What Are The Features And Benefits Of NRE Accounts?

by Giselle Lobo Writer & Blogger

Money is a necessity for everyone and a saviour, especially in unfavourable conditions. You should have money to meet your requirements and fulfil every need, even during emergencies. It is safer to remain prepared for most financial conditions and start saving from today. Whether you live in India or elsewhere, you would always require money for meeting daily expenses.

A Non-Resident External or NRE account is a rupee account to facilitate NRIs to transfer funds to India. Funds generated overseas in any other currency get transferred to India in Indian Rupees in this account. Here are the features and benefits it offers:

Indian Rupee account: The Non-Resident External Rupee account is an Indian Rupee account. The initial funding generally happens through fund transfer from any other NRE or NRO account held by the NRI or by depositing foreign currency or traveller’s cheques available.

Joint account: You can open and transfer money from the account, keeping in mind the NRE account interest rates. Only NRIs can hold a joint account. Having it jointly with resident family members is not permissible. The account holder can issue a mandate authorising a family member to operate the account in their absence.

Nomination facility: The account also allows a nomination facility, where you can repatriate both the principal and interest components. It enables you to access services such as savings account, current account, fixed deposits, etc.

Currency for deposit and withdrawal: You can deposit money in foreign currency and withdraw it in Indian currency when you open NRE account. Another point to note is that the rupee account balances are subject to risks of currency exchange.
Free from taxes: Taxation rules do not apply to the Non-Resident External account. You are exempt from wealth tax, gift tax, and income tax.

For choosing the best NRE bank account, you should choose a bank that offers service in the country of your residence. It can help when you need urgent customer support. Besides, opt for a bank that provides minimum account balance requirements and attractive interest rates on deposits in the account. These accounts work like regular savings accounts.

You will also get an international debit card for withdrawals. Learn about the charges and costs attached. In all, you must opt for ease of operations, such as simple documentations, a robust ATM network in your country of residence, customer-friendly mobile and net banking facilities, and an affordable money transfer solution. Compare based on these points while choosing the best NRE savings account.