Can Indian Residents Open a US Bank Account with Vested Money?
When I moved to Haas for my MBA in 2017, I opted to open a US bank account. It was a time-consuming process. To begin with, opening a US bank account from India was impossible. Even in the US, the paperwork required was simply too much. However, times have changed. With the advent of innovative digital solutions, this process has become significantly easier.
Introduction to Vested Money
When we started Vested, one of our primary goals was to make cross-border transactions as simple as possible. We began by introducing Vested Invest, which allows investors to invest in US markets. Now, with the launch of Vested Money, customers can open a fully digital US bank account from the comfort of their homes in India. This article will delve into the specifics and provide a comprehensive understanding of why opening a US bank account can be beneficial for Indian residents.
Benefits of Having a US Bank Account for Indians
1. Saving in USD
Indian residents can save in USD, which can help hedge against INR depreciation. In these unstable economic times, safeguarding your savings in a stable currency can provide peace of mind and financial security.
2. Educational Savings
Indian parents who wish to send their kids to the US for higher education can start saving early in USD. This approach can help them make the most of the outward remittance limit, which is 250,000 INR per year, under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India.
3. Global Shopping
With a USD-denominated Visa card, Indian residents can shop from global brands and foreign online retailers. They can conveniently pay for subscriptions without any FX markup, making the purchasing experience smoother and more cost-effective.
4. Investing in US Markets
The US stock market offers a wide range of investment opportunities for Indian residents. With a US bank account, they can invest in US stocks, ETFs, and other financial instruments, diversifying their portfolio to include International assets.
5. Remittances to the US
Opening a US bank account can also facilitate sending money to kids studying in the US or family members living there. This streamlined process can help eliminate the need for multiple transactions and reduce fees associated with traditional money transfer methods.
6. Direct US Salary/Income
Indian residents can now receive their US salary or income directly into a US bank account, making it easier to manage their finances across borders. This can also help them build a strong financial foundation in the US.
Is It Legal?
Yes, it is absolutely legal for Indian citizens to open and maintain a bank account in the US under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India. The LRS is a policy that governs the remittances from India to overseas. Under the LRS, all resident individuals of India, including minors, are allowed to remit up to 250,000 USD per financial year.
How to Open a US Bank Account from India
Vested Money makes the process of opening a US bank account incredibly simple. All you need is a valid passport. Here are the steps:
Create an account with Vested Money through their secure and user-friendly app or website. Submit a few basic documents, including your passport, to verify your identity. Once your account is approved, you will receive both a virtual and physical USD-denominated Visa card. The account is FDIC insured up to 250,000 USD, providing an added layer of security for your funds.Vested Money is set to launch soon in India. Be among the first to gain access by signing up now.
Conclusion
In today’s globalized world, having a US bank account can provide numerous financial benefits to Indian residents. From saving in USD to investing in the US stock market, the possibilities are endless. Vested Money makes this process easy, fast, and secure. Sign up now to experience the future of cross-border banking.