NRO account: All you need to know about fixed NRO fixed deposits

The NRI account is an ideal option to consider investing funds from abroad or from the resident country. Amongst the different options that are available, the NRO account fixed deposit is one option to consider, especially when investing funds for a long-term purpose. This type of NRO account is best used to manage income that is earned in India through the form of dividends, rents or even pensions earned from other countries.

The funds that are invested in this account is held in the local currency, which is INR. Not only does it make it convenient to consolidate earnings from India, but it also makes it easier to access the funds in the local currency. Additionally, one of the main features that the account holder must be aware of is the repatriate limit for the financial year, which is about 1 million USD.

Apart from this, there are additional features of this type of NRO account that must be taken into consideration. They include:

• Taxation: This FD attracts taxes as per the Indian laws. As per the Income Tax Act, 1961, the interest earned on the account is over 30%. Therefore, careful consideration must be made when investing in this account so as to ensure that the amount invested does not attract taxation.

• Repatriation: NRO fixed deposits do not offer the option to repatriate funds, especially on the principal investment. However, the interest earned from the NRO fixed deposit can be transferred to another foreign account.

• Joint account: The NRO account can comprise of a single or joint account holders. However, an NRI account holder can hold a joint NRO account only with an Indian resident citizen.

• Deposit and withdrawal: Funds that have originated from India can only be used to open an NRO account, which in turn can be used to open an NRO fixed deposit. However, no funds from abroad can be used to open the NRO fixed deposit. But, funds from an NRE account can be transferred to the NRO account in order to open a fixed deposit account. If the account holder would want to withdraw funds from the account, it can only be withdrawn in Indian rupees.

• Interest rates:  The interest rate involved in the NRO fixed deposit account will differ according to the current market conditions, as well as the bank you are applying in. Therefore, before opening the account, you must first check the available rates to know which the best one to suit your needs is. The maturity of such a deposit can last anywhere between a year to 20 years.

NRI and income tax: Rules you need to follow

No doubt, as an NRI, you will have unrestricted access to plenty of facilities and amenities, which also includes several financial opportunities. At the same time, you will also have the opportunity to invest in several financial options back home, such as an NRI account or deposit.

However, like an Indian resident, you will be required to pay certain income tax. Here are a few rules you need to keep track of, about the income tax:

• As per the current government regulations, an NRI will have to pay tax on any income that is accrued or raised in India or even received in India. Therefore, income that is earned through salary, rental income, interest income from a fixed deposit or bank account is taxable. Even capital gains on any asset that is sold come under this category. If the income of an NRI is more than the exemption limit in the financial year, the individual is liable to file returns in India. In order to claim tax refunds or to carry forward any losses in the future, the individual will be required to file returns.

• If an NRI returns to India permanently after spending a fixed amount of years abroad, the foreign income that is earned is not taxable immediately. In this case, an individual who has been a non – resident for nine consecutive years will remain an RNOR, which is a transition between an NRI and a resident. As per the government regulation, any income which is earned outside the country will not be taxed, unless it is a business or profession that is controlled from India. Once the status has been transferred to a’ resident’, the international income that is earned will be taxed in India.

• Previously, an NRI would be required to pay TDS if the individual did not possess the PAN document. The TDS would be charged at 20% or the rate in force, whichever was higher. As per the current budget, there is no requirement to pay TDS if no PAN documents have been provided. However, certain set of documents under the recently notified rules, must be provided to avoid paying TDS.

• NRI’s cannot open a public provident fund, which is the PPF. However, if the individual has already possessed a PPF account previous to becoming an NRI, the account can be held only until the time of maturity. At this time, the account will not have the option to be extended, whereas the funds would have to be remitted in the NRI account, in the country of residence. In case, post maturity, the account is left unattended; it will be considered as "extended without contribution.

What are the tips to keep in mind when transferring funds abroad?

Transferring funds from location to another will be a stressful process, especially if you are doing it for the first time or if you are sending a large amount of funds. On the contrary, when you know a bit of the ins and outs of international money transfer you can rest easy, knowing that you have the possibility to save funds and time while enjoying a peace of mind as well.

Being aware of how to make a transfer will require a few components, namely, keeping track of your affordability, safety, security, reliability, knowledge and common sense. At the same time, you can follow certain tips to ensure that you have a smooth and successful money transfer. They include:

Being aware of the current exchange rates: With the international money transfer, most individuals are unaware that the biggest fee comes the exchange rate itself. This is based on the interbank exchange rate, which is used by major international banks to trade amongst themselves. Additionally, it also affects the overall money transfer, exclusive of a fixed sending or receiving a fee. However, very few members of the public will have access to the interbank rate or are even aware of it. By being aware of this rate, you can calculate the best rate for your financial transfer. 

Be aware of transfer fees: One of the main factors you need to be aware of is the transfer fees. Transfer fees can be added to the transaction from the sender’s side or the recipient’s side. The best way to benefit from this service, is to look out for a bank or financial institute that will provide you with reasonable or discounted transfer fees, especially for overseas payment.

Be safe and secure: All banks and financial institutes are regulated by a particular financial body that regulates all transactions and services about any financial facilities. Before you opt for a transfer service, check for the safety regulations followed by these institutes and if they comply with the local or international standards. At the same time, ensure that you can easily contact the customer service team, without being diverted.

Review the reasons why you are making an international money transfer: There are plenty of reasons why you would be in a position to send funds abroad. They can include:

• Purchasing a property for your retirement years
• Facilitate a business that involves international customers or suppliers.
• Facilitating the expenditures of a college student who has resided abroad
• Sending and receiving invoice funds as a freelancer
• Financing a family event
• Financing purchases during auspicious events or festivals.
• Or even relocating for work.

Based on your requirement you can opt for a provider that will handle your type of money transfer, thus providing you with the peace of mind.

How can you benefit from choosing the right money transfer service?

You could be individual who has settled abroad who has to send funds on a regular basis home. Or you can even be a student who is studying abroad who requires a regular income to manage the daily expenditures. In similar ways, there are plenty more individuals who would require funds or need to send funds abroad. In this case, you would want to opt for a money transfer service that would suit your requirements.

However, with plenty of money transfer services available in the financial market, how do you choose the right one? Neither would you, or the recipient would want to sit around and wait till the money transfer goes through. Neither would you want to sit and wonder how long your delay with last. Therefore, it is important to know what money transfer services are available, and how they can benefit you. Bymaking a transfer service comparison, you will be able to know the best way to send or receive money from abroad or from your own country. Here is how you can benefit from comparing all the available options:

• Save money: Have you ever compared flight details before opting for one or even something as simple as comparing grocery items before making a purchase? The main purpose of this function is to save funds. So why shouldn’t you compare money transfer services before making a choice? By doing so, you can save a lot on your funds for long-term transactions. Additionally, certain comparison services are 100% free.

• Save time: In today’s age, ‘time is money’ is true, especially when it comes to transferring funds on a regular basis. You would not want any delays in your transactions, especially if there are bills or fees to paid. Plenty of money transfer services offer express services, which can are relatively cheaper than losing out a on deadline.

• Avoid hidden fees: Although plenty money transfer services offer ‘zero fees’ solutions, they rarely exist. Only co – operations will actually make the calculations for you. Therefore, ensure that you are aware of the possibility of these ‘zero hidden fees’ and get clarity on them.

• Look out for special deals and discounts: Plenty of money transfer services recognize the need to send funds during special times, events and functions. At such times, these services offer great deals for all your money transfers. Alternatively, they will offer deals and discounts if you register with the service for a long term purpose.

• Transparent services: Transparency in the services offered will provide you with an understanding and awareness of what is available and what can suit you. Through this transparency, you can get an understanding of what services can benefit your and how much you can save in the long run.

Tips for Safe Online Money Transfer Experience

ney transfer solution. It is one of the best ways to send money to any account without any hassle. This has even led to its growing popularity. Some banks offer the option of online money transfer. Have you ever given a thought whether your online transfer is safe? The growing popularity of the online financial transactions is also constantly prone to attacks. Well, you can have a safe online transfer experience with these safety tips.

Avoid Using On-Screen Keyboard

One of the easiest ways to predict a password is when you use the on-screen keyboard. You might think if is a feasible option but you should know it is recorded by key-loggers. A key-logger can be anything whether hardware or even application. It does the work of recording and passing the information of all the keyboard taps you made. This is further used to know your username and password.

Use Random Password

You have told a lot of times to avoid using passwords that are easy to predict. Pick out any random password. Ensure your password is not your name, your birthday, your family or loved one’s name, your pet's name and so on. They are easy to predict. Instead, you can pick the first letter of the long sentence. The sentence can be anything like I proposed my girlfriend on 10th December, well in this case the password would be ipmgo10D. This is not an easy to guess the password. Try to use the number and other symbols. Ensure the caps lock in the password is not the first letter.

Clear the Cache

It is of paramount importance to clear the cache as and when you visit an online money transfer website. Browsers tend to save the pages you have visited which further makes easier to access the next time. However, clearing the cache ensures no one views your online banking account information which is confidential. Also, make sure not to consider the option of remembering you on this computer that automatically saves your confidential information.

Always Visit the Website to Log into Your Account
You might receive a lot of emails from your banks. It is wise that you do not follow these links to access your account. This is how phishing works. It directs you to a malicious site that resembles your bank's website and gathers all the information provided by you. One of the best ways to spot this aspect is if there is an unlocked padlock or unbroken key symbol. A trusted website tends to be secured through an encryption process.

Well, these are just some of the safety tips one need to consider for secured online money transfer experience.

What are the factors to consider when making a money transfer?

Making a money transfer today will seem like an easy process today. You can log online onto your bank website and input the amount you need to send. You can even approach a money transfer institute and opt for the money transfer you want to make.

However, there is more to clicking a button or approaching a money transfer institute to make the required transfer. Are you aware you can spend more on your transfer fees over your transfer amount, or that you may have to pay extra charges depending on the pick-up location and method?

Apart from these factors, there are plenty more that can influence you money transfer. Therefore, if you are going to make a transfer, here are a few factors you need to take into consideration. They include:

Exchange rate: This is one of the most important factors if not an imperative one when it comes to opting or making a money transfer. Whether you are making a money transfer to India or any other country, you must first check the exchange rate of the value you are sending. Exchange rates can change in a matter of hours. Therefore, today’s value will not be the same as tomorrow. Therefore, to avoid the possibility of overspending on your transfer, check the exchange rates.

Transfer fee: Each institute charges a service fee for making a transfer. Plenty of banks and financial institutes mostly offer rates and discounts on this factor, so it is a good idea to take a look at it. In most cases, the transfer fee depends on the amount that is being transferred or the location that it is being transferred to.

Pick up method: Some receivers prefer to collect their transfer through particular modes or even have them deposited at particular locations. If the bank or financial institute does not offer the standard pick up methods, they will offer additional charges for any other drop op service.

Payment method: There are different ways you can make a money transfer. This can differ from the online transfer, cash deposit or even cheques. Each of these options will attract different fees or payments. Therefore, it is crucial that you check each available option before you make the transfer.
Transfer time: The transfer time can vary depending on the payment and collection methods. It can also differ in the location you want it to be sent to.

Therefore, if you need to make an urgent money transfer to India or any other country abroad, you will need to take into consideration the transfer time that will suit your needs, or you want to reduce it.
Apart from these factors, there are plenty more that need to be taken into consideration before you make your decision. It is best to compare all the available factors before settling on one option.

Are you aware of the All you need to know about EMV chip embedded ATM cards

Over the last few years, banks are slowly upgrading their banking cards to incorporate the new EMV chip embedded system. EMV is a short hand for the technologically-driven service that is now making all banking cards safer in the future. It has been inspired by Euro pay, MasterCard, and Visa, which have collaborated to create a series of banking cards with a more secure technology for banking transactions.

Birth of the EMV chip banking card due to the banking card fraud epidemic

Several credit, debit, and even ATM cards were being used in plenty of frauds. In this case, the details of the card used to be collected and revealed to buyers, who would purchase this information to make replicate banking cards. By using these replicate cards, one could easily access and make transactions, with funds getting debited directly from the original card owner’s account. In addition to this, frequent data breaches have exposed consumer’s data to the public, which has added fuel to this fire. However, EMV chip any debit, credit or ATM card makes it difficult for such a particular tactic.

How do EMV card works?

EMV cards are embedded with a microprocessor chip that contains the bank account’s information. This chip is read, when the card is dipped into the terminal, tapped against the payment terminal or even when it is waved in front of it. The process of reading this computer chip is different as compared to the traditional card with a magnetic strip, which is read only when the card is swiped through the machine. For criminals who access this data, it is almost difficult to replicate the dynamic transaction code that is generated by the chip making it considerably safer.

Why is this EMV chipped card safer?

In the occasion that the store or restaurant where you used your card has been hacked, the information of the banking card that is stolen cannot be used to make additional purchases or create new banking cards. Each transaction used with this EMV chip credit, debit or ATM card uses a unique authentication code with is a one-time use only. Additionally, these microprocessor chips are virtually impossible to duplicate.


How does the PIN’s come into play?

Apart from the embedded chip, the PIN adds an extra level of safety to the card usage. If a card required it to be accessed with a PIN, a code must be entered after the card is swiped. Without this pin, it wouldn’t work. These PINs are particularly helpful in preventing a lost or stolen credit or debit card from being used. This also works as a better alternative to thwarting fraud, especially when a scribbled "signature” is required on an electronic keypad.