The Advantages of an NRI Savings Account| North Loop Official Blog
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17 Apr 2020

The Advantages of an NRI Savings Account

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The advantages of an NRI Savings Account

Did you know that over 30 million Indians live abroad? Indians live across the world, from the US to UK to Australia. The Indian government requires these NRIs to have different bank accounts to resident Indians (often called NRI Accounts). There are many advantages of an NRI savings account - keep reading to see what these advantages are, and how to open an NRI account.

What is NRI account

An NRI account is a bit of a misnomer - there is no such thing! When people talk about NRI Banking, they are usually talking about NRE, NRO and PIS accounts. These ‘3-in-1’ accounts help NRIs do all their Indian transaction banking, and are offered by many banks (including North Loop).
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Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes

Benefits of NRI account

If you’ve got an account in the country you’re living, and you have an account in India before you left - you may be wondering - why do I need an NRI account? Well, there are many benefits of NRI Account:
  • You require it by law - you need to convert your regular savings account to a NRI savings account if you have left India - you cannot legally use a regular Indian savings account as an NRI.
  • Deposit Foreign Earnings - NRE Accounts are used by NRIs to deposit their foreign earnings, so they can have an Indian bank account with their foreign income.
  • Deposit Indian Earnings - if you’re earning some income in India from sources such as rent or stock dividends, you will need an NRO Account to deposit those earnings.
  • Tax Benefits - NRE Accounts are tax exempt, so you can repatriate your earnings to your foreign accounts and not pay any Indian tax on those earnings! Check out tax to be paid for interest earned in NRO account.
  • High Interest Rates - both NRO and NRE accounts offer extremely high interest rates. And as we mentioned, there’s no tax on the interest on NRE accounts!
  • Invest in Indian Mutual Funds - you can use an NRO or NRE Account to invest in Indian mutual funds
  • Invest in Indian Stock Market - You can use a NRI PIS account to invest directly in Indian stocks and bonds

The Best NRI account

So what is the best NRI account? Since there are many banks offering these accounts, surely there must be one best bank for NRI Account? Well, here are a few factors to consider for the best NRI account:
  • Fees - most Indian banks charge a lot of fees for NRI accounts, for nearly every form of transaction (North Loop is free)
  • Minimum Balance - most Indian banks have high minimum opening balances and quarterly minimum balances to maintain (North Loop accounts are zero balance)
  • Global Accounts - most Indian banks only offer NRI accounts - you will need to go to a different bank in your country of residence for a local account. Or you can use North Loop, which offers US checking accounts and NRI accounts in one app.
  • Remittance Services - how will you send money to India? Some banks offer remittance services at high rates. North Loop charges no fees for remittance from USA or any country to India.
  • Investment Services - does the bank offer investment services? North Loop offers free SIPs and mutual fund investing.
  • Online Banking Experience - we live in the 21st century - what is the online banking experience like? This is all the more important since there will be no branches of the Indian bank to visit. North Loop is all-digital and offers a seamless web and mobile banking experience.

The NRI Account Opening Process

What is the NRI Account opening process like? If you don’t use North Loop, it usually looks like this:
  1. Contact the bank
  2. Get an appointment
  3. Speak on the phone
  4. Receive forms by email
  5. Print forms, fill them in, attach photos, sign
  6. Courier forms to India
  7. Bank receives and reviews
  8. Bank contacts you for more information
  9. You courier more documents
  10. Account is opened 4-6 weeks later!

Here’s how North Loop lets you open NRI account online with a few easy steps:
  1. Visit nolobank.com or download the mobile app
  2. Enter personal details and take a photo of your documents
  3. Your account is opened in 5 minutes

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.