An Indian national who holds an Indian passport and resides overseas is known as a non-residential Indian. For such a person, it is impossible to operate an ordinary savings account in India. A specialized account, known as NRE account, acts as the savings account for NRIs and is the most hassle-free way in which you can utilize your foreign earnings in your country.
Such an account differs from a normal savings account in its features. Take a look at the salient features of an NRE savings account.
1. Single or joint accounts
A NRE saving account can be opened in the name of a single person, while two people may also open it jointly. So, you and your spouse do not need to maintain separate accounts in India, when you reside abroad.
2. Documents required
In order to open the NRE savings account, you will need to fill out a form and submit it along with the copy of your passport, visa, two passport sized photographs and the money that you want to keep in the account initially.
3. Currency of the savings
The savings in the account will be maintained in INR and not under any foreign currency. So, when you remit money from abroad, the fund will first be converted into INR and then stored into the NRE saving account.
4. Repatriable account
NRE accounts allow you to freely repatriate the savings abroad. This means that you can transfer the money that you have saved in such an account to your bank accounts abroad. This is quite helpful, in case of emergency requirement of money.
5. No Taxation
The money that you save in an NRE account will not have any tax levied on it, which will help you in saving more. Even in the case of repatriation, TDS will not be levied on the money in question.
6. Payments through NRE account
You can use the account to make payments in either INR or in a foreign currency. In case of foreign currency payment, the money will first be converted from INR to the currency of your choice at the prevailing exchange rates.
The features of the NRE account may differ from one bank to the next. So, it is essential for you to check the interest rate and the terms related to the NRE account for a particular banking institution and then you can choose to open an account in the bank, the terms and conditions of which align with your requirements.
Such an account differs from a normal savings account in its features. Take a look at the salient features of an NRE savings account.
1. Single or joint accounts
A NRE saving account can be opened in the name of a single person, while two people may also open it jointly. So, you and your spouse do not need to maintain separate accounts in India, when you reside abroad.
2. Documents required
In order to open the NRE savings account, you will need to fill out a form and submit it along with the copy of your passport, visa, two passport sized photographs and the money that you want to keep in the account initially.
3. Currency of the savings
The savings in the account will be maintained in INR and not under any foreign currency. So, when you remit money from abroad, the fund will first be converted into INR and then stored into the NRE saving account.
4. Repatriable account
NRE accounts allow you to freely repatriate the savings abroad. This means that you can transfer the money that you have saved in such an account to your bank accounts abroad. This is quite helpful, in case of emergency requirement of money.
5. No Taxation
The money that you save in an NRE account will not have any tax levied on it, which will help you in saving more. Even in the case of repatriation, TDS will not be levied on the money in question.
6. Payments through NRE account
You can use the account to make payments in either INR or in a foreign currency. In case of foreign currency payment, the money will first be converted from INR to the currency of your choice at the prevailing exchange rates.
The features of the NRE account may differ from one bank to the next. So, it is essential for you to check the interest rate and the terms related to the NRE account for a particular banking institution and then you can choose to open an account in the bank, the terms and conditions of which align with your requirements.
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