Working abroad is an ideal way to earn abundantly and sufficiently due to the various job offers and high standard of pay. After earning, they send part of their income back to the family at home through the NRI Savings Account. In this article, we give you details of how the best way to ensure that the family is financially stable is through this account.
There are two types of NRI Savings Account, namely the NRE and the NRO savings account. each of these accounts have different features and benefits that will ensure that the respective family members who have access or joint holders for these accounts are capable of using the funds transferred or stored in here.
The main features of this type of account is that is mainly rupee denominated and cannot be repatriable. However it can be jointly held with a resident of the Indian country, where withdrawals can be made by the local resident in the currency of rupee. Although the interest from this account is taxable especially for income tax, it has several benefits. This includes remittance of foreign exchange from banks abroad along with deposition of foreign currency notes and traveler cheques brought back into the country. Funds can be easily transferred into the NRO account in the name of the account holder. It also includes the benefits of reparation of an amount of 1 million USD per single calendar, while subjected to taxes.
This type of NRI Savings Account is mainly a rupee denominated account. Funds that are transferred to this account can be easily remitted as it is free in foreign exchange. If there are deposits to be done in this type of account, it can be done in the form of legal foreign exchange or repatriable income. Although this account can have another NRI as a joint account holder, a resident residing in the country of India will have the power of attorney status holder where he is given the power to operate this account from the home country. One added advantage for this account is that, it is exempted from any income tax deductions. The other transactions that can be conducted from this account include remittance of foreign exchange from banks that are abroad and deposition of funds in the foreign currency and travelers cheques brought into the country. Funds from this account can also be transferred from another NRE account of the same name holder. This also works for the FCNR account and where funds can be transferred to this type of account.
Thus as we can see from the above functions how NRIs who are abroad can easily transfer funds to their family back home, ensuring that they are financially stable in the process.