4 Benefits of NRI Account

Before you open an NRI account, it is crucial to understand the different types of accounts available and what they offer. You can choose between an NRO or NRE account. NRO is a Non-Resident Ordinary (NRO) Account, whereas NRE is a Non-Resident External (NRE) Account. 

An NRO account is helpful for those who have assets and investments, such as securities, in India which generate an income. This includes rent, interest or dividend income, proceeds from the sale of property, among others. An NRO account makes it easier to manage tax as non-resident income may be subject to TDS and double-taxation. The account can also be used to pay for expenses incurred in India or as a means for your family to access funds when required. 

NRE accounts, on the other hand, are beneficial for those who want to save/deposit their foreign income in Indian denomination. The interest earned on an NRE account is exempt from taxation in India and offers greater returns as compared to any other overseas bank account. 

So, let's understand the benefits of having an NRI savings account:

Convenient transfer anytime, anywhere
 

When you have an NRO or NRE account, the biggest benefit you can expect is the easy transfer of funds to and from anywhere in the world. You can easily send the income that you have earned to your NRI account in India anytime you want. Your NRI account also enables you to send money quickly to your loved ones whenever the need arises. Moreover, this amount can easily be accessed from any bank branch in which you hold your NRI account.

At the same time, if you have assets or investments in India, you should be able to repatriate funds for your needs in your country of residence in a swift and secure manner. The ease of transfer and easy account management should be the key factor when deciding on an NRI account. (*Repatriation of balances held in an NRO account are subject to documentation).

Ease of banking
 

An NRI account should assist you right from the word go. This means right from opening the account to using it to manage your finances should be very easy. Most banks now allow the opening of an NRI account without visiting the bank branch in India. So, you should be able to open a bank account seamlessly from wherever you are in the world. All you need to do is fill the required online form and courier the necessary documents to India. Here you can read the list of documents required for NRI account. 

Once the savings account is open, you should also be able to transact smoothly. That give you easy access from across the globe. This puts the power of banking in your hands so you can transfer funds, invest, and much more with just a few clicks.

Dedicated relationship manager
 

We at IDFC FIRST Bank have a dedicated relationship manager mapped for each NRI account holder. Our relationship managers provide a superior banking experience by facilitating your transactions but also understanding your unique needs in-depth and cater to the same. A dedicated relationship manager is essentially your strategic advisor. They can tell you how best to optimize your income and what avenues to look at while investing.

Instant- paperless PIS facility
 

IDFC FIRST Bank is the first in the industry to offer simplified path for NRIs to initiate the step to Invest in Indian Stock Market through PIS route. As for an NRI customer to invest in stocks under the repatriation route, a PIS bank account with a unique permission is mandatory. IDFC FIRST Bank offers online PIS account opening in few steps and provides seamless access to various PIS reports anytime, anywhere.

Best exchange rates
 

Traditionally, transferring money from overseas has been a very expensive and time-consuming affair. High charges and fees combined with volatility makes this a rather cumbersome experience. Considering the volume of transactions, a bank does, a bank can offer competitive exchange rates. So, when opening an NRI account, you need to factor in the exchange rates the bank offers. This is even more crucial if you are transferring money regularly. The best exchange rates can culminate into substantial savings. Moreover, banks also provide direct quotes for more than a greater list of currencies as compared to a standalone money transfer service provider.

Tax benefits
 

NRIs can enjoy several tax benefits through specific accounts like NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) accounts. Interest earned on NRE and FCNR accounts is tax-exempt in India. However, NRO account is taxable as per the income tax guidelines. This can significantly enhance your savings, as your income from these accounts does not attract Indian income tax.

Repatriation benefits
 

Repatriation, or the transfer of funds abroad, is straightforward with NRE and FCNR accounts. Funds in these accounts, along with the interest earned, can be fully repatriated without any restrictions, making it easy to transfer your earnings back to your resident country. For NRO accounts, funds of up to USD 1 million can be transferred in a financial year subject to payment of prevailing taxation.

Interest rates
 

Interest rates on NRI accounts are competitive. IDFC FIRST Bank’s NRO, NRE, and FCNR accounts offer attractive rates to grow your funds rapidly over time. This can be particularly beneficial for you if you are looking to grow your savings in India.

Investment opportunities
 

NRIs have access to a broad range of investment opportunities in India, such as mutual funds, fixed deposits, and equities through IDFC FIRST Bank PIS (Portfolio Investment scheme). NRI accounts also facilitate investments in real estate and government schemes, enabling you to diversify your portfolio and leverage the growing Indian market.

Wrapping up
 

Choosing the right NRI savings bank account is one of the most critical decisions for an NRI. It will ensure how conveniently, cost-effectively, and wisely you can manage, transfer, invest and grow your funds. IDFC FIRST Bank's NRI Savings Account is designed keeping in mind the unique needs of NRIs. It offers tax-exempt interest on NRE savings account, convenient online banking, attractive interest rates on inward remittances, and a top-of-the-line benefits-rich Visa Signature card, without any charges. It lets you earn attractive interest on your bank balance. So, if you are looking to open an NRI savings account, IDFC FIRST Bank can be the right fit for you. Don't wait anymore to experience the best banking services-Open an IDFC FIRST Bank NRI Savings Account today with just a few clicks!

 Click here to get started!