You cracked the job abroad; your visas are done, and the remaining preparations are on. Before you board the flight and bid adieu to your family, have you thought about how you are going to manage your funds in India? Have you made arrangements as to how your loved ones can access those funds in your absence?
Some of the appointment letters provide the time frame as to when you will receive an NRI status. Whether you are or not an NRI, you can create an account in the bank. Banks call you ‘First Time Travellers’ and assist you in opening an NRI account.
Types of NRI accounts:
According to Foreign Exchange Management Act (FEMA) guidelines, it is illegal for NRIs to hold savings account in India. To manage their funds in a secured place, banks offer the provision of NRO and NRE account. By owning these accounts, NRIs can send the money they earn overseas to their family and can retain their assets from India in the residing country.
What is an NRE account?
The NRIs can hold Indian currency investments such as savings, current, recurring and fixed deposits in this account. Your foreign currency gets converted into INR while depositing in an NRE account. The account is tax-free as well.
Also, transferring money from the overseas country to India is free. Another benefit is that mutual funds get instant and easier if NRE account number is linked. NRIs also have the liberty to conduct financial transactions on the banks portal. If you open NRE account online, you can get the operations done on the go.
Points to remember before opening an NRE account:
1) The account should be maintained in Indian denomination
2) You can have a joint NRE account only if both the members are NRIs
3) NRE accounts can be opened as savings or current account. The average monthly balance to be maintained in the account should be around INR 75,000
4) Interest rates offered NRE account differs from that of NRO account. Currently, banks are offering similar rates on both the accounts
5) Exchange rate fluctuations can result in loss of currency. With that in mind, NRE accounts are open to two kinds of loss: daily volatility in the form of rupees and conversion loss.
6) An NRI’s primary concern is fund transfer. Through an NRE account, NRIs can not only transfer money to one NRO account but to n NRO accounts.
7) Income earned in a foreign country can be deposited in NRE account. Withdrawals are, however, made in INR.
Before you head overseas, open NRE account online and add a mandate holder who can handle your financial dealings while you are away. Once you start earning in dollars, you can remit the amount in your NRE account. If you handle these basics, you can head to your destination with no pressure.
Some of the appointment letters provide the time frame as to when you will receive an NRI status. Whether you are or not an NRI, you can create an account in the bank. Banks call you ‘First Time Travellers’ and assist you in opening an NRI account.
Types of NRI accounts:
According to Foreign Exchange Management Act (FEMA) guidelines, it is illegal for NRIs to hold savings account in India. To manage their funds in a secured place, banks offer the provision of NRO and NRE account. By owning these accounts, NRIs can send the money they earn overseas to their family and can retain their assets from India in the residing country.
What is an NRE account?
The NRIs can hold Indian currency investments such as savings, current, recurring and fixed deposits in this account. Your foreign currency gets converted into INR while depositing in an NRE account. The account is tax-free as well.
Also, transferring money from the overseas country to India is free. Another benefit is that mutual funds get instant and easier if NRE account number is linked. NRIs also have the liberty to conduct financial transactions on the banks portal. If you open NRE account online, you can get the operations done on the go.
Points to remember before opening an NRE account:
1) The account should be maintained in Indian denomination
2) You can have a joint NRE account only if both the members are NRIs
3) NRE accounts can be opened as savings or current account. The average monthly balance to be maintained in the account should be around INR 75,000
4) Interest rates offered NRE account differs from that of NRO account. Currently, banks are offering similar rates on both the accounts
5) Exchange rate fluctuations can result in loss of currency. With that in mind, NRE accounts are open to two kinds of loss: daily volatility in the form of rupees and conversion loss.
6) An NRI’s primary concern is fund transfer. Through an NRE account, NRIs can not only transfer money to one NRO account but to n NRO accounts.
7) Income earned in a foreign country can be deposited in NRE account. Withdrawals are, however, made in INR.
Before you head overseas, open NRE account online and add a mandate holder who can handle your financial dealings while you are away. Once you start earning in dollars, you can remit the amount in your NRE account. If you handle these basics, you can head to your destination with no pressure.
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