USD INR ₹ 86.10
GBP INR ₹ 107.89
CAD INR ₹ 58.92
Articles

Detailed Review Of NRI Banking Services

Updated on March 29, 2021 11:09 am
NRI Banking

Many big banks and financial institutions in India offer Non-Resident Indians (NRIs) a wide range of banking products and services - savings accounts, fixed deposit accounts, money transfer services, loans, investment, insurance, and so on.

All of these products and services are accessible from abroad, thanks to internet banking and various banking channels. It is convenient, efficient, and hassle-free. 

NRIs send remittances to India in millions every year for various purposes - savings, investments, financial help for loved ones, or to build a nest egg. Thus, banks offer several financial products and services to provide the best banking experiences to NRIs.

This blog will focus on NRI accounts, benefits, interest rates, fees, customer services, banking channels, and remittances services. 

NRI Accounts

As a Non-Resident Indian (NRI), you are probably aware that you are not allowed to have a residential bank account under your name in India. If you had one when you were a resident Indian, you would have had to convert it into an NRI account once you gained the NRI status. Failing to do so incurs heavy penalties. 

To be declared an NRI, you need to stay outside of India for at least 120 days in a year and spend less than 365 days in 4 previous years. 

Banks offer NRIs the facility to maintain NRI bank accounts in India in  Indian rupees or other foreign currencies. The three main types of bank account an NRI can operate are Non-Resident Ordinary Account (NRO), Non-Resident External Account (NRE), and Foreign Currency Non-Resident (B) Account (FCNR).

An NRE account is for keeping your foreign earnings after converting them into Indian currency while an NRO account is to retain your income earned in India. These accounts can be in the form of savings, current, or deposit accounts. FCNR is a fixed deposit account to keep your overseas income in foreign currency such as US Dollars, Euro, British Pound Sterling, etc for a tenure of 1 to 5 years. 

Resident Foreign Currency Account 

For NRIs who plan to return to India for a continuous period of not less than one year and are bringing back foreign currency from their bank account overseas, they can open a Resident Foreign Currency (RFC account). RFCs can be maintained in foreign currencies such as USD and GBP or others depending on the availability of your banks/ authorized dealers. 

In case you decide to change back to your NRI status, the funds in your RFC account can be repatriated abroad or get it converted to an NRE account or FCNR account.   

Benefits of NRI accounts 

  • Repatriation: NRE and FCNR accounts are fully repatriable. Interest earnings of the NRO account are fully repatriable. The principal amount in the NRO account can be repatriated up to 1 million US Dollars or equivalent in a financial year
  • High Returns: NRI accounts and fixed deposits offers competitive interest rates that allow NRIs to earn high returns 
  • Multiple Accounts: NRIs can maintain multiple NRI accounts with various banks
  • Tax Liability: Principal and Interest of NRE and FCNR accounts are tax exempted 
  • Power of Attorney: NRIs can appoint an Indian resident as the power of attorney who can manage the accounts in India if needed 
  • Investment: NRIs can partake in the Indian stock market and invest in various investment schemes, mutual funds, financial instruments through their accounts
  • Zero risks of exchange rate fluctuations: Deposits in FCNR accounts are protected from fluctuations in the exchange rate and hence no depreciation in the value of the deposits
  • Remote and easy opening of account: Online banking portal makes the documentation and NRI account opening process easy and convenient while staying abroad
  • Easy access to funds: NRI accounts allow for a smooth flow of funds within India and abroad and can easily be accessed from anywhere 

Interest Rates

Interest rates on various accounts differ across banks. Savings accounts or fixed deposits have their specific rates. 

Let's have a look at the table comparing top banks such as State Bank of India, Axis Bank, HDFC Bank, etc on their NRE fixed deposits interest rates for different tenure 

 

Fixed deposits have higher interest rates than savings accounts. Let's have a look at the table showing different rates and minimum balance requirements for top banks in India for NRE Savings Accounts.

 

You also have the opportunity to earn risk-free higher returns on your investment with FCNR deposits in Indian banks. Banks in the US provide comparatively low-interest rates on fixed deposits. For instance, Bank of America offers 0.03% interest rates on fixed-term CD for a 5-year term. 

 

Always check and compare the different interest rates provided by banks before deciding to open savings accounts or deposits. 

Savings accounts are great for facilitating withdrawals of remitted money in India by your family members or by the power of attorney holders when in need of funds. The current account is useful if you have a business in India and there is a need for frequent transactions. 

NRI Banking Charges 

There is a range of fees associated with various services and products. Here is a sample of the fee structure of HDFC Bank.

Online and Mobile Banking Experience 

All of the banks offer online and mobile banking to their NRI customers for added convenience. This is a no-brainer in today's world of tech-savvy customers. 

You can initiate opening your NRI accounts online when you are abroad. You can go to the bank's website from the comfort of your home and fill up an online form for opening your bank account. 

Online transfer of funds lets you complete your transactions without the need to be physically present in India. 

One major drawback with online banking with most banks is that you need to print out and send physical copies of the forms, KYC documents to the physical branch. Once the bank receives the documents, they will need to verify for the account to be finally opened. The process can sometimes take days or weeks.  

Compared to other banks, ICICI's net banking experience is superior. The ICICI's website is user-friendly and hence easy to browse and understand the services offered. 

Additionally, it has multiple branches overseas. You can visit one near your city if required to sort out any issues. It can be difficult with banks that have no overseas branches. 

Mobile banking applications that are freely downloadable offer all your banking needs right at your fingertips. You can transfer money, deposit funds, pay bills, phone recharges, check balance, and a lot more. You can stay updated with instant alerts and statements on account activities. 



Remittance Services and Fees 

India has been the top recipient of remittances in the world for years now. This is because of large Indian diasporas residing in different countries who are sending in money to their families and loved ones or for investments in the Indian economy.

Sending remittances from countries such as the United States, United Kingdom, Canada, and Australia to India is easier and less expensive due to the proliferation of various remittance service providers. While it is much easier to send money internationally today than it used to be, traditional banks are still the best option for sending money from India to foreign destinations.

Top banks in India such as SBI Bank and ICICI Bank offer dedicated remittance services for easy transfer of funds across international borders. They offer competitive rates and charge low service fees.

Popular remittance services by a couple of the banks and the charges are as follows:

Check our review on ICICI's Money2India services. 

Remittances to India play a significant role in the growth of the Indian economy. NRIs are encouraged to invest more by the Indian government through incentives such as tax exemption, high-interest rates, or making it easier for NRIs to start a business in India.  

The best way to go about sending money when the exchange rate is involved is to compare the exchange rates provided by various money transfer companies in the market that are specialized in cross-border transactions. This way you can save money by choosing the best exchange rate and also avoid paying hidden fees that can unnecessarily increase your expenses. 

CompareRemit is an online platform that allows you to compare the rates and fees in real-time and opt for the money transfer service that appeals to your requirements. It is that easy.  

Customer Service

Virtual assistants are accessible on the website of most of the banks, you can contact customer support and type in your queries, and get a response in minutes. Such is the case for all the top banks in India.

Although there are instances where customer support representatives have limited capability to resolve your problems. There are delays or cases of unresponsive customer support.

Conclusion

Banking in India even as an NRI comes easy because banks are committed to providing the best infrastructure and services for customer satisfaction. Owing to a competitive marketplace, NRIs have plenty of good options for your various banking and investment needs. 

Try out your options and settle for the one that you can trust with your finances. 

With banking and financial technology advancing rapidly, it is hopeful that the services will only get better in the coming years.

 12818 views
Rate article:
(5.0)
 
 
Money Transfer FAQ's
Related Articles
UK to Philippines
How to Send Money from the UK to Philippines

Sending money from the UK to the Philippines is a significant financial transaction that requires careful consideration to ensure efficiency, cost-effectiveness, and security. As an immigrant or someone supporting family and loved ones back home, understanding the process and selecting the right remittance service is crucial. Do not worry. CompareRemit is here to guide you through all of your remittance needs. In this guide, we'll walk you through the essential steps, considerations, and top remittance providers to help you make informed decisions and maximize the value of your money transfers.Things to Consider Before Transferring Money from UK to PhilippinesBefore initiating a money transfer, it's crucial to grasp two essential factors: exchange rates and transfer fees. The exchange rate refers to the value of one currency relative to another. For example, if the GBP to PHP exchange rate is 1 GBP to 71.81 PHP, it means one British pound is equivalent to 71.81 Philippine pesos. Transfer fees, on the other hand, are charges imposed by remittance companies for their services.It's worth noting that exchange rates and transfer fees can vary significantly across different companies. While some providers may offer competitive exchange rates, they might compensate by charging higher transfer fees. Conversely, others may provide lower transfer fees but offer less favorable exchange rates.It's essential to find a balance between favorable exchange rates and reasonable transfer fees to maximize the value of your remittance. Some companies may offer promotional rates or discounts for first-time users, while others may have ongoing promotions or loyalty programs. Comparing different remittance providers using platforms like CompareRemit can help you find the best combination of rates and fees for your transfer.Will GBP to PHP Increase or Decrease?As of the latest data, the GBP to PHP exchange rate stands at 1 GBP to 71.81 PHP. CoinCodex forecasts a potential 9.43% rise in the GBP to PHP exchange rate over the next year, reaching approximately ₱ 78.22 at some point during the year. While exchange rate predictions provide valuable insights, they are subject to change based on various economic and geopolitical factors. Monitoring exchange rate trends regularly can help you identify favorable opportunities for sending money to the Philippines.When is the Best Time to Send Money from the UK to Philippines?Determining the best time to send money involves strategic planning and analysis of exchange rate fluctuations. Referencing forecast predictions and using comparison sites like CompareRemit can help you track the best exchange rates and promotional offers from top remittance companies. By timing your transfers during periods of favorable rates or promotions, you can optimize the value of your remittance and save on transfer costs.How to Transfer Money from the UK to PhilippinesOnce you've finished comparing and contrasting the top providers and selected the best remittance provider through CompareRemit’s Compare Tool, the next step is to initiate the money transfer. Remittance services typically offer various transfer methods, including online transfers, bank deposits, and cash pickups.Sign up: Create an account with your chosen remittance provider and complete any required verification steps.Enter recipient details: Provide the recipient's information, including their name, address, and contact details.Select transfer amount: Enter the amount you wish to send, ensuring it meets any minimum or maximum transfer limits.Choose delivery method: Select the preferred delivery method for the recipient, such as bank deposit or cash pickup.Review and confirm: Double-check the transaction details, including exchange rate and fees, before confirming the transfer.Complete the transfer: Submit your payment and wait for confirmation of the successful transfer.Top Remittance Providers for Transferring Money from the UK to the PhilippinesXe Money TransferXe offers competitive exchange rates, low fees, and fast transfers, making it an excellent choice for sending money from the UK to the Philippines. Their user-friendly platform ensures a seamless remittance experience for users.Wise Money Transfer Formerly known as TransferWise, Wise provides transparent exchange rates and minimal fees, allowing users to send money with confidence. With millions of satisfied customers worldwide, Wise offers a reliable and cost-effective solution for international transfers. Instarem Money TransferInstarem offers competitive rates, no hidden fees, and real-time tracking, ensuring transparency and security throughout the transfer process. With Instarem, users can send money to the Philippines quickly and conveniently.PassToPassTo specializes in tailored remittance solutions for migrants, offering flexibility, convenience, and personalized service. With a focus on customer satisfaction and reliability, PassTo is an excellent choice for sending money to the Philippines and beyond.Frequently Asked QuestionsQ: What are the best rates from GBP to PHP?A: As exchange rates fluctuate, it's advisable to monitor platforms like CompareRemit to find the best rates from GBP to PHP offered by various remittance providers.Q: When is the best time to transfer money from the UK to Philippines?A: Monitor exchange rate trends and utilize comparison tools to identify favorable transfer windows.Q: How can I compare money transfer services from the UK to Philippines?A: Utilize comparison sites like CompareRemit to compare money transfer services based on exchange rates, fees, transfer speed, and customer reviews.Q: What is the best way to transfer money to the Philippines online?A: The best way to transfer money to the Philippines online is to use a reputable remittance provider, ensuring competitive rates and secure transactions.Q: How can I ensure the safety and security of my money transfers?A: Choose reputable remittance providers with robust security measures in place to safeguard your transactions.

Travel Insurance
How to Save on Travel Insurance (2024)

Travel insurance is an essential aspect of trip planning, providing financial protection against unforeseen events such as trip cancellations, medical emergencies, and lost luggage. However, finding the right travel insurance plan at an affordable price can sometimes be challenging. In this comprehensive guide, we'll explore strategies to help you save money on travel insurance without compromising on coverage or quality. Understanding Travel InsuranceBefore diving into ways to save money on travel insurance, it's crucial to understand what travel insurance entails. Travel insurance typically offers coverage for various aspects of your trip, including trip cancellation or interruption, emergency medical expenses, baggage loss or delay, and travel assistance services. By purchasing travel insurance, travelers can mitigate financial risks associated with unforeseen events during their journey.Why Some Plans Cost More Than OthersThe cost of travel insurance can vary depending on several factors, including:Coverage Options: Comprehensive plans that offer extensive coverage for emergency medical events during one’s travels tend to command higher premiums than limited coverage plans, but offer more overall benefits and protection.Destination: Traveling to countries with higher healthcare costs or greater risks of natural disasters may result in higher premiums.Medical Costs: The cost of travel insurance is closely tied to the healthcare expenses in the destination country. Countries with higher medical costs often have correspondingly higher insurance premiums.Trip Duration: Longer trips typically incur higher insurance premiums due to increased exposure to potential risks.Age: Older travelers may face higher premiums due to increased health risks and potential for pre-existing medical conditions.Coverage Limits: Plans with higher coverage limits and lower deductibles may have higher premiums.Add-Ons and Optional Coverage: Additional coverage options such as adventure sports coverage, rental car protection, or cancel for any reason (CFAR) coverage can increase the cost of insurance.Tips for Securing Affordable Travel InsuranceIf you are apprehensive about giving away your money on travel insurance, there are many ways to cut down on the cost of the insurance plan.Here are some tips to save money on your travel insurance plan.Compare PlansConduct thorough research and compare quotes from multiple insurance providers to find the most suitable plan at the best rate.Utilize online comparison tools to evaluate coverage options, premiums, and exclusions across multiple plans. Websites like VisitorsCoverage allow you to compare prices and coverage options from various insurers, allowing you to make an informed decision for your needs.As shown here, comparison sites, like VisitorsCoverage, allow you to compare and contrast various travel insurance plans based on your custom needs. You can customize the plans available to you by specifying your coverage amount, plan features–including COVID-19 coverage and pre-existing conditions coverage–available, and additional coverage options.If you are considering visiting multiple comparison sites, let us save you the hassle. Insurance prices are regulated. This means that the same plan with all conditions remaining constant will not have a lower price at other agents, travel insurance aggregators, the insurance company issuing the plan, or any other source.However, similar plans by different companies may have a price differentiation depending on the customizations you enter, hence it is critical to evaluate inclusions and exclusions in the policies.Only Buy Coverage You NeedDon’t pay for coverage you don’t need. It is vital that you customize your plan to get the most specific coverage for you. Luckily, modern-day comparison tools and insurance providers allow us to do just that. When purchasing your policy, a big money saver can be avoiding purchasing unnecessary add-ons or upgrades that may inflate the cost of your policy. Assess your travel needs and opt for coverage that aligns with your specific requirements.It is important to know what exactly your travel insurance plan entails and what it covers. Make a list of things that you need to be covered depending on the types of trips you will be taking and if there are any specific medical conditions that may need attention.The details are always in the fine print. Don't just look at the premium value, read the policy document for inclusions and exclusions in the plan. In the long term, this will save you money and trouble.However, there is a strong caveat to this. While opting for the cheapest plan may seem cost-effective initially, inadequate coverage could lead to significant expenses in the event of a claim. Should you run into an emergency that is not covered, you will have to pay out of pocket. At the end of the day, the cheaper plan may end up costing a whole lot more. Read policy documents thoroughly to understand coverage details and exclusions before making a decision.Bypass Travel Site OffersWhen booking flights or accommodations, you may encounter offers to purchase travel insurance directly from the booking site. Skip the checkbox for travel insurance on these booking sites. These plans often come with commissions and may not provide tailored coverage. For optimal savings and personalized coverage, opt for a separate plan from reputable insurers.Sometimes, these add-on plans might seem like a good deal. However, keep in mind that, many times, these plans try to be a one size fits all solution. The amount of premium will vary depending on who is buying the plan. For example, an older person traveling with medical issues will pay more premium than a young person traveling with no medical issues. Using a “one size fits all” option may lead to a situation where you have to pay out of pocket in the case of an uncovered medical emergency. Use Your Credit Card Travel InsuranceFor those looking for trip insurance rather than travel medical insurance, there is a great option you may already be accessing without realizing. Some credit cards offer complimentary travel insurance benefits, such as trip cancellation, trip interruption coverage, and baggage delay protection. Cards such as Chase Sapphire Reserve are well known for their comprehensive travel insurance coverage. Review your credit card's terms and conditions to understand the extent of coverage provided and consider leveraging these benefits as a supplement to your travel insurance plan.You could always use travel protection offered by your card as a top-up to another policy that covers the emergency medical expenses. There is no reason to spend extra money on trip insurance when you are getting the benefits as a cardholder.Utilize Review WebsitesExplore review websites and rating platforms to gain insights into the products and services offered by leading travel insurance companies. Reading reviews can help you make informed decisions and ensure you receive excellent customer service.There are several review websites and rating websites such as VisitorInsuranceReviews.com, Trustpilot where you can read in-depth on the products and services offered by leading travel medical insurance companies.It is also important that you have access to excellent customer service from your insurance providers to get the best value for your money. Even if you save a few dollars in insurance costs but face unresponsive customer service for hours on end, the situation gets more costly.VisitorsCoverage is a one-stop shop for travel issuance which also offers an award-winning, industry-leading customer service team. They also offer AI-based customer support for those wanting quick and easy help. You can get in touch with the call team via WhatsApp messages and email. Or call them using their toll-free line number: 1-866-384-9104.Evaluate Optional Riders Such As “Cancel For Any Reason”"Cancel for Any Reason" is an upgrade option that lets you cancel a trip for any reason for 40%-75% of your insured trip costs. This option can help you save a lot of money should you run into a reason your trip is canceled. While these riders offer added flexibility, they also come with additional costs that may not be worthwhile for every traveler. But you have to pay extra to include it in your plan.Insurance companies usually have a list of the covered reasons in “Cancel For Any Reason” trip insurance. These include terrorism, natural calamities, traffic accidents, and more. If it is not listed, it will not be covered.Sift through the list with a fine toothed comb to see which scenarios are covered. Most travelers find their trip cancellation reasons covered. If you don't need the optional "Cancel for any reason", don't add it.Some plans have promotional offers that may include this coverage if you purchased the plan within a certain time frame. Make sure to check for any promotions and offers like this. Consider Annual Multi-Trip PlansFor frequent travelers, annual multi-trip insurance plans offer significant savings compared to single-trip plans. With coverage extending for an entire year, these plans provide convenience and cost-effectiveness for individuals who travel overseas multiple times a year.Avoid Insuring Refundable CostsIf your travel expenses, such as airfare or hotel bookings, are refundable, there's no need to purchase insurance for them. If you insure a refundable cost and try to seek reimbursement in the event of cancellations, you will need to show proof that certain prepaid costs were non-refundable or your claim will be denied. Instead, focus on insuring non-refundable expenses to minimize coverage redundancy and reduce premiums. This will reduce the coverage and lessen the premium of the travel insurance that you plan to purchase. It is cost-effective to know which trips need to be insured and when you don't need a policy in the first place.While the prospect of traveling without insurance can be daunting, finding affordable travel insurance doesn't have to be. By following these practical tips and strategies, you can secure comprehensive coverage without breaking the bank. Remember, investing in travel insurance is an investment in peace of mind, ensuring that you're financially protected against the unexpected twists and turns of travel. Safe travels!Get Quote And Save On Travel Insurance

Understanding USD to PHP
Understanding USD to PHP Exchange Rates in 2024

For many immigrants or individuals supporting their families in the Philippines, understanding the fluctuations in USD to PHP exchange rates is very tricky. Navigating the intricacies of these rates involves examining a spectrum of economic, political, and social factors.CompareRemit is here to make life easier for you, so you can make the best decision with little to no hassle on your part. In this guide, we'll unravel the complexities surrounding USD to PHP exchange rates, providing valuable insights to empower you in making informed decisions for your money transfers.​​Interest Rates: The Currency Tug-of-WarOne of the primary factors that influence exchange rates is  interest rates. When the U.S. Federal Reserve adjusts interest rates, it sends ripples through the currency market. Generally, higher interest rates attract foreign investment, strengthening the USD against the PHP. For individuals, keeping an eye on interest rate differentials between the U.S. and the Philippines can offer insights into potential shifts in exchange rates.Inflation: The Balancing ActInflation, the rise in the price of goods and services, plays a pivotal role in currency valuation. Countries experiencing lower inflation rates often witness an appreciation in their currency. Comparing inflation rates between the U.S. and the Philippines allows you to gauge the potential strength of the USD. A lower inflation rate in the U.S. compared to the Philippines may contribute to a stronger USD.Government Policies: Shaping Economic StabilityGovernment decisions and economic policies, both domestic and international, have large impacts on exchange rates. Policies promoting economic stability, prudent fiscal management, and sound monetary measures contribute to a stronger currency. Staying informed about the policies of both the U.S. and the Philippines will allow you to gain an understanding of the economic health and help predict dips and rises in exchange rates. Trade Balances: A Global PerspectiveThe dynamics of global trade, including exports and imports, definitely impact currency values. A country with a trade surplus, exporting more than it imports, may see a stronger currency. It might be very tedious to stay up to date with trade imbalances between the U.S. and the Philippines, but doing so can serve as an indicator of potential exchange rate movements.Historical Data: Patterns and PredictionsAnalyzing historical USD to PHP exchange rate trends can reveal patterns and provide insights. While past performance doesn't guarantee future results, understanding how rates responded to similar economic, political, or social events can guide your decisions. Historical data offers a valuable tool for predicting potential movements in exchange rates.Practical Tips for Informed Money TransfersStay Informed: Regularly follow financial news and updates from both the U.S. and the Philippines to understand the broader economic context. Regularly read our blogs to stay up to date with all the major money transfer news. Utilize Reliable Tools: Use CompareRemit’s online comparison tool and email alerts to track real-time exchange rates, ensuring you get the best value for your money transfers.Seek Professional Advice: Consulting financial experts or using professional services can provide personalized insights tailored to your specific situation, enhancing your decision-making process.In conclusion, comprehending the factors influencing USD to PHP exchange rates empowers you to make informed decisions when sending money to the Philippines. By staying attuned to economic indicators, leveraging historical data, and adopting a proactive approach, you optimize your money transfers, securing a more stable financial future for your loved ones.

Download the CompareRemit App
Download the CompareRemit App
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.
Personalize your CompareRemit experience with your preferred corridor and receive target exchange rate notifications, seamless transitions to partner apps, and real-time comparisons of top remittance providers at your fingertips.

Get Listed or Advertise

Download Our Free App

Try our faster, enhanced mobile app for a better experience

CompareRemit App