SBI Account Benefits for Non-Resident Indians(NRI)
Non-Resident Indians who work, study and live abroad may find it difficult to secure their savings or exchange the currencies faster in times of need. State Bank of India offers a wide range of services exclusively for NRIs to make their financial transactions easier.
State Bank of India, the largest bank in India, is present in 37 countries, serving the Non-Resident Indians from 199 offices. With it far-reaching presence, the bank provides plenty of benefits to its customers. Read on to know what SBI has in store for Non-Resident Indians.
Types of SBI Accounts for NRI
SBI offers four types of accounts to the NRIs.
1. Non-Resident External account (NRE): Under this account, the customer can park funds remitted overseas to India. This category offers rupee dominated savings, current, fixed deposits, recurring deposit account. The investment terms range from 1 to 10 years. Interest accrued under this category will be tax-free in India.
2. Non-Resident Ordinary account (NRO): This is like NRE account except that its investment terms range from the minimum of 7 days to 10 years. Moreover, interest on the income is taxable but an NRI gets a reduced tax under Double Tax Avoidance Agreement(DTAA).
3. Foreign Currency Non-Resident Bank (FCNR) B: Currencies like the dollar, British pound, euro, Canadian dollar, Japanese yen and Australian dollar are denominated in this category. Investment terms range from 1 to 5 years. Interest accrued will not attract income tax in India.
4. Resident Foreign Currency (RFC): This is dominated by foreign currencies with the investment terms ranging from 1 to 3 years. The interest on income is tax-free until the account holder's status changes.
Major Benefits for the NRI customers
SBI bank account offers following benefits to the NRIs.
• Convenient access to the banking system depending on your needs.
• Quick transfer and of funds and exchange of currencies.
• It saves your time by enabling easy access to your funds anytime from anywhere.
• Interest accrued on the income is totally tax-free in India.
• Flexibility to maintain your savings in Indian or foreign currencies.
To open an NRI bank account in SBI, firstly you must have an NRI status. The terms and conditions differ if you have been a visitor in other countries only for a short time. Choose the right type of account to suit your needs and investments.