The advantage of being an NRI comes with its own NRI Savings Account, which we would be talking about here. Access to this type of account allows deposition of cash in the Indian Rupee [INR] denomination.
Who is an NRI?
According to the Indian Government, an NRI [Non-Resident Indian] is a person that has not been in the country for the year [April to March] and whose main source of employment and income is abroad.
Being an NRI, you will be allowed to open an NRI [Non-Residential External] account; this enables the account holder to operate in Indian currency.
What are the advantages of having an NRI Savings Account?
- Tax Advantages
This is the most significant motive and gain of opening an NRE account. Interest earned on the NRE saving account as well on NRE fixed deposit is absolutely exempted from tax in India. They are not added up even in your taxable profits; in the off chance you have some revenue in India.
- Repatriation Advantages
One more main advantage of NRE account is repatriation advantages. NRE saving account allows trouble-free movement of cash because it is possible to repatriate both interest and principle overseas. Cash amounts in NRE accounts are fully and completely repatriable.
- Low Balance required
Due to augmenting rivalry among public and private sector banks e.g. SBI, ICICI, HDFC, Axis Bank, and YESBANK, the lowest balance required has dropped appreciably. Nowadays many banks including ICIC, HDFC, and Kotak require just 10,000 INR as the least balance.
- Convenience advantages
Another advantage of NRE accounts is handiness. It’s simple to open an NRE account. The majority of the banks allow you to open NRE account online via the Internet. You just need to fill a form online, take a printout, and affix the self-attested print of necessary papers and send to the bank in India.
- Joint holding
An extra key advantage of NRE account is that you can jointly open it with an additional NRI e.g. your partner or your children. It’s one of the greatest ways to handle your cash as your collaborator can operate along with you.
- NRI Advantage
Because many Indian banks now have a universal offering, opening an NRI account allows them to select elite offers catering to your needs both in India and overseas.
- Accessibility Advantage
NRI saving account typically comes with International Debit card. This gives you the exclusive convenience benefit of shopping globally, booking air tickets online, buying life insurance, and withdrawing cash abroad.
The Bottom Line
Adhering to the very many benefits that come along with an NRI Savings account, if a person who is an NRI does not avail the advantages of owning the NRE Account, a lot of associated perks could be possibly neglected and he/she might be giving up on a brilliant opportunity.