Sending money to India? Benefits of opening an NRE Account.

 There are many NRIs who send a part of their income back home to India regularly. Be it for family expenses, investments, or payment of bills, many NRIs open an NRE Savings Account to manage expenses back home in Indian rupees. Non-Resident Indians can open an NRE Savings Account, deposit money in the currency of their residence and it can be withdrawn in Indian currency from the account. What’s more, the amount is fully repatriable. An NRE Savings Account is one of the best ways to send money to India because there are many benefits attached to it. Here are some of them.

 

Tax-free returns

One of the best benefits of an NRE Savings Account is that the interest earned on the principal amount is non-taxable in India. You can earn lucrative returns without having to pay extra tax. It’s a win-win!

 

Easy transferability to a foreign account

The principal amount and the interest in an NRE Savings Account are easily transferable to an account in any foreign bank without any restrictions. This allows unrestricted flow of your money. So, even if you want to transfer some of the money from your NRE Savings Account back to your country of residence account, it’s possible to do so easily.

That’s not all. NRIs can also transfer their funds from one NRE Savings Account to another or even an NRO Savings Account within India with ease. 




 Investments

The Indian market is booming and NRIs are always looking for an opportunity to invest some of their money back home. This becomes possible with an NRE Savings Account.

This account can be used by NRIs to invest in the Indian equity market. NRIs with an NRE Savings Account are known to invest in mutual funds in India and gain lucrative returns on their investments. 


Allows joint account holding

The best part about an NRE Savings Account is that you can share access to your account with a dependent. You can also have a joint NRE Savings Account with another NRI.

However, you can only get a resident Indian to become a joint account holder of the account if they are related to you.


Easy withdrawal

You can use an international debit card to withdraw money from this account at any point. You can also avail of mobile and internet banking facilities to make your transactions smoother. 


Competitive interest rates

An NRE Savings Account offers competitive interest rates which are non-taxable in India. So even if an NRI is not looking to send money to India, they can still consider opening an NRE Savings Account to earn consistent returns on their savings in India. 


Easy conversion

If an NRI is visiting India for a short period, they can easily access their account as it is. However, if an NRI is returning to India for good, they can get the NRE Savings Account converted to either a Resident Foreign Currency (RFC) Account or regular resident savings account without any hassles.


Free transfer of funds to India

Usually, NRIs use remittance services to transfer money to India. But remittance comes with added costs and conversion charges. With an NRE Savings Account, NRIs can deposits funds in India free of cost and also earn returns in the form of interest. 


Low minimum balance requirement

Every account has a minimum balance requirement, so does an NRE Savings Account. Although the minimum balance requirement differs from one bank to another, it’s usually pretty low and very easy for NRIs to maintain considering the exchange rate.


SBM Bank India has a diverse range of offerings for Non-Resident Indians, including an NRE Savings Account. You can earn up to 5% p.a. with a monthly payout of interests with the account. Apart from that you also get preferential pricing on a host of products and services, competitive forex rates, premium privileges, personal concierge, and a dedicated relationship manager. Your SBM NRE Savings Account also comes with an international debit card with the finest privileges that will complement your lifestyle.


So if you’re looking for one of the best options to send money back to India, an NRE Savings Account with SBM Bank India is your best bet.

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