Moving abroad throws open new avenues of growth on personal and professionalfronts. However, it also comes with certain financial challenges that require prudent money management. As a non-resident Indian (NRI) living overseas, making wise savings and investment choices is key to securing a stable future. This is where a specialised bank account, such as an NRE account, can make all the difference.
Table of ContentsToggle
What is an NRE Account?
NRE account is a special savings account meant just for NRIs and PIOs. In case you are wondering what is NRI, it refers to Indian citizens who live and work abroad temporarily. It allows you to deposit Indian rupees as well as foreign currencies which get converted to INR.
NRE accounts are versatile as they can be opened as current accounts, recurring accounts, and term deposits. So whether you work overseas short-term or plan to live abroad more permanently, an NRE account is designed to meet an NRI’s banking needs globally.
NRE accounts offer some very attractive benefits for NRIs that give your savings and income a noteworthy boost:
Higher Interest Rates
Banks usually offer higher interest rates on NRE accounts than regular resident savings accounts. For instance, IDFC FIRST Bank offers highly competitive and one of the best interest rates on NRE savings accounts, which are calculated on daily balances and paid out monthly. So your savings can grow faster.
Another big benefit is that the interest acquired on NRE accounts is exempted from tax in India. So you get to keep all the money you earn in interest, unlike regular accounts, which deduct TDS. The overall tax exemption makes NRE accounts excellent for boosting long-term savings.
You can open joint NRE savings accounts with other NRI account holders, providing convenience and flexibility for families living abroad. Accounts can be operated jointly or individually based on agreed terms and conditions.
A key attraction of NRE accounts is that the funds are fully repatriable and portable without any restrictions whatsoever. You can freely transfer money back to an overseas account when required. This level of liquidity and transaction convenience gives NRE account holders confidence that their money is within easy reach for use when needed.
An added benefit is depositing funds in foreign currencies and withdrawing Indian Rupees from overseas ATMs/branches. So, NRE accounts make it easy to save in various global currencies.
Who Can Apply for an NRE Account
While NRE accounts are meant for NRIs and PIOs, here’s a quick look at Indians who can apply:
- NRIs/PIOs working abroad
- Overseas citizens of India
- Seafarers on international ships
- Students pursuing education abroad
- New emigrants moving abroad for work
So, if you or your family members are working, studying or living overseas, opening an NRE account should be on your to-do list.
Give Your Savings a Boost with IDFC FIRST Bank
As India’s leading new-age bank, IDFC FIRST Bank offers globally competitive NRE savings account interest rates and convenient digital banking services. You can manage your account online via net banking or mobile app and access your money using the debit card anytime, anywhere.
The Bottom Line
So, if you are an NRI looking to grow your income and savings tax-efficient, hassle-free manner, then opening an NRE account with IDFC FIRST Bank would be smart. The higher returns, tax benefits and seamless transactions will give your finances the desired boost!
Lareal Young is a dedicated healthy lifestyle specialist with a passion for promoting overall well-being. Armed with expertise in nutrition, fitness, and holistic health, Lareal inspires positive transformations in individuals seeking a balanced and vibrant life. His personalized approach and commitment to sustainable habits make him a trusted guide on the journey to optimal health.
Spread the loveYou’re browsing through comments on your favorite website and spot a user with the odd handle “iamnobody89757.” It
Spread the loveI. Introduction A. Brief Overview of Badcock Bunk Beds Badcock Bunk Beds have established themselves as a prominent