An NRE bank account is the go-to option for NRIs wanting to send funds to India. But what makes NRE bank accounts so popular among NRIs? Read this post to find out.
Most NRIs need an Indian bank account where they can send their foreign earnings. An NRE (Non-Resident External) bank account helps them achieve this objective. It is a type of Indian denomination account where NRIs can deposit a host of foreign currencies such as USD, GBP, EUR, CAD, AUD, JPY, and more.
An NRE bank account is also a preferred option for NRIs who want to provide their families with easy access to their foreign earnings. Take a look at some of the other reasons why NRIs prefer sending their foreign earnings to their NRE account.
- Multiple Account Types
An NRE bank account could be a savings account or a term deposit account like FD (Fixed Deposit) or RD (Recurring Deposit). An NRE savings account is just like standard savings account with no restrictions on deposits and withdrawals.
But NRE FD and NRE RD are deposit accounts that earn risk-free returns over a fixed maturity. As compared to the NRE savings account, these deposit accounts offer higher returns.
- Tax-Free Returns
One of the biggest USPs of an NRE bank account is that they are tax-free. No matter if you open a savings account or a deposit account, the principal amount and the interest income is fully tax-exempt for NRIs.
This makes NRE FD and NRE RD excellent investment choices in India. Even NRIs who simply want to park their foreign earnings can open an NRE savings account and earn tax-free interest on the maintained balance.
- Hassle-Free Repatriation
NRIs also like to send money to NRE account as they are fully repatriable. The principal or the deposit amount, along with the generated interest income, can be fully repatriated to the account holder’s current country of residence without paying any additional fees.
Most other savings and investment options in India have annual repatriation limits, and some of them are also subject to high taxes if the returns are transferred to a foreign country.
- Mandate Account Holder
NRIs can also select a mandate account holder for their NRE bank account. With this facility, they can let a family member, relative, or friend in India access the account on their behalf. The mandate holder also receives a cheque book and debit card for complete convenience.
For instance, NRIs who send funds to their family in India every month can transfer the funds to their NRE account, which can then be withdrawn by someone from their family who is assigned the mandate status.
- Access Online Banking Facility in India
Want to pay insurance premium or utility bill in India? An NRI account like NRE can help. Most top banks in India now have user-friendly online portals from where NRIs can make online payments and access a host of other banking facilities.
Some of them also have their mobile apps with the help of which NRIs can access many different types of banking services on-the-go even when they are in a foreign country.
Experience the Best of NRI Banking with an NRE Account
NRIs looking for a bank account in India can consider opening an NRE bank account for all the valuable features and benefits it offers.
Compare the interest rate and features offered by some of the top banks to select the best NRE account for sending funds to India.