Need help understanding NRI Accounts?

 Just like there are various types of bank accounts for Indians living in the country, there are different types of NRI accounts for Indians living abroad to help manage their money back home in India. To understand the different types of bank accounts an NRI can open in India, first, let us understand who qualifies to be an NRI. When an individual stays out of the country for at least 120 days in a year and less than 365 days in the previous 4 years, their residential status changes to Non-Resident Indian (NRI).

Any NRI is qualified to open an NRI account with various banks in India. Banks such as SBM Bank India offers a range of NRI Savings Accounts with competitive interest rates and many more benefits that help make managing funds back home easy. Based on their investment and financial needs, NRIs can opt for any of the following accounts.

NRE Savings Account

A Non-Residential External Savings Account or NRE Savings Account is opened by NRIs to maintain earnings from their country of residence. However, these earnings are held in Indian rupee denominations. Many NRIs wish to send money back home to their families, and an NRE Savings Account is perfectly suited for this purpose.

For example, an NRI residing in Canada would remit a certain amount every month into their NRE Savings Account and his/her family can access the money in INR. SBM Bank India offers an NRE Savings Account that helps NRIs park their overseas income in India and offers many benefits that would help grow their money over time.

NRIs stand to earn up to 5%* p.a. with a monthly payout of interests and also get to invest in a plethora of Indian investment solutions which helps them leverage the diverse wealth opportunities their home country has to offer.

NRO Savings Account

While an NRE Savings Account helps NRIs park funds earned from their country of residence in INR, a Non-Resident Ordinary Account or NRO Savings Account helps them save and manage income earned within India in INR denominations. This account is usually opened to deposit income earned through rent, dividends, etc.

For example, if an NRI residing in France has leased an apartment in Mumbai, the tenant of the said apartment will deposit the rent money into the owner’s NRO Savings Account.

SBM Bank India also offers an NRO Savings Account packed with lucrative returns and a host of premium privileges. NRIs can enjoy up to 5%* p.a. with a monthly payout of interests, multiple investment options to grow local earnings, competitive forex rates, and a suite of lifestyle privileges.



FCNR Account or FCNR Deposit

A Foreign Currency Non-Resident Account or FCNR account helps Non-Resident Indians and Persons of Indian Origin (POI) deposit money into their accounts in the currency of their country of residence. The money in the account can be held in the currency of choice as prescribed by the RBI.

You can choose to deposit currencies earned in US Dollar (USD), Canadian Dollar (CAD), Australian Dollar (AUD), Singapore Dollar (SGD), Hong Kong Dollar (HKD), Great Britain Pound (GBP), Euro (EUR), Japanese Yen (JPY) and Swiss Franc (CHF) in your FCNR Account.

Any NRI with earnings in the above currencies can open an FCNR account and deposit the money without worrying about conversion. If an NRI earns in any other foreign currency, it will be converted into one of the above. SBM Bank India offers an FCNR Deposit with lucrative returns and many benefits.

Advantages of NRI Accounts

Now that we have simplified the different types of NRI Accounts, let us dive into the various benefits that these accounts have to offer. One of the most crucial benefits of having an NRI Account is access to investing in a diverse range of investments and portfolio investment schemes. NRIs can also participate in stock market trading with their NRI Accounts.

With an NRE Savings Account and an FCNR Account, NRIs can enjoy tax-free returns on their deposits. What’s more, they also stand to enjoy high returns with negligible risks.

SBM Bank India’s Global Indian Programme offers a range of financial services, opportunities, and privileges crafted especially for the NRIs. You can check them out here and choose from a variety of offering to help manage your funds in the best way possible.



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