If you are planning to move to the UK anytime soon, it’d be wise to apply for an NRE bank account in India. Check out this post to know some of the top benefits of this account.
Moving to a foreign country can be a daunting process. With so many things to take care of, it is very common to forget something as crucial as opening an NRE bank account in India.
Even after moving to a country like the UK, you might still want to access the banking services in India, and it is with the help of an NRE bank account that this could be possible. Take a look at some of the top ways in which this account can help even after you move to a foreign country-
1. Transfer Foreign Earnings to India
If you are looking for a hassle-free way to transfer your foreign income to India, an NRE bank account could be an excellent choice. The account will convert your UK Pounds into INR, which you can then easily spend in India.
A lot of NRIs also send funds to India for investments. An NRE bank account could be very helpful in such cases as well.
2. Earn Tax-Free Interest on Deposited Amount
The balance that you maintain in your NRE bank account earns interest. Moreover, unlike most other investment options for NRIs, you are not required to pay any taxes on the interest you earn from your NRE bank account.
Also, the principal, as well as the interest amount, is fully repatriable. You can easily transfer the NRE account balance to your current country of residence.
3. Multiple Types of NRE Bank Accounts
Apart from the standard NRE savings account, you can also open NRE FD (Fixed Deposit) and NRE RD (Recurring Deposit) accounts. With these accounts, you can deposit a fixed sum for a fixed duration and earn a higher rate of interest on maturity.
If you don’t readily need the funds deposited in your NRE bank account, FD and RD accounts can be great choices to grow your savings.
4. Affordable Money Transfer Services
Some of the top Indian banks also offer highly affordable money transfer services to their NRI customers. With this, you will be able to easily transfer funds from your NRE bank account to any other bank account in India.
You can also make payments, such as insurance premiums, utility bills, etc. in India directly from the online banking portal of your bank.
5. Indian Account Beneficiary
You also get to select an Indian beneficiary for your NRE account. The beneficiary will also be provided with a debit card and cheque book for your account so that he/she can manage the account on your behalf.
You can select any of your family members as the account beneficiary so that your loved ones can use your account as and when needed.
How to Open an NRE Account in India?
You can open an NRE bank account from India or even after moving to the UK. The account opening form can be submitted online or offline.
If you are already in the UK, you might be required to visit the bank to complete account verification if this is your first bank account in the UK. So, prefer a reputed Indian bank that has multiple branches in the UK. Also, check the minimum balance requirements, interest rate, charges, etc. to ensure that you select the best.