Benefits of Current Bank Account for Businesses

Banks offer you with numerous options when it comes to securing your finances like savings and current account. Each of this account type offers benefits. Savings account work in favour of individuals who want to save to meet their financial requirements in the future. While current account works great for individuals who want to support their regular and frequent transactions. This is one of the primary reason why the current account is majorly considered by businesspersons to carry out their regular banking transactions.  

Apart from businessmen, the current account is also used by freelancers, sole proprietors and so on. Some of the major benefits of having a current account include:

Professionalism in Business:

Professionalism is what is needed when you deal with business acquaintances. This further helps in enhancing your business image and grow effectively. Having a current account for business makes it easier for every transaction. Furthermore, you can have a cheque with the name of your company.

Separate Business Finance from Personal Finance:

When you have a current account, it makes easier to know what belongs to your business alone. A lot of people tend to neglect the importance of opening a current account thinking they can use their savings account for the same. However, when you are dealing with a business acquaintance, it becomes important to have a different account. Hence, the importance of current account. It further helps in separating your personal finance from business finance. This actually works to the benefit of the businesses making it easier to plan your finances. Other than this, it also helps you know how much your business is earning.  When you use your savings account for both business and personal use, you do not get to recognise whether the business is running at a loss, or if your personal finances stable.

Know the Credit Score:

There are times when lenders and creditors tend to ask for your credit worthiness or score before advancing with the credit. Hence, operating a current account makes it easier for this process. You can easily check for your credit worthiness using the inter-bank connections.

Overdraft Facility:

Another vital benefit of a current bank account is that an individual can avail the overdraft facility without any hassle. In short, the account holder can easily overdraw the balance in the account, but on a temporary basis. You can say, it is like a short-term borrowing. The same facility cannot be availed when you have a traditional savings bank account. Having a current account helps in meeting your need for money on a short-term basis.

These are just some of the benefits associated with having a current account in a bank for businesses. Get in touch with the experts for more details.

Top Reasons to Invest in Fixed Deposits

Life is full of uncertainties and hence saving money is of paramount importance. This is where the importance of fixed deposit comes into the picture. Before you continue, it is wise you know what a fixed deposit is. In simple terms, fixed deposit is basically an instrument in which the investor gives a certain amount of money to a bank. Furthermore, the bank pays the amount with interest on the deposit. The rate of interest tends to vary depending on the tenure and the amount. A fixed deposit calculator can be your perfect guide in helping you understand the interest rates. Fixed deposit is a lucrative investment option as you stand to earn great interest with the tenure:

Mentioned are some reasons that tell why fixed deposits are a great investment option:

Great returns:

One of the greatest benefits of fixed deposits is that it offers great and guaranteed returns. It is not the same as investment in the commodity or stock market. You should know fixed deposits are not a risky investment as the returns are not dependent on the fluctuating market rates. In simple terms, investors can rest assured that the investment is in safe hands. It is guaranteed that the investment gets the designated amount at the tenure end. 

Flexible in nature:

Fixed deposits can be taken based on your needs. Some take it for a tenure of one month or even one year or 10 years. In simple terms, the fixed deposits can be invested for any tenure you want. You should know, if you choose a fixed deposit of five years, then it will be kept for that many years alone. The interest for the same depends upon the years you choose. For the same, you can use the fixed deposit interest calculator. It will give you a brief idea on how much of interest you are entitled to based on the years you choose.

Easy Withdrawable:

Though it is said that fixed deposits cannot be withdrawn within the tenure, you should know you can withdraw them, but with a small penalty. It can be due to any reason, whether to meet the financial emergency for marriage, education, medical purpose and so on. The penalty for the same is much less than what is there in the stock market. Fixed deposits can be withdrawn anytime, but an individual stand to lose a certain interest income.

You are highly advised to invest in fixed deposits with different banks. In this way, you do not break one fixed deposit for any emergency. Apart from this, also remember to choose the right tenure as an individual will have to consider the lock-in period too. If an individual withdraws the amount before the tenure, then the returns tend to get lower. Make use of the FD calculator to know how much you will earn from it. Furthermore, it also helps you identify the maturity amount and the interest earned when you open a fixed deposit.

NRI Fixed Deposit – All About It

What exactly is an NRI Fixed Deposit?
Every individual tends to have a fixed deposit as it serves as security in times of need and emergencies. The same applies to Non-Resident Indian (NRI) fixed deposits. It is opened in one of the banks of India. You will find a number of banks offer various and customised NRI fixed deposit schemes and NRI fixed deposit rates. This further works as a perfect tool for savings. However, you should know as compared to a traditional savings account, NRI fixed deposits are high interest yielding financial products. The interest rates of the fixed deposit are paid until a specified maturity date. Several banks offer NRI fixed deposits at competitive interest rates for different tenures. You can choose the one that meets your needs.

Eligibility for NRI Fixed Deposits:

When talking about NRI fixed deposits, it is wise to know the eligibility criteria for the same:
• The NRI fixed deposit can be opened jointly or individually with other Non-Resident Indians.
• Only a Non-Resident individual of Indian nationality or Indian origin is eligible to open an NRI Fixed deposit account. 

Some Vital Things to Know:

• The interest rate is calculated on a quarterly basis, for all the fixed with tenure of six months and above.
• Interest is calculated at simple rates for the fixed deposits schemes tenure of below six months.
• All the interest earned during the previous quarter is later added to the principal for interest calculation.
• The interest rates for fixed NRI deposits is calculated on every quarterly basis.

Benefits of Investing in NRI Fixed Deposits:

There are great benefits associated with NRI fixed deposits. Some of them include:

• An individual stand to earn great interest rates on the savings than traditional savings account by investing in NRI fixed deposits
• There are certain NRI fixed deposits are non-taxable. Say, for example, a fixed deposit when opened through an NRE account is non-taxable.
• With prior notification, banks offer premature withdrawal of Non-Resident fixed deposit. However, you should know, the deposit is qualified for interest only when it is carried on for a certain period of time as designated by the bank.
• Apart from this, several banks also offer loan against certain NRI fixed deposits. Say, for example, an individual or NRI can get loan against the NRE fixed deposits
• An NRI fixed deposit can be easily renewed on maturity.
• Account like Foreign Currency Non-Resident (FCNR) and Non-Resident Ordinary (NRO) are eligible for tax concession

Now, that you have all the details needed, the next step is getting in touch with any bank and open your NRI fixed deposit account.

NRI Account – All You Should Know

With the number of Indians staying abroad, it has become important for them to have a Non-Resident Indian or NRI account. No matter whether you are residing abroad for business, employment or vocation purpose, it is vital to have an NRI account. When it comes to opening an account, ensure it is authorised by the Reserve Bank of India (RBI). There are great benefits associated with opening an NRI account. One of the greatest benefits is that it helps you earn tax-free interest in India.

Who can Open an NRI Account?

As the name suggests, it is solely made for Non-Resident Indians. In simple terms, individuals who are living abroad for employment should open an NRI account. Furthermore, the account can be maintained either in the rupee, or any currency, like the dollar, pound, euro, sterling and so on. An NRI can easily, maintain, hold, open and maintain various banks accounts with an authorised bank. It makes easier to deal with the foreign exchange. 

Know the Different Types of NRI Accounts

Non-Resident External (NRE):

One of the different types of an NRI bank account is Non-Resident External (NRE). This account type can be opened as current, savings, fixed or even recurring deposit account. Maintained by Indian Rupees (INR), all the deposits of foreign exchange done at NRE account are converted to Indian Rupees by the banks at the buying rate. One of the greatest benefits of NRE account is that the interest earned from this account is completely exempt from the income tax. Furthermore, this account type can be held jointly by more than one NRIs.

Non-Resident Ordinary (NRO):
The funds or money held in Non-Resident Ordinary (NRO) are in Indian Rupees just as NRE account. Furthermore, this account too can be savings, fixed, term or current. A regular bank account too can be converted into an NRO account in case the person becomes an NRI. The main difference between NRO and NRI account is that a person cannot repatriate money from the NRO account. In simple terms, the funds held in the NRO account has to be used for local payment and in Indian Rupees.

Foreign Currency Non-Resident (FCNR)

Another type of NRI account India is Foreign Currency Non-Resident (FCNR). This account can be opened in the form of term deposit. The maturity of this account ranges from one to three years. The currency used in this account is US dollars, Euro, Pounds Sterling and Japanese Yen. All the interest and principal earned on this account can be transferred outside India in the same currency or convertible currency. FCNR account can be opened either jointly with a close relative or survivor basis.

These are the top three types of NRI accounts. Choose the one that best meets your needs.

All You Need to Know About Portfolio Investment Scheme

Non-Resident Indians are always looking for investment options that will prove beneficial in the long run. If you are too one among them, then portfolio investment scheme is an answer for you!

What is Portfolio Investment Scheme?

Portfolio Investment Scheme (PIS) is basically a Scheme of Reserve Bank of India that helps both Non-Resident Indian (NRI) and Overseas Corporate Body (OCB) to sell and purchase shares and convertible debentures of Indian companies on a documented stock exchange. It allows NRIs to invest in the shares of the Indian companies in the secondary market, under non-repatriation and repatriation basis. It covers a number of securities like bonds, stocks and other types of investment vehicles.

You should know, Portfolio Investment Scheme is all about reducing risks than growing returns. An investment can be easily made under both repatriation and non-repartition basis, but then it is important for the NRI to open a Non-Resident Rupee (NRE) and Non-Resident Ordinary Rupee (NRO) with any of the bank. The sale that is acquired of non-repatriable investment should be collected in NRO account only. Furthermore, it is important for the NRI to have a separate bank account, especially for PIS purposes.

Some of the key features of the NRE portfolio investment in India includes:

• When it comes to investments, it is essential for an NRI to have a PIS account. The same account will be used for investments in the secondary market on repartition basis. When it comes to investments on non-repatriation basis, it is vital to do it directly from the NRO savings bank account. Non-Resident Rupee (NRE) PIS account is independent which can be used by NRIs for their needs. All the sale and purchase transactions are well captured and are further reported by your bank to the RBI.

• It is wise to know that NRIs cannot hold more than one PIS account with multiple banks. An NRI should submit all the original sale and purchase contract notes within 24/48 hours of contract execution to the designated bank with whom your PIS account is maintained.

• Another vital aspect an NRI should know is that all the shares that are purchased on the stock exchange under the portfolio investment scheme cannot be in any case should be transferred by way of sale under private arrangement. Furthermore, it should also not be given as a gift to a person who is a resident of India or outside India without prior permission from the RBI.

• NRIs that hold valid PIS permission can trade in convertible debentures and shares of the Indian companies that are recorded on recognised stock exchanges, whether on repatriation or non-repatriation basis.

• Your PIS account can be operated by your friend or relative only when you avail the mandate of power of attorney facility. This makes easier for your relative or friend to conduct the transactions on your behalf.

Get to Know Different NRI Investment Options

Indians who have settled abroad have the right to invest in India. There are a number of safe NRI investment options in India. However, before you invest, it is of paramount importance to understand the tax implications, including both capital gains tax and income tax. One of the major reason why Non-Resident Indians (NRIs) prefer investing in India is that of the higher returns on conversion. NRIs are eager to invest in India considering the fact it is emerging country. Mentioned is the list of the investment options for NRIs:

Direct Equity:

If you are someone who wants higher returns on your investment, then Direct equity is the answer. Investing in stock markets is one of the best options for lucrative NRI investments. However, it is wise that you keep track of the stock market for best results. These markets are sensitive and observing it regularly is of paramount importance. In order to invest in the same, all you need is bank, trading and demat accounts. As you are an NRI investor, you might even have some special services.  You either have the option to invest for a short-term or long-term. The returns depend on the investment and trading strategies you use. You should be prepared for any risks as the prices tend to fluctuate in the stock market.

Mutual Funds

Another NRI investment option is mutual funds. Mutual funds do the work of safeguarding your assets. However, before investing, it is wise to check the asset management’s company’s rules. A lot of mutual funds offer NRIs with Systematic Investment Plan (SIPs) that further allows an investor to break the total investment into either quarterly or monthly investments. It is wise to invest on the repatriable or non-repatriable basis. Have a Non-Resident Rupee (NRE) or Foreign Currency Non-Residential Account (FCNR) account with a bank in India, if you plan to invest on a repatriable basis. In this, the investment money is sent through usual banking channels. While if the investment is made based on non-repatriation, it offers funds from the Non-Resident Ordinary Rupee (NRO) or NRE/FCNR account of the investor. 

Realty Investment

Real estate investment plays a major role in ensuring you get high returns. As compared to direct realty investment, Real Estate Investment Trust (REIT) is more liquid. An NRI can invest in either commercial or residential property, but cannot invest in agricultural lands.

NRE / NRO / FCNR Fixed Deposits
An NRI can easily invest money in a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. It is one of the most considered NRI investment in India. The money held in these two accounts is in rupees. An NRI can access this as a term deposit account, a normal savings account or even current account. You can even consider investing in FCNR account in which the money is deposited in foreign currency.

Steps to Open an NRI Account from Overseas

When it comes to banking, there are innumerable options for every kind. An Indian resident staying abroad can easily rely on Non-Resident Indian or NRI banking. It is a great way to ensure your banking needs are well taken care of despite staying overseas. An NRI account is definitely a handy tool. When it comes to opening an NRI account, it becomes difficult to do so as the NRI requires visiting the branch for the same to get done with the account opening formalities. To make it easier, NRIs now can easily open their account at the convenience of their homes by following these steps:

Download the Form:

The first step towards opening your NRI account is by downloading the form from the bank you want. These are offered by a number of banks offering NRI services, and hence you are advised to read the benefits offered with the NRI account as it tends to differ from one bank to another. There are some banks who also offers the option of filling up the form online itself.

Know the Documents Needed:

Before the account is opened, an NRI has to submit the necessary documents. It majorly includes approved the proof of identity, proof of address, proof of NRI or PIO status. It should be in the form of passport copies with a valid visa or PIO card.

Additional KYC:

There are some banks in which an applicant may have to fill up additional KYC format in order to disclose the tax residency status and all the other related under the CRS and FATCA requirement. This further requires the applicant to submit additional documents and proofs along with the account opening form.

Attestation:

It is vital the documents you submit are attested by the Indian Consulate or overseas bank or should be notarized by a foreign notary. Apart from this, an applicant also has to provide additional proof with self-attestation.

Dispatch:

To ensure the form and the other documents reach to the bank safely, it is of paramount importance to dispatch it using the right address. In some countries, banks also offer PO Box service in which NRI can easily drop the application in the post box with the right PO box number.

Certain Points to Remember:

To get the best NRI services in India, you can get in touch with the banks to get more details. The experts are glad to be of your help in more than one way. The experts offer all the assistance needed to complete the account opening formalities.