More and more individuals are travelling abroad for better employment ventures. Some even travel abroad to settle down with their families who have been employed abroad. No matter the reason, if one has a lot of financial investments, one would need to take the appropriate decision to either reinvest in NRI – appropriate option or opt to withdraw the funds completely.
So what are the available options for this kind of situation? For this case, the NRO account has been provided. Here is how this account will assist you:
Account to invest income generated from India:
The real estate market in India is a thriving industry. Therefore, it comes as no surprise that plenty of individuals have invested in this market for a healthy return. Government regulations allow this investment to continue, especially when settled abroad. However, in this case, the individual must invest these earning in the NRO account. In order to do so, you must inform your bank about your migration plans and take the necessary steps to convert your regular savings bank account into NRO savings account.
Account for termed deposits:
If you possess termed deposits such as a recurring or fixed deposits, you will need an account to deposit the interest that is earned. Additionally, if your deposit needs to be deposited after it reaches maturity, you will also need an account for this purpose alone. Keep a track of your maturity and interest dates to take the necessary steps. Convert your regular savings into the NRO account so that you can deposit the interest earned on this account.
Paying off previous debts:
If you previously hold any financial debt that needs to be paid off, you will need an account that allows a flexibility from abroad. Through the NRO account, you can continue to pay off your previous debts, without suffering from any additional costing due to overseas expenses.
Insurance
It is imperative to have insurance irrespective of where you live. This is crucial, even when you travel abroad. With your life insurance, you either continue with the existing plan or opt for a new plan in your residence country. As compared to the insurance plan in India, the plans abroad are considerably cheaper. However, insurance plans such as home insurance will require local funding. This is where the NRO account will be useful.
Multiple investment profiles:
Multiple investment profiles are a great way to ensure that you have a good income. However, each profile will undergo a change, when your residency status changes, as given here:
• Mutual funds or ongoing systematic investment plans will continue with funding from an NRO account. However, this differs depending on the financial institute you are investing in.
• Previously held PPF’s can be continued. However, as an NRI, you will be unable to invest in a new PPF account.
• You can invest in shares and bonds through certain portfolio investment schemes of the RBI. You will need to submit a certain set of documents before transferring the existing shares to this new profile.
So what are the available options for this kind of situation? For this case, the NRO account has been provided. Here is how this account will assist you:
Account to invest income generated from India:
The real estate market in India is a thriving industry. Therefore, it comes as no surprise that plenty of individuals have invested in this market for a healthy return. Government regulations allow this investment to continue, especially when settled abroad. However, in this case, the individual must invest these earning in the NRO account. In order to do so, you must inform your bank about your migration plans and take the necessary steps to convert your regular savings bank account into NRO savings account.
Account for termed deposits:
If you possess termed deposits such as a recurring or fixed deposits, you will need an account to deposit the interest that is earned. Additionally, if your deposit needs to be deposited after it reaches maturity, you will also need an account for this purpose alone. Keep a track of your maturity and interest dates to take the necessary steps. Convert your regular savings into the NRO account so that you can deposit the interest earned on this account.
Paying off previous debts:
If you previously hold any financial debt that needs to be paid off, you will need an account that allows a flexibility from abroad. Through the NRO account, you can continue to pay off your previous debts, without suffering from any additional costing due to overseas expenses.
Insurance
It is imperative to have insurance irrespective of where you live. This is crucial, even when you travel abroad. With your life insurance, you either continue with the existing plan or opt for a new plan in your residence country. As compared to the insurance plan in India, the plans abroad are considerably cheaper. However, insurance plans such as home insurance will require local funding. This is where the NRO account will be useful.
Multiple investment profiles:
Multiple investment profiles are a great way to ensure that you have a good income. However, each profile will undergo a change, when your residency status changes, as given here:
• Mutual funds or ongoing systematic investment plans will continue with funding from an NRO account. However, this differs depending on the financial institute you are investing in.
• Previously held PPF’s can be continued. However, as an NRI, you will be unable to invest in a new PPF account.
• You can invest in shares and bonds through certain portfolio investment schemes of the RBI. You will need to submit a certain set of documents before transferring the existing shares to this new profile.
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