Aspects About Nre Accounts You Should Know

By Author: shashank Bhaskar
Total Articles: 63
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Many move abroad in search of a better future. Some decide to make the most of the opportunities provided by their organisations, while others migrate to foreign lands at their expense. You can decide to seek citizenship in the country you relocate to or move back to India after a few years. Making money and creating savings is the primary reason people choose to go abroad.
But how can you manage your finances in India? The answer lies in Non-Resident India or NRI Accounts. If you have moved to a country with a stronger currency than India, you can open a Non-Resident External or NRE Deposit. Here are its significant aspects.
Features and Benefits
You can use the sum in your NRE Account and open NRE FD Account. The features include:

You can earn higher interest rates, which in turn helps you make higher returns in the long run.
The interest you earn gets paid out in the foreign currency in which you open the FD.
You can make partial withdrawals on your NRE FD at any time ...
... after completing a minimum term of a year.
Most banks also provide overdraft facilities on NRE FDs, and you can get it for approximately 90% on your FD only if you choose a good, RBI-authorised bank for your NRI banking needs.
After completing the minimum FD tenure, you can repatriate your entire FD, including the principal amount deposited and the interest earned on it, anytime.
The best part about NRE FD is that you need not pay any taxes for the amount invested or the interest earned per Indian tax laws.

An NRI FD can be opened jointly with another NRI, and you can also register one or more nominees when you open NRE FDs.
Opening process
Opening NRE FD Account is simple. It can be done in different ways:

You can open the FD directly by utilising the Online Banking facility provided by your bank and transferring funds from your NRE Account to an overseas account.
You can also open the FD directly when you visit India by going to your preferred bank and presenting foreign currency notes in cash or traveller’s cheques. Generally, there are no restrictions on the foreign currency amount you can carry when you travel to India, but you should check the maximum amount you can carry.
NRE FDs can also be opened by transferring funds from your existing NRE, or FCNR Deposit opened in any other bank.
You may also directly remit the FD amount to the bank of your choice.

Eligibility criteria and interest rates
To be eligible for an NRE FD, you need to be an NRI of Indian nationality or a Person of Indian Origin. This is the essential requirement. The NRE FD rates differ between banks and may change monthly as per RBI regulations.