5 Reasons to open an NRI account while working overseas

Every year a large group of Indians migrate overseas. According to a report, in 2022 about 13 lakh individuals, comprising both students and working professionals have left India for brighter prospects abroad.*

For anyone taking up a job overseas or going for higher education, an important item on your to-do list should be to open an NRI account. It allows you to leverage several salient features, such as tax exemption, higher interest rates, and much more. 

Let us look at how to open an NRI account and understand its underlying benefits. 

NRI banking in India
 

The banking and investment needs of a Non-resident Indian (NRI) or a Person of Indian Origin (PIO) differ from that of a resident Indian. NRI banking takes care of these unique needs. If you are or are going to become an NRI, you should open an NRI account with an RBI-authorised bank or financial institution. 

Here are the major categories of NRI bank accounts that you can open in India - 

1. Non-Resident External (NRE) account -
 

You can easily transfer your overseas earnings to an NRE bank account in India. It is rupee-denominated in the form of savings, current, fixed deposit or recurring deposit accounts. 

With the IDFC FIRST Bank NRE Savings Account, you get - 

• 100% liquidity with remote banking that is operable from anywhere in the world at any time
• A daily purchase limit of Rs 6 lakh, daily ATM withdrawal limit of Rs 2 lakh, personal accident cover of Rs 35 lakh and air accident insurance of Rs 1 crore
• With the IDFC FIRST Bank NRE FD Account, you can park your overseas income in India and enjoy attractive interest rates

2. Non-Resident Ordinary (NRO) account -
 

This account is for depositing Indian income and your income accruing or arising outside India. You can convert your existing bank account into an NRO savings account and jointly operate it with a resident Indian on former or survivor basis.

With the IDFC FIRST Bank NRO Savings Account, you will enjoy monthly interest credits and complete digital access to your account worldwide, 24X7. 

If you want to invest your Indian income in long-term deposits, opt for the IDFC FIRST Bank NRO Deposit Account. Funds of up to $1 million can be repatriated from this account in a financial year. Park your income in this account for anywhere between seven days to 10 years and enjoy higher interest rates on your income.

3. Foreign Currency Non-Resident (FCNR) account -
 

If you want to open a term deposit account in international currencies for flexible maturity period options, you can open an FCNR account. With the IDFC FIRST Bank FCNR Deposit Account, you can enjoy high-interest income on your foreign currency deposits and NRI tax benefits.

Why open an NRI account
 

NRIs often have resident Indian family members and may have income sources, properties, and assets in the country. If you have been a resident Indian until recently, it is likely that you would have an active presence in India. To balance these along with your overseas income seamlessly, it is essential to open an NRI account. 

The benefits of opening an NRI saving account while working overseas
 

• Tax benefits for NRIs - You can enjoy tax exemption on your income from an NRE bank account, NRE FD, or FCNR deposit account.
• Easy access - Seamless remote banking is offered by IDFC FIRST Bank and others to ensure you always have easy access to your account. Repatriation from these accounts is also easy. NRE bank account principal and interest amount can be freely withdrawn from any part of the world. Whereas those with an NRO account can repatriate in overseas account after payment of applicable taxes.
• Convenience of online banking - You can open an NRI account through a fully digital process. Similarly, you can operate your NRI account from anywhere in the world, anytime. The IDFC FIRST Bank Internet Banking platform and mobile banking app makes sure you enjoy every bit of convenience that modern digital banking offers.
• Higher interest rates - When you open an NRI account, you get a higher interest rate than regular savings accounts in India.
• Savings in foreign currency - FCNR accounts are an efficient way of parking and saving your foreign income in India. Deposits can be retained in most leading currencies like USD, GBP, SGD, etc. 

Opening NRI savings account with IDFC FIRST Bank
 

To open an IDFC FIRST Bank NRI Savings Account, you must be an - 

• NRI (non-resident Indian)
• PIO (person of Indian origin)  
• OCI (overseas citizen of India) 
• A seafarer employed with an international vessel
• An oil rig employee on an international project 
• A student studying overseas

The process
 

• Fill in your name, country of residence, phone number, and email ID on the NRI Banking "Apply Now" page
• IDFC FIRST Bank will contact you and help you with the account opening process. It would be best if you kept all relevant documents ready
• You can also open an NRI savings account by visiting an IDFC FIRST Bank branch and fulfilling the account opening formalities in person with your documentation

Documents required
 

• Your passport
• Proof of non-resident status 
• Overseas address proof 
• PAN/Form 60
• FATCA information
• Colour photograph 
• An image of your signature

* https://economictimes.indiatimes.com/jobs/c-suite/why-you-should-consider-product-management-as-a-career-in-2023-and-how-to-upskill/articleshow/100297855.cms

To sum up
 

To open an NRI account in India, the process is quite simple, with basic documentation required in most cases.

With IDFC FIRST Bank, all the NRI banking services you could want are just a few clicks away - be it for your NRI savings accounts, deposit accounts, investments, or insurance. So, don’t forget to open an NRI savings account of your choice with IDFC FIRST Bank and enjoy your newly earned financial status with ease.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.