In the past years taking trips or settling down in foreign countries was a luxury that only the rich could afford, today a number of parents can think of sending their children to America, Britain or other countries to pursue higher studies or make a career for themselves. They generally take this life changing decision with the help of some savings or an education loan. Thus, the world today has literally become a global village, and many Indians do opt to pursue further education in other countries and settle down there for good.
They do have parents or families back in India, which is why they continue to remain in touch with their traditional roots. Moreover, India has great investment options, including attractive property as well as stock prices. Thus, NRI’s find it financially beneficial to invest in property in the country, and play the field in the Indian stock market. Moreover, they also benefit from the attractive interest rates they can take advantage of by investing in fixed deposits.
In order to make good investments in the country or even when it comes to sending money to one’s parents or family, it is best for an NRI to hold and account in the country. It may be an NRE, NRO or FCNR account. One can also open all three accounts as each has a different purpose.
A parent opening any type of account for their child abroad, be it an NRE or an FCNR account, should first ensure that they are aware of all the rules and regulations that are set up for NRI banking by the reserve Bank of India (RBI). The RBI keeps making alterations and amendments to the laws, which is why one should keep themselves up-to-date in order to make the most of them.
What is an FCNR account?
An FCNR account is basically a term deposit, which means that it is a type of fixed deposit account which earns interest on savings.
Parents with children abroad, can open FCNR account for their offspring, so that their kids can start saving in foreign currency. It is highly likely that kids studying abroad take up side jobs and internships where then get paid. They can save this money in a term deposit and also earn interest on it.
Moreover, the Indian government allows deposit in the FCNR account in 6 different currencies, namely, the US dollar, Australian dollar, Euro, Japanese Yen, Pound Sterling and Canadian dollar.
One can definitely make the most out of an FCNR account with attractive interest rates.
They do have parents or families back in India, which is why they continue to remain in touch with their traditional roots. Moreover, India has great investment options, including attractive property as well as stock prices. Thus, NRI’s find it financially beneficial to invest in property in the country, and play the field in the Indian stock market. Moreover, they also benefit from the attractive interest rates they can take advantage of by investing in fixed deposits.
In order to make good investments in the country or even when it comes to sending money to one’s parents or family, it is best for an NRI to hold and account in the country. It may be an NRE, NRO or FCNR account. One can also open all three accounts as each has a different purpose.
A parent opening any type of account for their child abroad, be it an NRE or an FCNR account, should first ensure that they are aware of all the rules and regulations that are set up for NRI banking by the reserve Bank of India (RBI). The RBI keeps making alterations and amendments to the laws, which is why one should keep themselves up-to-date in order to make the most of them.
What is an FCNR account?
An FCNR account is basically a term deposit, which means that it is a type of fixed deposit account which earns interest on savings.
Parents with children abroad, can open FCNR account for their offspring, so that their kids can start saving in foreign currency. It is highly likely that kids studying abroad take up side jobs and internships where then get paid. They can save this money in a term deposit and also earn interest on it.
Moreover, the Indian government allows deposit in the FCNR account in 6 different currencies, namely, the US dollar, Australian dollar, Euro, Japanese Yen, Pound Sterling and Canadian dollar.
One can definitely make the most out of an FCNR account with attractive interest rates.
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