Saturday, June 13, 2015

What happens to NRE,FCNR, NRO account when NRI return back India?

One of the most common doubt among Non Resident Indians related to NRI accounts are, what will happen to their NRE, FCNR and NRO account when they return back to India? Even though you are not coming back in near future its good to know what happens to NRI account when you are no longer Non Resident Indian. When an NRI returns to India for permanent stay his various NRI accounts are converted into equivalent resident accounts. NRO saving account is converted back to resident saving account while NRE and FCNR account is converted into RFC (Resident Foreign currency) account. NRE fixed deposits can continue to run till maturity at the contracted rate of interest should you decide not to break them. After maturity, NRE and FCNR fixed deposit account will be converted to RFC account.

Saturday, June 6, 2015

Best Site for Online Instant Money Transfer to India from Australia - Remit2India

Remit2India, one of the popular remittance service among NRIs has recently launched instant money transfer service from Australia to India. Which means now you can remit money instantly, earlier it used to take 2 days. Along with Instant money transfer, Remit2India is also offering savings up to Rs. 3K+ as compared to local banks in Australia because of competitive exchange rates and lower fees (though subject to change given fluctuation in exchange rates).  So if you are sending money from Australia, its worth looking what exchange rate Remit2Inida is offering? You will usually get better exchange rates and believe me that matters, especially if you are transferring money in excess of 20000 AUD. I always suggest my friends to compare exchange rates from different remittance service before transferring, why compromise on your hard earned money, even difference of few cents can make a big difference if converted into Indian currency. Another thing, which I personally consider is the service, suppose you are sending money to your Indian account to pay your monthly EMIs only to realize that even after two days amount has not reached to your account. At that time, if you call to your remittance service you want answer and more than that solution and exact status. At this time nobody likes pathetic customer service, putting your call on hold only to drop and transferring your call from one executive to another. Good thing about Remit2India is they provide personal relationship manager, who will not only help you to solve your remittance related problem but also negotiate a better exchange rates for you. So next time you transfer money from Australia to India, make sure to check out Remit2India portal, its currently the best site for transferring money to India from Australia.

Friday, May 22, 2015

Can I withdraw money from PPF account before maturity?

Can we withdraw money from PPF account before maturity?
One of the most common question people ask before opening a PPF account is "can we withdraw money from PPF account before maturity?". One reason of this question is long tenure of PPF account (15 years). Short answer of this question is Yes, you can withdraw money from PPF before 15 years but you can only withdraw a maximum of 50% of the balance at the end of the fourth year and that too only after completing 5 years. Which means for first 5 years you cannot withdraw any amount from PPF. Liquidity is always an issue with long term investment option and you should not be putting any money you need in immediate future on long term investment like PPF. They are for big ticket items like marriage, higher education of your children etc. You must manager your other expenses and emergency expenses via liquid fixed deposits, cash in saving account and fixed maturity mutual fund which allows you to break them any time.

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