A Bank Account lets you park your money, grow your wealth, and conduct various banking activities. There are types of Bank Accounts you can open. Every account has different eligibility and features. You should consider both factors to open a suitable account. If you are a Non-Resident Indian (NRI), you should explore NRI Accounts. They are ideal for meeting your banking needs.
An NRI Bank Account has three types – Non-Resident Ordinary, Non-Resident External, and Foreign Currency Non-Resident Account. An NRO Account lets you manage and grow your Indian income. On the other hand, the NRE Account helps you secure your foreign currency earnings. An FCNR Account protects your money from foreign currency fluctuations.
Here are the most commonly asked questions about NRE Accounts:
What is the NRE Account denomination?
An NRE Account is denominated in Indian Rupees. This means when you deposit your foreign currency earnings in the account, it automatically gets converted to INR. The currency conversion takes place considering the prevailing currency rates. You can deposit money into the account by making a direct online transaction, cash, or cheque.
What are the NRE Account interest rates?
Every bank has a different interest rate offering. Hence, you should consider opening an account with a bank offering the highest NRE Account interest rates. You should also consider maintaining a higher account balance. It helps attract a better interest rate.
Typically, banks credit interest earnings to your NRE Account every quarter. However, the bank’s interest rate offering and calculation methods are subject to change. You should check the bank’s website to stay updated with the latest information.
What are the tax implications associated with an NRE Account?
Your NRE Account interest earnings are entirely tax-exempt. This allows you to enjoy the earnings to the fullest.
What are the repatriation benefits linked with an NRE Account?
Today, a financial emergency can arise out of the blue. Hence, you need to make provisions. You enjoy complete repatriation with your NRE Account. This means you can transfer money to your country of residence at any given time, allowing you to meet an emergency in a hassle-free manner.
How to open an NRE Account?
As with NRI FDs, opening an NRE Account is very simple. You can open an account by visiting the nearest bank branch or online. In both modes of account opening, the procedure remains the same. You must fill out the account opening form and submit the necessary documents.
Here are the documents you need to open an NRE Account:
- Two passport-size photographs
- A photocopy of the PAN Card/Form 60
- A photocopy of your valid passport
- Indian and overseas residence address proof
- NRI status proof, residence/employment visa or residence/ work permit
PIO and seafarers must submit additional documents. You can reach out to the bank to learn about the same. Once your details and documents are verified by the bank, your account will be opened in no time.
