Non-resident Indians would have savings and income in foreign currencies like dollars, euros, pounds, etc. Many have banking and investment needs in India for which they require a Bank Account. Banks and other financial institutes provide NRI Accounts. These offer services like taxation, currency exchanges, remittances, etc.
What is an NRI Account?
Every bank wants to increase its popularity and improve the quality of services to attract more customers. They want to include as many investors and Loan borrowers as possible so that they can suggest to their colleagues, relatives, and friends about their satisfaction with the banking service. Nowadays, they offer premium features and facilities for customers with access to exclusive products.
All Fixed Deposits earn simple interest on a lumpsum principal investment at a pre-decided interest rate for a specific duration. The interest you make does not add to the principal amount. Hence you do not earn interest on the combined amount. Deposits earning a compound interest invest a pre-decided lump sum amount at a particular interest rate for a precise tenure.
With the rise of digitisation, every banking aspect has gone online. You no longer need to deal with paperwork or carry cash physically. Every transaction happens online. To increase convenience, banks issue Debit Cards, which give you access to your Bank Account electronically. You may either use the card to swipe and make transactions physically or link it online to make digital payments.
Carrying cash for minor transactions is better. But when it comes to huge payments, it becomes risky and inconvenient. Banks recognise this problem and have various banking cards for cashless transactions. If you are new to plastic money, you may confuse Debit Cards and Credit Cards. Although they involve similar characteristics, they have a fundamental difference. Credit Cards allow you to borrow from a line of credit and make payments regardless of your account balance.
How you handle and transact your money changes when you move to another country. Your earnings and savings are stored in foreign currency. This makes managing your banking and investment formalities in India becomes slightly challenging. To effectively cater to such concerns, it is wise to open a Non-Indian Resident or NRI Account. Many banks offer this facility to global Indians.
Investing in Mutual Funds allows you to put your money to work. It helps you build your wealth efficiently. However, you need to look over specific aspects to make this possible. This includes fine-tuning your Mutual Fund portfolio. It enables you to align your investment objectives better. It saves you from potential risks and maximises your returns considerably. So, here are four practical ways to do so effectively:
Investments are essential to building your savings for the future. However, you need not look far for the options. Most investors are cautious about their finances generally. While Mutual Funds are lucrative, they require a thorough market understanding and a high-risk appetite. Hence, banks have a safer alternative as Term Deposits. They are the sound alternative for growing your wealth gradually.
If you have a financial requirement that needs to be met immediately, Personal Loans can help you. It is an excellent credit facility that can be availed of by completing a simple application procedure online. Just fulfil the essential eligibility criteria, upload the necessary documents, and you are ready.
Several Indians are migrating abroad for better career prospects and a finer standard of living. When you relocate abroad for education or employment, your citizenship status changes from an Indian resident to a non-resident Indian. As you gain an NRI status, different banking rules apply. The most important rule is you need to operate finances through an NRI Account.
