Features and Benefits of an NRO Account
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Key TakeawaysAn NRO account is a must-have if you are an NRI earning income in India from rent, dividend, interest, etc. Read on to know more about an NRO account benefits.
What is NRO Account?
Non-Resident Ordinary or NRO Accounts are savings, deposits or current accounts. NRO Accounts are held by NRIs to manage their income earned in India. As an NRI, you can deposit money in your NRO Account in Indian Rupees and other foreign currencies.
Features of NRO Account
The following are the salient Features of NRO Accounts:
- You can use the NRO Account to deposit your income from your Indian income sources, such as rental income, Mutual Fund dividends payment, FD interest earnings, etc.
- You can deposit the funds in INR and foreign currencies. Any foreign currency deposited into the account is automatically converted at INR at the applicable currency conversion rates.
- You can freely repatriate or transfer the interest income earned on your NRO Account deposits whenever you like. There are no limitation on repatriating the interest income.
- You can open an NRO Savings Account or an NRO Fixed Deposit Account jointly with a resident Indian family member on a former or survivor basis.
- You can enjoy a higher rate of interest on NRI Savings Account balances as well as NRI Fixed Deposits, and get preferential currency exchange rates while transferring money internationally.
Benefits of NRO Account
There are several incredible benefits of NRO accounts. Here are some examples.
- Your NRO Account is the ideal place to save your foreign earnings and park your Indian income sources. You can easily access this account to manage your Indian expenses whenever you are in India.
- You can finance emergencies by pledging NRO Fixed Deposits as collateral against loans. By Pledging your FD as collateral, you stand to obtain loans at lower interest rates.
- The Joint Account facility allows your dependents in India to manage your Indian expenses on your behalf, ensuring all your financial obligations in India are met through the funds parked in this account.
- You can use your NRO Account to remit balances of up to USD 1 million (or its equivalent in other currencies) per financial year, along with your other eligible assets.
- Attractive rates: DBS Treasures offers higher interest rates on NRI savings accounts and preferential rates on remittances.
- Repatriate funds: If you have sold a property or liquidated investments and want to send the money to your country of residence, you can deposit the funds in an NRO account and transfer it abroad (up to USD 1 million a year). You may have to pay income tax in India and fill out repatriation forms.