As an NRI residing abroad, having a savings account in India can help you better manage your finances back home. Whether you need to support your family, pay bills, or save for the future, the right NRI account can optimise your overseas earnings. Follow these handy tips to maximise returns on your NRI savings account:
Tips to Manage your NRI Savings Account
Some of the helpful tips to manage your savings account as an NRI are as follows:
1. Choose the Right Bank
When opening an NRI savings account, opt for a reputable bank specialising in serving NRIs. Look for banks with an extensive branch network, dedicated relationship managers for personalised services, and online/mobile platforms tailored for managing your account remotely. Additionally, compare interest rates, fees, fund transfer facilities, and exchange rates across banks to find one that best suits your needs.
2. Link Accounts for Easy Transfers
Banks allow easy funds transfer between your overseas and Indian accounts via wire transfer, demand drafts, etc. However, check for any hidden charges on fund transfers before linking your accounts. Also, see if the bank allows free transfers from your NRI bank account to third-party accounts in India.
3. Tax Benefits on Accounts
Interest earned from NRO savings accounts is taxable in India. However, income from NRE and FCNR accounts is entirely tax-free. If you have taxable investment income in India, open an NRE/FCNR account to enjoy tax exemption on interest from your savings deposits. This offers better returns than taxable accounts.
4. Competitive Interest Rates
A significant factor impacting returns on savings accounts is the interest rate offered. Compare interest rates across banks to find the most competitive NRI account rate. Also, account for all terms and conditions that apply to earning the advertised interest rate without nasty surprises later.
5. Top Service Quality
Good service quality is vital when managing an overseas account. Opt for a bank with 24×7 customer support via call centres, chat, email, social media, etc. Check their mobile/net banking platform reviews for convenience and user experience. Having dedicated support also enables personalised and prompt resolutions for you.
6. Investment Opportunities
Parking your money in a savings account alone may limit returns. Top banks enable online investing from your account into mutual funds, stocks, bonds, insurance products, etc, to grow your money further. Check for any investment restrictions applicable to NRIs. The right investments tailored to your risk appetite and goals help optimise overall earnings.
7. Regular Monitoring
Log in frequently to your NRI account portal to review recent transactions, fund transfers, interest payouts, charges, if any, investment values, and account statements. Actively monitoring account activity is vital for financial transparency and raising timely queries in case of discrepancies. SMS/email alerts for key transactions should also be set up.
8. Efficient Bill Payments
To avoid missing due dates on financial commitments back home, set up standing instructions from your NRI account for regular bill payments and EMIs. Most banks allow scheduling one-time or recurring payments from your account directly to the payee details provided. This saves time while ensuring continuity.
Conclusion
The right NRI savings bank account goes a long way in conveniently managing your Indian finances and maximising returns on overseas earnings. Assess your unique needs and identify an account that fulfils your requirements while helping you save, invest and plan better. With prudent planning, you can optimise your account abroad to secure your financial future in India.
