Although plenty of NRI’s have settled abroad, these individuals still look for options to invest in back home. These options can range from different types of funds, convertible debentures and even stock market options. However, without the basic requirements of a bank account, it is difficult to invest in these options.
In this case, an individual can invest in the different saving accounts, designed specifically for the NRI’s. The NRO and the NRE account both come under the NRI savings account, which can be used for these purposes alone. Here are the different types of NRI savings account and how they can be utilized:
NRO Savings Account:
The NRO savings account can be opened by an Indian origin individual whose possesses a PIO or OCI status. This account holds a restricted reparability. In other words, only a fixed amount can be transferred back to the home country in a single financial year. In this account, the account holder can transfer at most 1 million USD, only after providing an undertaking along with a certificate from a chartered accountant. Like other savings account, this account also earns an interest, which is applicable to certain types of taxes. One of the major advantages of this account is that is can be held jointly with an NRI as well as a resident Indian. Additionally, this account can be transformed into a normal account once the account holder returns home permanently. If you want to invest your earnings from your home country, this is the best account you can opt for. Income in the form of rent and dividends can be used to invest in the account.
NRE Saving Account:
One of the main advantages of the NRE savings account is that it is freely repatriable. The principal amount and the interest that is earned in the NRE account can be easily repatriated. Additionally, this account is also free from taxation. This account can be jointly held with another NRI, however, it cannot be held with a resident Indian. If you want your overseas account to be transferred to your home country, this is the best account available. You can also use this account to maintain your savings in the rupee currency while keeping it liquid.
Since each NRI’s financial individual is different, one can use these differences to their own advantage. However, in the end, the choice depends on the account holder. These two types of accounts are beneficial to those who stay abroad for at minimum period of least a year before returning back to India. These savings accounts are the best accounts for NRI’s as they are easily maintainable. Additionally, banks and financial institutes are making it easier to maintain these account through secure and convenient sources allowing you to access them from any location.
In this case, an individual can invest in the different saving accounts, designed specifically for the NRI’s. The NRO and the NRE account both come under the NRI savings account, which can be used for these purposes alone. Here are the different types of NRI savings account and how they can be utilized:
NRO Savings Account:
The NRO savings account can be opened by an Indian origin individual whose possesses a PIO or OCI status. This account holds a restricted reparability. In other words, only a fixed amount can be transferred back to the home country in a single financial year. In this account, the account holder can transfer at most 1 million USD, only after providing an undertaking along with a certificate from a chartered accountant. Like other savings account, this account also earns an interest, which is applicable to certain types of taxes. One of the major advantages of this account is that is can be held jointly with an NRI as well as a resident Indian. Additionally, this account can be transformed into a normal account once the account holder returns home permanently. If you want to invest your earnings from your home country, this is the best account you can opt for. Income in the form of rent and dividends can be used to invest in the account.
NRE Saving Account:
One of the main advantages of the NRE savings account is that it is freely repatriable. The principal amount and the interest that is earned in the NRE account can be easily repatriated. Additionally, this account is also free from taxation. This account can be jointly held with another NRI, however, it cannot be held with a resident Indian. If you want your overseas account to be transferred to your home country, this is the best account available. You can also use this account to maintain your savings in the rupee currency while keeping it liquid.
Since each NRI’s financial individual is different, one can use these differences to their own advantage. However, in the end, the choice depends on the account holder. These two types of accounts are beneficial to those who stay abroad for at minimum period of least a year before returning back to India. These savings accounts are the best accounts for NRI’s as they are easily maintainable. Additionally, banks and financial institutes are making it easier to maintain these account through secure and convenient sources allowing you to access them from any location.
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