Savings are an eternal part of the lifestyle of people nowadays. The ever-increasing wants and unending satisfaction often arises the need for savings. It is more relevant in the case of NRIs where the terms of savings are not always appropriate. So, a detailed plan of savings must be formulated to foster savings among NRIs.
The need for savings among the NRIs arises by their need for regular visits to India. Whether be it a casual meeting with friends or a visit to a family or for any other business affairs, the trip itself involves a high budget which sometimes may not be possible for an NRI to meet. It aids in managing your finances in the country more conveniently thus enabling your family to make the best use out of your fund in your absence. The fundamentals of any savings are adequate returns. The investors would only choose those saving plans which exhibit fair and high returns.
Uses of NRI account
As the name implies, an NRI account is an account opened by an NRI for saving purposes in India. One of the basic benefits an NRI enjoys by opening an NRI account in India is the high yield of accrued interests on their investment and availing of tax-free interest on the deposit made by them. This encourages the wide use of NRI accounts owing to the benefits procured in the taxation. Another advantage of an NRI account is that it can be opened with the minimum balance and requires a minimum balance to operate. Moreover, thIs account is entirely repatriable, which allows the free flow of funds overseas without the prior consent of the Reserve Bank Of India. You can also click here to know more about an NRI account.
Tips to maximize your savings using an NRI account:
An NRI account offers tremendous benefits to the user, provided the effective use of it bearing the maximum benefits. Below are the tips to maximize your savings using an NRI account:
- Consider the inflation rate: It is important to be aware of the inflation rate of both the places to plan investment accordingly. The terms of ROI must be considered of both the places to determine the efficiency of the inflation rate
- Use of healthy policy: The choice of healthy policy promotes a reduction at your tax liability at the source. The NRI can claim the tax reduction for the premium paid towards the policy thus reducing the tax liability
- Use of ideal bank account: Normal saving accounts cannot be accessed by the NRIs. There are two alternative accounts designed to meet the needs and criterium of NRIs, namely NRE and NRO accounts. NRI can make a free choice among the two accounts to facilitate his savings from a foreign land to India. It also facilitates savings from the ancestral property or current investment
- Investment schemes: Other alternative savings hack for an NRI includes investments into the share market, real estate, mutual funds. Moreover, the implementation of GST and RERA has enabled the NRI to extract the best use of the realty market
The NRI account scheme is getting a lot of support from the Indian government and is also expected to grow soon. As an NRI you must keenly watch the terms of tax laws and investment scenarios of both the countries, thus maintaining financial disciple in respect of both the countries.