Why is it important to have an NRE/NRO Savings account for an NRI?

The NRE and NRO accounts are meant for NRIs to deposit abroad money into Indian accounts. There are many banks which offer NRO/NRE Savings account Services.

They hold utmost importance when NRIs want to invest their money or send funds back to India. Here are some of the features to help you understand the importance of NRE and NRO savings accounts for NRIs.

Importance Of NRO Account For NRIs

NRO savings account is destined to serve the purpose of depositing foreign money onto Indian accounts by converting it into Indian currency. You will have to inform your bank about your NRI status to help them process the required documentation to give you access to this facility.


Some of the points that explain the true efficacy of NRO accounts are:


● NRO savings account allows you to deposit any amount onto the account before moving to an abroad country.

● NRO accounts can also accept and deposit the money that you earn from Indian resources such as rents, dividends or investment returns.

● You can also deposit or transfer the amount from your NRE account to NRO account. Not just that, but you can also transfer the funds from overseas banks to this account.

● NRO accounts can also be opened in the joint format with Indian residents and give your partner the authority to carry out transactions.

● You can also repatriate money from your NRO savings account by paying some amount of taxes.


These are some of the points stating the efficient outcomes for NRIs to create an

NRO Savings account before heading abroad for handling their finances.


Importance Of NRE Account For NRIs

NRE savings account is meant for depositing funds to Indian accounts from abroad countries. The amount in your NRE account is completely repatriable; you can move the funds to/from India without many boundaries.


Here are some of the perks of NRE accounts that explain its efficiency for NRIs to handle their finances:


● The interest that you earn in your NRE savings account and NRE Fixed deposit is not liable for being taxed in India. Hence, you can freely repatriate your money and it gives you economic control over your finances.

● Mandate holders can be assigned with NRE accounts as well for managing the finances and other associated activities.

● By linking the NRE account with a trading or investment account, you can take part in Indian investment options.

● The minimum balance requirement for an NRE Savings account is not high, which gives you liquidity.

● You can also withdraw money without any hassle if you have an International Debit Card.


Now, you must be aware of the important aspects of NRE/NRO for opening an NRI savings account. So, get in touch with professional financial institutions or banks to gain more information about these accounts and know how to create them.

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