Often, students who go abroad for studies find a secured job after the completion of their course and ultimately decide to settle there. Although the entire scenario might sound rosy, it is not as it seems. What about all the financial obligations back at your motherland? What if you are the only earning son/daughter in the family? How are you going to fund your parents?
Having an NRI bank account is the best way to keep your ties intact back home. Apart from the above-mentioned reasons, NRIs maintain a bank account in India so that they can save some overseas money in the Indian account and safely secure their hard-earned Indian money. Indian banks offer various services for NRIs so that they can manage their financial transactions smoothly and in a hassle-free manner.
Banks have provision for 3 kinds of NRI accounts. Let us learn in detail about them:
1) Non-Resident External (NRE) Savings Account: NRE accounts are useful for NRIs who wish to transfer their foreign currency to their loved ones in India with ease. However, you cannot deposit Indian money in this account. A plus point of this account is that you are exempted from taxes. You can open this account either as savings or fixed deposit. You can have a joint NRE account but avoid opening the account with an Indian resident. If you return to India and want to operate the NRE account, it can be converted into a Resident Account.
2) Non-Resident Ordinary (NRO) Account: This account is particularly useful for those who have constant flow of income in the form of pensions, dividends, etc. while they are staying overseas. For other needs or making local payments, an NRO account comes handy for NRIs. The first requirement while creating this account is that the source of income should be from India and not any other country. This account, too, can be opened as savings account and fixed deposit. The money kept in this account can be later easily transferred to any other NRO account. The interest earned via NRO account comes under taxable slab.
3) Foreign Currency Non-Resident (FCNR) Fixed Deposit Account: This kind of NRI bank account is useful whenever you face currency fluctuations in the country you are residing. You can keep your foreign currencies in the same denomination in this account. The account operates only in foreign currency. The interest earned through this account does not fall under the taxable slab. You can also open a joint FCNR account. The tenure for depositing amounts will be anywhere between 1-5 years. The currencies accepted in FCNR are Euros, Canadian dollars, US dollars, Australia dollars, Pounds sterling and Japanese yen.
It is a painful process to stay away from your family and loved ones. The same emotions are shared by your loved ones back home. Nothing can fill your absence during festivals and important occasions. However, your presence is covered up by being financially available for your family through these different NRI accounts.
Having an NRI bank account is the best way to keep your ties intact back home. Apart from the above-mentioned reasons, NRIs maintain a bank account in India so that they can save some overseas money in the Indian account and safely secure their hard-earned Indian money. Indian banks offer various services for NRIs so that they can manage their financial transactions smoothly and in a hassle-free manner.
Banks have provision for 3 kinds of NRI accounts. Let us learn in detail about them:
1) Non-Resident External (NRE) Savings Account: NRE accounts are useful for NRIs who wish to transfer their foreign currency to their loved ones in India with ease. However, you cannot deposit Indian money in this account. A plus point of this account is that you are exempted from taxes. You can open this account either as savings or fixed deposit. You can have a joint NRE account but avoid opening the account with an Indian resident. If you return to India and want to operate the NRE account, it can be converted into a Resident Account.
2) Non-Resident Ordinary (NRO) Account: This account is particularly useful for those who have constant flow of income in the form of pensions, dividends, etc. while they are staying overseas. For other needs or making local payments, an NRO account comes handy for NRIs. The first requirement while creating this account is that the source of income should be from India and not any other country. This account, too, can be opened as savings account and fixed deposit. The money kept in this account can be later easily transferred to any other NRO account. The interest earned via NRO account comes under taxable slab.
3) Foreign Currency Non-Resident (FCNR) Fixed Deposit Account: This kind of NRI bank account is useful whenever you face currency fluctuations in the country you are residing. You can keep your foreign currencies in the same denomination in this account. The account operates only in foreign currency. The interest earned through this account does not fall under the taxable slab. You can also open a joint FCNR account. The tenure for depositing amounts will be anywhere between 1-5 years. The currencies accepted in FCNR are Euros, Canadian dollars, US dollars, Australia dollars, Pounds sterling and Japanese yen.
It is a painful process to stay away from your family and loved ones. The same emotions are shared by your loved ones back home. Nothing can fill your absence during festivals and important occasions. However, your presence is covered up by being financially available for your family through these different NRI accounts.
No comments:
Post a Comment