A Non-Resident Ordinary Account is a Non-Resident Indian or NRI Account that is useful if you hold rental property and other investments that earn you periodic returns in India. An NRO Account allows you to park your Indian income securely. It keeps your money secured by offering reasonable interest returns. If you plan to open an NRO Account, you need not visit the bank.
You can simply log into the bank portal facility and open your NRO account online. Here is an overview of the features of an NRO Account. They explain how the account is beneficial:
- An NRO Account is maintained in Indian Rupees. You can deposit your earnings in foreign currency as well. Note that your foreign currency deposit gets converted to INR on deposit.
- Funds in your NRO Account are held as savings or deposits. Both earn you a competitive interest rate. The interest rates your deposit attracts, differ for each bank. Therefore, it is best to check all options in the market before zeroing on a bank.
- The interest gains from your NRO Account are fully repatriable. However, there are limitations to the amount you can repatriate from your account financially. You can only repatriate funds up to USD 1 million in a financial year.
- Interest gains from an NRO Account are subjected to tax deduction.
- You can choose to open an NRO Account India with another resident family member. The account can be jointly held only on a former and survivor basis.
- Usefulness
Secures earnings: Opting for an NRO Account is a great way to ensure your Indian and foreign earrings. You can deposit funds in your account through direct bank transfers, cheques, or bank drafts.
Grows savings: Saving money is necessary to secure your financial future. But it is also essential to invest in them. There is no better way to maximise your savings than opting for an NRO Bank Account. It keeps your money safe and earns you attractive returns.
Makes seamless fund transfers: NRO Accounts offer maximum ease for fund transfers. If you wish to transfer proceeds from the sale of your family property, you can easily do so with your NRO Account.
Handles obligations: When you live abroad, you may still have financial obligations in India. Hence, the joint account holding feature of NRO Accounts lets you meet your financial commitments hassle-free.
Avail credits: If you hold NRO Fixed Deposit and do not wish to break it during emergencies, apply for a Loan on FDs. This allows you to fund your emergency while keeping your savings intact.
