Many of us try to go abroad due to better opportunities and hefty pay packets. Before deciding to settle down abroad as an NRI, you must find an ideal bank account to manage your finances. Unlike resident citizens of India, you, as an NRI, cannot have standard savings accounts in Indian banks. Therefore, the banking requirements are different for you. Moreover, when you start living overseas, most of your income will be in foreign currencies.
Keeping your interests (including savings and investment requirements) in mind, Indian banks offer specific bank accounts to NRIs. These bank accounts come with advantages like repatriation and investment benefits for the account holders.
For example, IndusInd Bank offers the Indus Exclusive savings account that is specifically designed for NRIs. Such bank accounts and banks provide you with top-of-the-line benefits along with a seamless banking experience.
Here is a list of banks and types of accounts you can open after moving abroad.
There are three types of bank accounts for NRIs offered by Indian banks.
Non-Resident Ordinary (NRO) Account
This account is a popular way for many non-resident Indians to manage their deposits, recurring or fixed deposits or income earned in India like dividends, pension, rent, etc. This account will allow you to receive funds in either Indian or foreign currency. Most importantly, you can hold this account jointly with any of your family members residing in India. Additionally, when you move overseas, your resident bank accounts become dormant over a period of time. However, you can convert them into NRO accounts to continue using them.
Non-Resident (External) Account
You can open this rupee-dominated bank account to facilitate deposits of foreign currency earnings. This means money transferred to an NRE account in any foreign currency is converted to the Indian rupee. The NRE account permits you to hold and maintain foreign currency earnings in the Indian rupee. This account exempts tax on your earnings from a foreign land. You can repatriate all funds, including interest earned at any point.
Foreign Currency (Non-Resident) Account
NRIs and PIOs are eligible to open an FCNR account with an Indian bank in any foreign currency. This account allows you to keep your deposits in foreign currency and the deposits and the interest earned on them are fully repatriable or transferrable on maturity. With an FCNR account, you can earn high risk-free returns on your investment through the fixed-term deposit.
If you opt for IndusInd Bank’s Indus Exclusive Savings Account, you will avail of some tailor-made benefits such as a Relationship Manager to take your banking experience to a whole new level, free ATM cash withdrawals, doorstep banking and mobile banking. Other than IndusInd Bank, you can open an NRE or NRO account with the State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, Axis Bank, etc.
