An NRO (Non-Resident Ordinary) account is what an NRI needs to manage his/her earnings in India. Check out this post to know five factors that NRIs should consider for selecting the best NRO account.
The FEMA (Foreign Exchange Management Act) laws do not allow NRIs to open or manage regular savings accounts in India. Dedicated NRI accounts have been created to help NRIs with their banking needs.
One such account is an NRO (Non-Resident Ordinary) account. NRIs generally use an NRO account for depositing their Indian earnings, such as rent, dividends, etc.
Just like any other banking product or service, there are some factors that you should take into consideration while selecting the best NRO account. Here are five such factors-
1. Competitive Interest Rates
In the past, the interest yield of NRI accounts was considerably lower than regular savings accounts used by resident Indians. But in the last few years, the interest rate has increased significantly. You can now find top banks offering NRI interest rates at par with regular accounts.
While selecting an NRO account, do check the interest rate offered by the bank. A higher interest rate will help you earn additional income on your deposited savings.
2. Low Minimum Balance
Just like regular savings accounts, you’re required to maintain a minimum balance in your NRO account. Failure to maintain this minimum balance leads to a penalty. To protect yourself against this penalty, and ensure more flexibility with regard to your finances, consider an NRO account with low minimum balance requirements.
There are now some top banks in India that only require a minimum balance of Rs. 10,000 in their NRO accounts.
3. Mandate Benefits
If you’re currently working in a foreign country, but your family lives in India, then the availability of mandate benefits is another vital consideration when choosing an NRO account. The mandate account holder is allowed to manage the NRO account on behalf of the NRI account holder. This can make it easier for your family in India to use your account as and when needed.
Some banks also offer a checkbook and even an ATM card to the mandate holder for enhanced convenience.
4. Money Transfer Service
While the NRO account can be used for depositing your Indian earnings, you might also need to transfer your foreign earnings to India regularly. For this, it is essential to select an NRO account that comes with hassle-free remittance services.
This will enable you to transfer your foreign funds to Indian banks online with only a few clicks. Some banks also have their international money transfer apps for on-the-go abroad to India money transfers.
5. Easy Account Access
You should also be able to access your account online easily. The bank should have a feature-packed and secure net banking portal and phone banking app. This will ensure that you’re able to use your NRO savings account for payments such as utility bills, insurance premiums, etc. in India.
Account-holders should also be provided an ATM-cum-debit card for easy fund withdrawal whenever they’re in India.
Choosing the Best NRO Account
If you’re looking to open an NRO account in India, then consider these features to make the right selection.
Consider at least a few top banks known for their NRI products and services and then compare them based on these features. This will make it easier for you to reach an effective conclusion.