Benefits of NRI Savings Account You Need To Know

Working in a multinational company is every Indian student's dream. However, working in countries like the USA, UK, etc is one step ahead. Not many can realize this dream. But for those few selected who can make it big and end up working in these countries the task is not yet complete. Living the American dream is not as easy as it sounds even after getting there. There are a bunch of things that need to be taken care of. One of those things is financial planning. You cannot simply go there and start earning. There are few banking formalities which are required to be completed. As per the guidelines of the Foreign Exchange Management Act, it is illegal for Non-Resident Indians to use savings account in their name in India. It is necessary to convert all your assets to a Non-Resident rupee or Non-Resident Ordinary rupee. If you continue to use the savings account in the home country then you are exposing yourself to huge fines.

What is the NRE Savings Account?
It is an Indian rupee-denominated account. This account can be a savings account, current account, recurring or fixed deposits. Using this account you can easily transfer funds to your foreign bank account. The same account can be used for investment purposes once you link your NRI account.

Benefits of NRI Savings Account:
Repatriation Benefit: One of the most attractive benefits of the NRI savings account is repatriation. NRE and NRO savings account allows seamless movement of funds abroad. You can repatriate both principal and interest amount. NRE accounts are fully and freely repatriable whereas NRO accounts are repatriable after payment of applicable charges.
Tax Benefit: Another attractive feature of an NRI account is the tax exemption. The interest earned on the NRE funds is complete tax exempted. Savings in NRO account are subject to TDS as per the Income Tax guidelines. You have the option of transferring money from your NRO account to your NRE account after payment of applicable taxes.