The benefit of being an NRI comes with its own NRI Savings Account. Access to this type of account enables deposition of cash in the Indian Rupee [INR] denomination.
Who is an NRI?
According to the Indian Government, an NRI [Non-Resident Indian] is an individual that has not been in the country for the year [from April to March] and whose main cause of employment and income is abroad.
Being an NRI, you will be eligible to open an NRI [Non-Residential External] account and this enables the NRI account holder to operate in Indian currency.
Benefits of having an NRI Savings Account
One of the most important motives and gain of opening an NRE account. Interest earned on the NRE savings account as well on NRE fixed deposit is completely exempted from tax in India. Moreover, they are not added up even in your taxable earnings; in the off chance, you have some income in India.
One more main benefit of NRE account is repatriation advantages. NRE savings account allows trouble-free movement of cash because it is possible to repatriate both interest and principle overseas. Cash amounts in NRE accounts are completely and fully repatriable.
Low Balance required
Due to growing competition among public and private sector banks e.g. HDFC, SBI, ICICI, Axis Bank, and YES Bank, the lowest balance required has declined appreciably. Nowadays many banks including HDFC, ICICI and Kotak require around 10,000 INR as the minimum balance.
Another advantage of NRE accounts is handiness. It’s easy to open an NRE account. The majority of the banks permit you to open NRE account online through the Internet. You just require to fill an online form, take a printout, and attach the self-attested print of required documents and send to the bank in India.
An extra key advantage of having NRE account is that you can jointly open it with an another NRI holder e.g. your partner or your children. Moreover, it is one of the greatest ways to handle your cash as your partner can also operate the same bank account along with you.
Because many Indian banks presently have a universal offering, opening an NRI savings account allows them to choose elite offers providing to your needs both in India plus overseas.
NRI savings bank account typically comes with an International Debit card. This provides you with the exclusive convenience advantage of shopping globally, buying life insurance, booking air tickets online, and withdrawing cash abroad.
The Bottom Line
Adhering to the numerous benefits that come along with an NRI Savings bank account, if an individual who is an NRI does not avail the benefits of having the NRE Account, a lot of associated perks could be probably neglected and he/she might be giving up on a brilliant opportunity.