How to maximise money-saving potential with NRI banking products

NRI banking products provide the investment opportunity for diversification to enhance your portfolio’s return potential. But do you know which NRI banking products are available for saving money?

Let’s explore.

Types of investment options that help NRIs in saving money
 

Whether you are looking for fixed-income avenues or want to invest in the financial markets, you can easily find an investment opportunity that helps in saving money. Here are some options that you can choose from -

1. NRI savings accounts
 

NRI savings accounts are the most important tools for exploring investment avenues in India. They help you remit funds from abroad, invest them in India, and receive interest income or capital gains from the sale of investments. Besides this, an NRI savings accounts also help you -

a.  Earn interest income on the account balance

b.  Create a liquid fund for emergencies

d. Manage your income and expenses in India

You can pick from two types of NRI accounts -

a.  Non-Resident Ordinary (NRO) account - This account is meant to credit the income earned in India.

b. Non-Resident External (NRE) account - This account is intended to credit income earned abroad.

2. NRI fixed deposits (FDs)

If you want to invest a lump sum of money for a specific period and earn a guaranteed return, NRI FD can be a good choice. NRI FDs help you earn risk-free returns on your investments.

There are two FD options for you -

a. NRO or NRE FD - This FD is denominated in Indian Rupee (INR).

b. Foreign Currency Non-Resident (FCNR) account - This account offers FDs denominated in foreign currency.

3. Mutual funds
 

Mutual funds offer market-linked returns, expert fund management, and a readymade diversified portfolio. You can choose from different types of funds based on your risk appetite and investment preference.

Some of the benefits of investing in mutual funds include the following -

a. Easy liquidity

b. Tax benefit under Section 80C if you invest in Equity Linked Saving Scheme (ELSS)

c. An opportunity to create an inflation-adjusted portfolio

d. The benefit of disciplined investment with Systematic Investment Plans (SIPs)

e. Complete transparency in fund management and underlying charges

4. Portfolio Investment Scheme (PIS)

If you are looking to invest in securities listed on the Indian stock market, you can choose to open a PIS account. You can open the account on a repatriation basis and invest in shares, bonds, and other securities.

The benefits of PIS include the following -

a. Ability to invest in the Indian stock market

b. Easy liquidity

c. You can easily transfer the profits earned back to your resident country if you choose to open a repatriation-based PIS account

d. Easy and online investment platform

What’s the difference between different NRI banking products?
 

Here’s a table comparing the different investment solutions to help you find the right avenues for saving money and growing your portfolio -

Why invest in NRI banking products?
 

NRI banking products not only make financial planning easy but also offer the following benefits -

1. They help diversify your portfolio beyond borders
2. You can enjoy tax benefits on interest earned from NRE savings accounts, NRE and FCNR deposits, and also ELSS investments
3. You can plan for your financial goals
4. You can create assets back home for your golden years

How do you choose the right NRI banking products?
 

Given the array of products available, it is important to choose solutions that -

1. Match your financial goals
2. Align with your investment strategy
3. Are suitable for your risk appetite
4. Offer the liquidity you need

After choosing products based on your financial needs, here are some factors to consider when investing -

1. Know the fund transfer process
 

It is important to understand the transfer process for moving funds from abroad to India to start investing and repatriating the returns.

Look for minimal fund transfer costs to reduce the added expense and maximise the money-saving potential of your investment.

2. Understand the impact of exchange rates
 

Exchange rates are an important aspect of currency conversion. Whether you convert foreign currency into INR or vice versa, exchange rates will affect the conversion.

Choose a bank which offers competitive exchange rates, like IDFC FIRST Bank, to minimise conversion losses and maximise saving money.

3. Check for repatriation
 

Different products have different repatriation rules. Choose products that match your repatriation needs. For instance, an NRO bank account is suitable if you want your investment to stay in India. However, choose NRE, FCNR, or PIS accounts if repatriation is needed.

4. Know the tax laws
 

Knowledge of the tax laws can help minimise tax liability for maximum money-saving potential. As Indian tax laws tend to change over time, keeping abreast of the latest updates is important.

4. Check the customer service channels
 

When managing investments from overseas, you might encounter different types of challenges. A dedicated customer support channel can help you navigate these challenges for seamless financial management.

Save right with IDFC FIRST Bank NRI Banking Services
 

IDFC FIRST Bank offers a range of NRI banking products designed to help you maximise your money-saving potential. From competitive savings accounts to hassle-free FDs and one-touch PIS accounts, the bank offers everything.

Explore IDFC FIRST Bank NRI Banking Services and enjoy -

1. Zero charges on inward remittances
2. Up to 7.25% p.a. interest rates on savings accounts
3. Hassle-free remittance services
4. Customisable investment options
5. Dedicated relationship manager and much more

Know how to save money and choose the best NRI banking products that suit your financial goals with IDFC FIRST Bank. Make the most of your earnings abroad to ensure that your wealth works harder for you, no matter where you are.