Overseas Bank Account for NRIs

In the present era of globalization, managing finances across borders for NRIs has become quite complex. Add in currency fluctuations, local bank restrictions, and international fees, and suddenly your global ambitions have a lot of admin. This is why many NRIs opt for overseas banking. It reduces foreign exchange costs, holds funds in foreign currency, and eases cross-border payments.

Want to know more about an overseas bank account for NRIs and why it is beneficial to have a part of the funds in these accounts? Read on and get your answers. 

What is an Overseas Bank Account? 

An overseas bank account is a bank account opened in a country other than where the account holder resides. These accounts are also known as non-resident or offshore accounts. Through these accounts, individuals (residents and NRIs) and businesses can simply manage their finances across several countries, hold money, and conduct transactions. To provide you with a clear idea of overseas bank accounts, here we have mentioned some of their key features. These are as follows:

• Location: Overseas accounts are generally established in countries with favourable banking regulations, favourable tax policies, and high political stability. 
• Currency: Generally, overseas bank accounts are held in multiple currencies, offering the protection and flexibility needed during currency fluctuations.
• Privacy: One of the best features of an overseas bank account is that it keeps the user's financial information discreet. Hence, these accounts are known for their confidentiality.
• Investments: Overseas accounts provide access to several investments that are generally not available in your home country. 

This was all about overseas bank accounts and how they are beneficial for people. Moving ahead, let's know why NRIs should open an overseas bank account. 

Why Should NRIs Open an Overseas Bank Account?

Overseas bank accounts offer more control over where and how NRIs want to manage their funds. It is especially beneficial when you are dealing with cross-border payments and multiple currencies. There are several more benefits that an overseas bank account for NRIs offers to you. To know more, read on:

• Ease of Transactions: Having an overseas account helps you simply transfer your funds across borders without high transaction fees in international currencies.
• Currency Diversification: You can hold overseas accounts in multiple countries, therefore assisting you in mitigating the risk of currency fluctuations.
• Asset Protection: If you want to save your wealth from political instability in a country where you currently reside, and India, overseas accounts are the right option to opt for. 
• Investment Opportunities: Overseas bank accounts provide you with access to a wide range of investment options. These options are generally not available in India or in the country where you reside. 
• Tax Optimization: Overseas accounts provide significant tax benefits to NRIs. Considering this, many overseas jurisdictions for managing wealth offer tax-efficient structures. However, it is vital to note that these tax benefits should be balanced with proper tax compliance in both India and the country where you live. The key is not to avoid tax, but to provide tax efficiency within legal frameworks. 

Moreover, overseas bank accounts for NRIs are valuable tools for managing wealth globally. It offers benefits from diversification to enhance convenience and privacy. Now, moving ahead, let's know how NRIs can open this bank account from India. 

How NRIs Can Open an Overseas Bank Account from India?

Follow the steps below to open an NRI overseas bank account from India:

• Step 1: Research and Bank Selection- Based on the following things, compare the leading banks.
• Branch network and overseas branch.
• Digital banking capabilities.
• Ratings by customers.
• Minimum balance requirements and fees for special service.
• Adherence to the cross-border banking system. 
• Foreign exchange rates.
• Step 2: Document Preparation- Essential documents required during the process are as follows:
• Passport photocopy with current visa status.
• PAN Card or Form 60.
• Income proofs such as salary slips or tax returns.
• Recent passport-size photographs.
• Bank statements of the last three months.
• A letter of reference from your current overseas bank.
• Step 3: Application Submission- There are two ways you can do so, i.e., online and offline.
• Online Process:
• Visit the NRI portal of your bank.
• Fill out the online registration form.
• Submit the scanned hard-copy documents.
• Set a KYC meeting video.
• Get an application reference number.
• Offline Process:
• Visit the branch of the bank in your home country.
• Fill out the application form and physically submit it.
• Attach all the required documents along with your application.
• Complete the KYC in person.
• Step 4: Account Verification- The timeline is 7 to 14 working days.
• Real-time document authentication.
• KYC processing (3-4 days)
• Generally, account number generation takes 1-2 days.
• Dispatch of the welcome kit takes 4 to 5 working days.
• Step 5: Account Activation- Here is how you can do so.
• Set up online banking credentials.
• To receive alerts and notifications from the bank, mention a registered phone number. 
• Link international credit/ debit cards.
• Switch on the money transfer services.
• Further, in case of any need, set up transfer standing orders.

This is how NRIs can open offshore bank accounts in India. Further, with an NRI international bank account, you can easily purchase from the best investment option in India, especially in the sector of luxury property. Now, let's know the best overseas bank accounts for Indians and NRIs. 

Best Overseas Bank Accounts for Indians and NRIs

When seeking an online overseas bank to open an account with, it is advisable to consider the services, fees, minimum balance, accessibility, among other things. To help you out, here we have mentioned the best overseas bank accounts for Indians and NRIs:

These are the best overseas bank accounts for Indians and NRIs you can opt for. Each of them combines digital flexibility, global convenience. Additionally, these comply with Indian financial laws, the Foreign Exchange Management Act (FEMA), and Indian tax regulations. This further makes these overseas bank accounts for NRIs an ideal choice. 

Moving ahead, let's know the things NRIs need to consider before opening an overseas bank account. 

Things to Consider Before Opening an Overseas Bank Account

Here are the following things NRIs should consider before opening an overseas bank account:

• Bank Reputation: While opening an overseas bank account, it is vital to consider the reputation of the bank. It is because banks with a decent reputation are more financially stable. Additionally, ensure the safety of your assets.
• Ease of Opening an Account Remotely: With rapidly growing digitalization, look for an overseas bank that provides you with the option of opening an account remotely. This further eliminates the need to travel, saving your expenses and time.
• Safety: Certify that the bank you choose adheres to global banking standards and regulations. It includes know your customer (KYC) and anti-money laundering (AML) laws. Further, before opening an account, know whether your bank provides any deposit insurance or not. 
• Tax Considerations: Overseas bank accounts help in optimizing taxes on your interest income. However, they do not help in fully exempting from tax. Considering this, different countries have different rules and regulations. Hence, it is advisable before opening an overseas bank account in a country check tax implications.
• Minimum Balance Requirements: In overseas bank accounts, generally, the minimum balance requirement is high. Considering this, some banks may have a regular income requirement or a minimum salary requirement. To see if you are eligible to open an overseas bank account with your chosen bank, check it out.

These are some of the things you should consider while opening overseas bank accounts for NRIs. It further helps in fund management. 

Final Thoughts

Lastly, as a person on a long-term basis who is relocating abroad, opening overseas bank accounts for NRIs is a good decision. Through this, you can simply transfer money to other bank accounts, access funds in the local currency of your choice destination, and make deposits. Additionally, it also helps you avoid paying high currency conversion fees. 

Further, if you want to know more about overseas bank accounts or any NRI-tax related obligations, connect with Savetaxs. We have professional tax experts with years of experience in cross-border taxation. They can solve all your tax-related doubts and assist you in better tax planning.