Things NRIs Should Check When Opening NRE Account

An increasing number of Indians now move to foreign countries in search of better professional opportunities. Once settled, most of them transfer their earnings back to India regularly. While there are several ways to do this, many NRIs now prefer opening an NRE (Non-Resident External) account.

This not only allows NRIs to park their foreign earnings but also earn handsome interest on the same. If you are an NRI and want to open an NRE account, there are a few essential things that you should keep in mind. Five such vital points are-

1. Types of NRE Account

There are different types of NRE accounts, such as savings, current, fixed deposit, and recurring deposit. You must understand what these different accounts mean to select the best as per your requirement. For instance, an NRE savings account is similar to the basic savings account wherein you deposit your savings and earn interest on the same.

With an NRE savings account, you can access your funds any time you like. With NRE FD, your deposit will be locked for the selected duration during which the deposit amount will earn a higher interest rate as compared to the NRE savings account. Understanding the benefits and working of different types of NRE accounts will help you pick the right option.

2. Interest Rate

One of the most significant benefits of opening an NRE account is the interest rate. However, the interest rate can vary significantly between banks. As a result, it is imperative to compare the interest rates offered by banks before selecting the one that offers a competitive interest.

3. Exchange Rate

As you will be depositing your foreign earnings in the NRE account, you must check the exchange rate provided by the bank. While the exchange rate will fluctuate daily ensure that the bank you select has a reputation of offering competitive and transparent rates.

This is another reason why you must select a top private bank as they are generally known to offer the best exchange rates along with a host of added benefits.

4. Account Opening Process

Prefer banks that have a quick and simple account opening process. As you might already be in a foreign country, the bank should offer an online account opening facility for better convenience. Some of the top private banks in India also have international branches and offer document pick-up facility.

You will mostly find detailed information about the NRE account opening process on the official website of the bank. Also, go through the documentation requirements of the bank so that the account opening process is hassle-free.

5. Additional Facilities

Apart from high NRE interest rates, banks now also offer a host of other facilities to better meet the needs of the NRIs. For instance, with NRE FDs, some of the banks provide loans against FD along with partial premature withdrawal.

Similarly, some of the banks also have their mobile banking apps for enhanced convenience. Prefer banks that offer a host of valuable features as they come in very handy at times of need.

Experience the Modern World of Banking with NRE Accounts

The NRE accounts are an excellent way to earn risk-free returns on your hard-earned money. With banks now offering different types of NRE accounts and a host of facilities, opening an NRE account is a smart choice for you if you want to park you foreign earnings.

"The contents of this article is meant merely for informational purpose. Any reliance placed on such information is therefore strictly at one’s own risk."

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