What is NRI Banking
Are you wondering exactly what is NRI banking? NRI Banking is banking services for NRIs, including investment, loans and remittance services. Read on to understand NRE and NRO Accounts, and why you should open one, and how to get the best NRE NRO accounts.
NRI banking includes two core accounts: NRE and NRO account. These are savings (or current) accounts that let NRIs deposit money. You will get a linked debit card to be able to spend your deposits. The NRE and NRO account is often also called NRI Account.
Get a zero-balance, no-fee NRE/NRO account with North Loop in 5 minutes
NRO accounts are required if you have any income in India. If you own a property, and have a tenant paying you rent, you will need an NRO account to deposit your income. If you plan on selling that property, you will need the NRO account to deposit the proceeds from the sale. If you want to invest in mutual funds or are receiving dividends from owning certain stocks, you will need NRO accounts to facilitate those transactions.
Open NRO account online
At present, the only online way of opening an nro account online is through North Loop. If you’re looking to open NRO account online, you can sign up on North Loop in 5 minutes. Otherwise, it will take 4-6 weeks to do with other Indian banks.
The accompanying account to NRO is the NRE bank account. An NRE account is used to deposit your income earned outside of India. For example, your salary while you are abroad. If you’ve made some investments, and want to deposit your gains, or have sold a property abroad, you can deposit all these foreign earnings into an NRE bank account. All your interest earned on an NRE account is tax exempt, and the deposits are freely repatriable to any foreign bank account anywhere in the world.
Interest on NRE account
Both the NRE and NRO account offer high interest rates vs. Western banks. If you’re living in the US, UK, Canada or Australia - interest rates are near zero (or are zero). But the interest on NRE account can be as high as 7.5%, and all earnings on these deposits are tax exempt - meaning you don’t have to pay any Indian tax on them. Always remember to check the interest rate on your NRE account when signing up - many banks aren’t transparent, and don’t have high rates. Get industry-leading interest on NRE account with North Loop
Best NRE account
The best NRE account will offer you the following:
- Extremely high interest rates - many banks offer low interest rates and pocket the earnings. Sign up for a provider such as North Loop, which gives industry leading interest rates as well as transparent banking.
- Easy to open - most banks take 4-6 weeks to open an NRE account, asking you to courier. North Looplets you sign up in 5 minutes, from the comfort of your home.
- No minimum balance - to get the best NRE accounts at most banks, you will need to have a minimum balance of at least Rs. 50,000. Or try North Loop, which has no minimum balance for its elite, premium NRE account.
- No fees - NRI banking services have, on average, at least 100+ fees! This is difficult to understand your true financial health if you never know what fees you’re going to pay every year. North Loop gives you a no-fee experience.
- Good customer service - we think customer service is very important. Instead of spending hours on the phone with a bank’s customer care team, sending OTPs, getting frustrated - why don’t you do peace-of-mind, hassle-free NRI banking with North Loop.
- Good online banking experience - Indian banks’ NRI online banking services are hard to use, slow and clunky. North Loopis NRI banking built for the 21st century in a beautiful, easy-to-use app.
Difference between NRE and NRO
The difference between NRE and NRO is simple - NRE is for non-Indian income, and NRO is for Indian income. The accounts have a variety of other differences, which you can read here