<p>When staying abroad do you wish to manage your finances in India? Well, it may sound odd but it is possible. A Non-Resident Indian (NRI) enjoys several perks related to financial opportunities. It helps them to stay connected with their roots while increasing investment options. However, the specific benefits of an NRI account may vary based on the type of NRI account and the bank you choose. In this blog, we will learn about all the common benefits of an NRI Account. Before that, it is vital to know what is an NRI account and the different types of accounts available for an NRI.</p>
<h2>What is an NRI Account and its types?</h2>
<p>An NRI account refers to an account opened by an NRI, a Person of Indian Origin (PIO), or an Overseas Citizen of India (OCI). It is an account opened with a bank or financial institution authorized by the Reserve Bank of India (RBI) to offer various banking services to an NRI. They can deposit their income which is earned either from India or from another country. An NRI can use these accounts to make investments, pay bills, or send money to their family in India. There are three types of an NRI account. It is vital to know about each account to choose the right one and avail yourself of all the perks.</p>
<h3>Types of NRI bank accounts</h3>
<p>An NRI can open different types of bank accounts in India. The account type depends on their liquidity and investment needs. Also, the account type opted for may depend on the transfer needs of the account holder. The types of accounts available for an NRI are as follows:</p>
<ul>
<li><strong><strong><a href="https://visament.com/blog/nre-account">NRE Account</a>:</strong> </strong>NRE stands for Non-Resident External. It permits an NRI to maintain the income earned abroad in Indian rupees. The amount can be easily converted whenever required. The interest earned on this income is tax-free and fully repatriable.</li>
<li><strong>NRO Account: </strong>NRO is an abbreviation for Non-Resident Ordinary. It allows an NRI to manage the income generated in India such as rental or dividends. It permits local transactions and is partially repatriable. The interest gained in this account is taxable.</li>
<li><strong>FCNR Account:</strong> FCNR's full form is Foreign Currency Non-Resident. This account is used to hold foreign currency deposits. FCNR accounts safeguard foreign currency against exchange fluctuations. The income in this account is fully repatriable and interest earned is free from tax.</li>
</ul>
<p>Knowing about the types of an <a href="https://visament.com/blog/nri-bank-account" target="_blank" rel="noopener"><em>NRI account</em></a> will allow you to select the most suitable account as per your needs. Now, let's learn about the common benefits of an NRI account.</p>
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<h2>What are the benefits of an NRI account?</h2>
<p>An NRI account offers limitless benefits to the account holder. From several benefits with tax to easy access to investments in India. The perks of an NRI account cannot be avoided if you are an Indian staying abroad.</p>
<h3>Repatriation Perks:</h3>
<p>The <a href="https://visament.com/blog/nre-account" target="_blank" rel="noopener"><em>NRE account</em></a> and FCNR account for full repatriation of the amount without any restrictions. It means that you can transfer both your deposit amount and the interest earned in your foreign bank account. You can also get repatriation perks with an NRO account but it will have extra terms and conditions.</p>
<h3>Opening Joint Accounts:</h3>
<p>NRI accounts provide the flexibility to open joint accounts. An NRI can open a joint account with a resident relative on a "former survivor" basis. Also, a joint account with a non-resident relative on an "either or survivor basis". It allows you to manage the finances together but for this, you need to submit a power of attorney.</p>
<h3>Store Funds Safely:</h3>
<p>NRI accounts are a safe and secure way to keep your funds in India. It reduces the risk of loss associated with keeping money in a non-interest-providing account. Also, eliminates the stress of theft that may occur when carrying cash.</p>
<h3>Tax Benefit:</h3>
<p>Both NRE and FCNR accounts offer crucial tax benefits. If you choose to open an NRE or <a href="https://visament.com/blog/fcnr-account" target="_blank" rel="noopener"><em>FCNR account</em></a> then you are free from paying the <a href="https://visament.com/blog/everything-you-need-to-know-about-nri-income-tax" target="_blank" rel="noopener"><em>income tax</em></a>. You don't need to pay any tax on the interest that you have earned from your deposit. However, in case you open an <a href="https://visament.com/blog/nro-bank-account" target="_blank" rel="noopener"><em>NRO account</em></a>, the interest received from your deposit will be liable for tax in India.</p>
<h3>Access to Indian Investments:</h3>
<p>NRIs can use the funds deposited in your account for investments. You can invest in various financial assets in India. The capital can be invested in various instruments in India. Such as mutual funds, fixed deposits, real estate, and many more.</p>
<h3>Convenience Benefits:</h3>
<p>NRI accounts provide a platform to conduct financial transactions in India. You can manage your finances from any part of the world by using the internet or mobile banking. It also provides an easy process for abroad transactions. Also, lessens the problems that come along with cross-border financial activities.</p>
<h3>Currency Conversion:</h3>
<p>With an NRI account, you can hold and transact in foreign currencies. It means that you can manage all your foreign income and savings without converting the currency every time. NRI account is flexible as it permits you to hold the amount in various foreign currencies. It eases managing finance for those NRIs who earn and spend in different currencies. The advantages of NRI accounts provide an easy way to manage finances well.</p>
<p>NRIs, PIOs, and OCIs can open an NRI account and avail of all these benefits in India. It can help them avail of the benefits and manage their finances abroad and in India.</p>
<p>An NRI account offers a lot of perks that are tailored to your unique financial goals and needs. However, choosing the right bank account is the most crucial decision for an NRI. It will make sure how you can manage, transfer, invest, and grow your funds in India. NRI accounts offer a complete solution for all your financial and investment needs. It allows one to open joint accounts, access online services, etc. which makes it a helpful and effective tool. Keep in mind that along with the perks, there are some disadvantages of an NRI Account as well. Choose the right type and apply for an NRI account to avail of all the NRI account benefits. Applying to open a bank account can be easy but applying for immigration services is not. No worries, you can always ask for assistance from an expert.</p>
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