purchases. To not forget a bill payment, you can even set up auto-debit facilities.

Saves time

The other advantage of Online Banking is it saves time. Being able to manage your finances through them without needing to visit a branch during business hours gets work done instantly.

Find the closest ATM

Although many are unaware of it, this facility does exist. The closest ATM and branch of your bank can both be found via Mobile Banking. If you need to withdraw money immediately, this option can be helpful, especially if you are in an unfamiliar city or neighbourhood.

Accessible 24/7

Circumstances concerning money will not bother you during emergencies if you do Digital Banking. Unlike a bank branch, your bank is always accessible through apps. Money transfers are hassle-free and possible anytime, anywhere. You save time and money by doing this.

Safe online transactions

Since money and private information are involved, Online Banking is entirely safe. Defend your account from commercial identity theft by downloading the right Banking apps. Online banks use security features like firewalls, anti-virus software, card security numbers, secure encryption sites, login IDs and passwords for this. Due to the extensive development of computers and technology, Internet Banking is now standard practice.

Conclusion

Online Banking is a service that every customer seeks. To guarantee that your account is always secure, remember to adhere to the appropriate security precautions. You can experience flawless Online Banking by opening a Savings Account online today!