NRE or Non-Resident External account is a type of bank account that is maintained by an NRI or Non-resident Indian. This kind of a bank account is instrumental in remitting the earnings received from abroad. The NRI can maintain this account both in his/ her home country and in an account situated in a country somewhere off-shore. The guidelines for maintaining an NRE account is pretty similar to that of any rudimentary account. There are a number of features of an NRE account that you should be informed about. Some of these are-
• Tax- Free: The NRE account does not impose any charges even if the quarterly balance is not maintained. Further, the balance that is kept in the account is free of any wealth-tax.
• The Perks of Repatriation: If the NRI account holder wishes, he or she can repatriate the complete credit balance outside of India, whenever he or she desires. And the process is very smooth as well.
• Interest Rate: Generally the NRE account offers a really high-interest rate. However, this rate can vary between different banks. Often the interest is calculated based on the closing balance every day, and the interest is often paid on a half-yearly basis in the months of June and December.
• It’s Convenient- The convenience factor of opening an NRE account is huge. It is extremely easy to open this sort of an account. All you need to do is go online, fill out a form which you will find on the respective bank webpage. Take out the printout, attach this printout version with your other document copies and mail it to the concerned bank in the home country.
• Joint Ventures: The NRE account features allow you to maintain this account jointly with another NRI, for example, your spouse or your kids.
• Further Benefits that Investment Brings: The NRE account gives you the privilege of investing in mutual funds by linking your savings account to the investment savings account.
• Benefits of a Mandate Holder: Another very unique feature of an NRE account is that you can appoint a mandate who will be in charge of operating your account on behalf of you. This mandate is allowed when written authorization is provided to a particular person to manage the said account on behalf of the primary holder.
Listed above are some of the features that are unique to an NRE account. In case you have been debating about opening a NRE account for a while one, read these features, think about the benefits you can enjoy and open your NRE account today!
• Tax- Free: The NRE account does not impose any charges even if the quarterly balance is not maintained. Further, the balance that is kept in the account is free of any wealth-tax.
• The Perks of Repatriation: If the NRI account holder wishes, he or she can repatriate the complete credit balance outside of India, whenever he or she desires. And the process is very smooth as well.
• Interest Rate: Generally the NRE account offers a really high-interest rate. However, this rate can vary between different banks. Often the interest is calculated based on the closing balance every day, and the interest is often paid on a half-yearly basis in the months of June and December.
• It’s Convenient- The convenience factor of opening an NRE account is huge. It is extremely easy to open this sort of an account. All you need to do is go online, fill out a form which you will find on the respective bank webpage. Take out the printout, attach this printout version with your other document copies and mail it to the concerned bank in the home country.
• Joint Ventures: The NRE account features allow you to maintain this account jointly with another NRI, for example, your spouse or your kids.
• Further Benefits that Investment Brings: The NRE account gives you the privilege of investing in mutual funds by linking your savings account to the investment savings account.
• Benefits of a Mandate Holder: Another very unique feature of an NRE account is that you can appoint a mandate who will be in charge of operating your account on behalf of you. This mandate is allowed when written authorization is provided to a particular person to manage the said account on behalf of the primary holder.
Listed above are some of the features that are unique to an NRE account. In case you have been debating about opening a NRE account for a while one, read these features, think about the benefits you can enjoy and open your NRE account today!
No comments:
Post a Comment