Union Bank of India FCNR account is meant for NRIs who wish to deposit their foreign earnings in India. Presently Union Bank of India FCNR(B) deposits can be placed in 5 currencies including USD, GBP, EUR, AUD and CAD. The major advantage of this account is that NRI depositors need not worry about the exchange rate fluctuations. In this blog, we will discuss Union Bank of India FCNR rates along with the features and benefits of a FCNR account.
Union Bank of India FCNR Rates 2023
FCNR deposit rates differ depending on the currency and tenure of the deposit. Given below are the latest FCNR deposit interest rates offered by Union Bank of India:
| MATURITY PERIOD OF DEPOSIT | USD < 500,000 | USD ≥ 500,000 | GBP | EUR | AUD | CAD |
|---|---|---|---|---|---|---|
| 1 year < 2 years | 4.50% | 4.50% | 3.96% | 2.05% | 3.25% | 3.61% |
| 2 years < 3 years | 4.30% | 4.30% | 3.50% | 2.05% | 3.20% | 3.61% |
| 3 years < 4 years | 4.05% | 4.05% | 3.25% | 1.55% | 3.30% | 3.31% |
| 4 years < 5 years | 3.80% | 3.80% | 3.00% | 1.55% | 3.40% | 3.26% |
| 5 years only | 3.80% | 3.80% | 3.00% | 1.55% | 3.50% | 3.26% |
Note:
- The above given FCNR deposit interest rates are effective from 31 May 2023.
- These rates are subject to change according to the bank and RBI guidelines.
- For up-to-date information and other terms and conditions, kindly contact the branch.
Union Bank of India RFC Deposits
| MATURITY PERIOD OF DEPOSIT | USD < 500,000 | USD ≥ 500,000 | GBP | EUR |
|---|---|---|---|---|
| 6 months < 1 year | 4.50% | 4.50% | 3.96% | 2.05% |
| 1 year < 2 years | 4.50% | 4.50% | 3.96% | 2.05% |
| 2 years < 3 years | 4.30% | 4.30% | 3.50% | 2.05% |
| 3 years | 4.05% | 4.05 | 3.25% | 1.55% |
Note:
- The above given RFC deposit rates are effective from 31 May 2023.
- Interest rates for term deposits up to 3 years are in line with FCNR (B) Term Deposits.
- Staff RFC interest rates will be paid with addition of 0.25% on the rates that are mentioned above.
Union Bank of India FCNR (B) Deposit Premature Withdrawals & Penalty
- There is no penalty on premature closure of FCNR/RFC term deposits subject to completion of minimum period.
- No interest will be paid if the FCNR deposit is prematurely closed before the completion of 12 months.
Features and Benefits of FCNR Account
The features and benefits of Union Bank of India’s FCNR (Foreign Currency Non-Resident) account are as follows:
Multiple Currency Options
FCNR accounts allow you to hold deposits in 5 foreign currencies that are US Dollar (USD), Euro (EUR), British Pound (GBP), Japanese Yen, Canadian Dollar (CAD) and Australian Dollar (AUD). You can choose the currency that suits your preference.
Tenure
FCNR FD accounts typically come with tenures ranging from 1 year to 5 years.
Repatriability
Funds held in FCNR accounts are fully repatriable, meaning you can transfer both the principal amount and the interest earned back to your foreign account without any restrictions. This makes it convenient for NRIs to manage their foreign currency earnings.
Tax Benefits
Interest earned on FCNR deposits is tax-free in India for NRIs. However, you may still be liable for taxes in your country of residence. It’s essential to consult with a tax advisor to understand the tax implications based on your specific situation.
Joint Account Facility
Union Bank of India FCNR accounts can be held jointly with other NRI/s or with resident Indians. In case the account is held jointly with NRIs, the mandate of operation may be as per the account holder’s choice. Whereas, if the account is held jointly with resident Indians (close relative as per RBI guidelines) and the mandate of operation will only be “Former or Survivor”.
Loan Facility
NRIs can also avail loans against their FCNR deposits. These loans are available to the depositor as well as to the third parties at the request of the depositors. The Bank also provides loans against FCNR (B) deposits in foreign currency but to the depositor only.
Risk Management
FCNR accounts are beneficial for NRIs who want to protect their foreign currency earnings from exchange rate fluctuations. The account allows you to hold funds in foreign currency, reducing the risk of currency depreciation.
Contact SBNRI
SBNRI is an online one-stop platform for expert services and advisory on all major NRI specific aspects including NRI FD schemes.To get end to end assistance with booking of FCNR(B) Fixed Deposits, you can connect with our expert using the button at the end of the article. You can also browse through the NRI Account Opening grid that we have prepared specially for NRIs and get expert advisory and assistance seamlessly and complete the entire process in the comfort of your home. Also, visit our blog and YouTube Channel for more details.
