As an NRI, you might not be clear about the various benefits of the accounts available to you. As such, to manage your income and investments, it is essential to open an account with the numerous NRI Benefits in India. Here are five NRI Account benefits that you need to know:
1. Tax Benefits:
Tax benefits is the most important reason for opening an NRI account. While the interest earned on your NRE Saving Account as well the NRE Fixed Deposit is tax-free in India, savings in the NRO Account are charged at a rate of 30%.
NRE Fixed Deposits are the most secure and high yielding investment options that are available only to NRIs.
2. Repatriation Advantages:
Another important advantage of NRI Accounts is repatriation benefits. Both NRO and NRE Saving Accounts allow smooth movement of funds because you can repatriate both, the principal and interest abroad. Funds in NRE Accounts are fully and freely repatriable. However, funds in your NRO Account are repatriable only to a certain limit.
3. Minimal Balance Requirement:
You don’t need to maintain high balances in your NRE and NRO Accounts. Many banks have dropped their minimum balance requirement significantly. Nowadays, most banks require just Rs. 10,000 as a minimum balance.
4. High-interest rate:
Both NRE Saving Accounts and NRE Fixed Deposits, along with NRO Accounts offer high-interest-rates. Banks like HDFC Bank gives you 4% per annum.
The good part is that the interest rate is calculated on daily closing balance and interest is paid half-yearly in the months of June and December respectively. This may differ depending upon the bank, so it is best to check with your bank in case of any doubt.
5. Convenience benefits:
One more advantage of NRE and NRO Accounts is convenience. Opening an NRI Account is easy. Most banks allow you to open NRE Accounts online. All you need to do is fill a form online, take a printout, attach the self-attested copy of the required documents and courier it to the bank in India.
Know more about the different types of NRI Accounts here.
Courtesty: HDFC Bank