The key highlights of a Non-Resident External (NRE accounts) are as follows: This is a safe way to land your foreign income earned outside India.
The money transfers are free and at competitive exchange rates
You can enjoy full repatriable of your money and earn tax-free interest in India.
You can also get a free mandate card and cheque book for your family in India and this can help you provide them anytime anywhere access to your account.
Now lets us know what exactly is an NRE account – an NRE or a non-resident external account is a saving account maintained in where you invest your foreign income earned outside India.
Why should one opt for an NRE account?
An NRE account lets the account holder enjoy tax-free interest and full repatriable of funds and also because of the fact that this is the most convenient way to use your foreign earnings in India.
Let’s dive right into the other benefits and characteristics if an NRE account
No interest amount that you have earned in India on of your foreign money is taxable.
All the funds in an NRE account are fully repatriable and they are not charged for repatriation.
The minimum monthly account balance needed to maintain an NRE account is just Rs 10,000.
With an international Debit card you can access your bank account at over 11000 ATMS and over 3000 branches all over India and phone and the 24×7 net banking as well.
The interest rates that are calculated are done on daily closing balances at 4% per annum; the interest is paid to you half yearly in the month of June and December.
The money transfer service of your foreign money to the banks or financial institutions in India is safe secure and easy. You can transfer your money to over 100 banks in India and you can also track your transfers.
You can hold a joint account with another NRI as well.
There are a lot of other benefits as well, there are free cheque books and ATM cards for the mandate holder and what’s more there are also handpicked exclusive offers that are designed especially for the NRE account holders that cater to all your need when you are in India and abroad. Not to forget the free PO Box facility that is available to send documents.
The monthly average balance that is required to maintain an NRE account is just Rs 10,000 at an account level and you have to keep a minimum balance of Rs 25000 at a customer id level, if in case for some reason you are not able to maintain this balance at a savings bank account level services charges will be levied on your account.