Plenty of Indian students look towards foreign countries like Canada, Australia and the USA for specialized courses and further education. Students studying abroad not only get an opportunity to learn and make the most of the cutting-edge educational infrastructure, but also gain access to cultures of different nations and meet new people.
Indian students living abroad do need access to a bank account to manage their finances effectively. Whether it is to purchase books and study materials, pay fees, take care of bills and handle expenses for shopping and entertainment, a bank account can really help students in their day to day lives.
When Indians are employed abroad, they have the option of opening an NRI account like an NRO or an NRE account to manage their finances. Can a student living abroad do something similar? The answer is yes. This is where an NRI Student account comes in. Many banks offer students a special NRI account. When an Indian student is studying abroad, they can open an NRI Student account to manage their finances. Let us understand what a Student NRI account is.
What is a Student NRI Account?
A Student NRI account is basically an NRE (Non-Resident External) account that is aimed at Indian students living abroad for studies. Any NRI student can open such an account and use it for their banking needs abroad.
What is the need for a Student NRI Account?
The biggest advantage of a student NRI account is the minimum balance requirement. For such accounts, a minimum balance of just Rs. 5000 is usually all that is required. Banks understand that NRI students have unique banking requirements and they may not always have large funds in their accounts. Hence, the minimum balance requirement of such accounts is usually low.
Features and Benefits of Student NRI Accounts
- Low Minimum Account Balance: Most banks offer student NRI accounts with as low as Rs. 5000 as a minimum balance requirement.
- Extensive Access to Your Account: Student NRI Accounts come with an international ATM-cum-Debit card that can be used across many outlets and ATMs.
- Attractive Interest Rates: Student NRI accounts also offer good interest rates. The interest rates start typically from at 3.5% p.a.
- Transfer Funds Freely: Since an NRI Student account is an NRE account, you can easily transfer funds to your country of residence since the funds in your account will be fully repatriable.
- Tax Benefits: Interest and principal amount in an NRE account is completely tax free.
How to Open an NRI Student Account?
You can easily open an NRI Student account by approaching your preferred bank and submitting your application and documents. The best time to do so is before you leave India since the process will be hassle-free.
Documents Required for Student NRI Account
When you apply from within India:
- Photocopies of first four and last four pages of your valid passport
- Valid student visa. If you hold a regular visa, then a college ID card would be needed to confirm student status.
- Address proofs.
When you apply from overseas:
- Photocopies of the same documents mentioned above but self attested as well as duly attested by a banker/notary/embassy official.
- Address proofs.
If you’re planning to travel overseas for further education, then opening a student NRI account would do you a whole of good. It is the best student bank account to effectively manage your finances, make purchases, carry out transactions and expenses very conveniently. The low minimum balance requirement also means that you can easily maintain your account with your pocket money or income from a part-time job.