6 NRE Account Benefits that You should Know
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Key Takeaways: An NRE account offers several benefits including the facility to easily and quickly remit foreign earnings to India. Read on to know more about an NRE account benefits.
Even though NRIs live abroad, they have strong family and financial ties back in India. An NRE account helps NRIs easily manage their financial commitments in India, be it family expenses, investments or utility bills. You can deposit foreign currency earnings in your NRE account and withdraw in rupees to manage Indian expenses. The good thing is you can fully repatriate the amount you hold in an NRE account. Let us look at more NRE account benefits in this article.
Benefits of NRE account
Here are six benefits of an NRE account:
- Exempt from Taxes: The interest earned on the principal amount in an NRE savings account is tax free.
- Free and easy transferability: If you wish, you can transfer both the principal amount and the interest from an NRE account to an account in a foreign bank without any restrictions. You can also transfer funds quickly from an NRE account to another NRE account or an NRO account.
- Useful for Investments: You can use funds in this account to make investments in India. Whether it is equity or debt mutual funds, you can get started seamlessly.
- Joint Account Holding: If both the account holders are NRIs, you can opt for joint account holding. You can also mandate a resident family member to operate the account on your behalf. However, please note that you can have a joint resident Indian account holder only on a ‘former’ or ‘survivor’ basis. This joint holder resident must be related, e.g., a parent.
- Easy Withdrawal: With the help of an international debit card, you can withdraw money 24*7 from these accounts. You can also avail internet and mobile banking services that allow you to manage your money online.
- Competitive Interest Rates: NRE accounts offer attractive interest rates. A DBS Treasures NRE account offers higher interest rates on NRE savings accounts.
What happens to your NRE account if you become a resident Indian again?
In case of a short visit, the NRE account can continue as it is. However, if you plan to become a resident Indian again, you would need to re-designate the NRE account to a resident account or a Resident Foreign Currency (RFC) account.
Final Note: NRE accounts bring a lot of benefits to NRIs, helping them manage their India financial affairs more efficiently and seamlessly.
Would you like to avail preferential rates on remittances to India? With DBS Treasures, you can have access to better rates and faster international money transfers. Know more!
*This article is for information purpose only and is not a tax advice by DBS Bank. Sound professional advice should be taken before making any investment decisions. Bank will not be responsible for any tax loss/other loss suffered by a person actng on the above.