What is an FCNR Account?
An FCNR account is a term deposit account that allows NRIs to park their foreign currency earnings in India without worrying about currency conversion risks. The account is maintained in foreign currencies like USD, GBP, EUR, AUD, CAD, and others, offering flexibility and convenience for NRIs.
Key Features of Canara Bank FCNR Account
Below are the features of Canara Bank FCNR Account:
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Half-Yearly Interest Compounding: Interest is compounded semi-annually for term deposits.
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Not a Savings Account: FCNR accounts are strictly term deposit accounts.
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Premature Withdrawal Policy: Allowed, but interest is paid only after completing one year.
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Tax-Free Interest: Interest earned is non-taxable in India.
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Repatriability: Principal and interest are fully repatriable, making it easier to manage overseas finances.
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Funding Options: Open the account via transfers from an existing NRE account or through remittances from abroad.
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Loan Against Deposit: Loans can be availed over the deposit amount.
Benefits of Canara Bank FCNR Account
Below are the benefits of Canara Bank FCNR Account:
- Income Tax Exemption: The interest earned on FCNR deposits is completely tax-free in India.
- Freely Convertible: Funds can be transferred freely without any restrictions.
- No Exchange Loss: Deposits and withdrawals are in foreign currencies, eliminating exchange rate risks.
- Flexible Tenure: Choose a term between 1 to 5 years.
- Multiple Currencies: Available in USD, GBP, EUR, CAD, and AUD.
- Loan Facility: Loans can be availed against FCNR deposits.
- Nomination Facility: Nomination is allowed for added convenience.
- Joint Account: Joint accounts can be opened with another NRI.
Documents Required for Canara Bank FCNR Account
Below are the documents required for Canara Bank FCNR Account:
- ID Proof: Photocopy of valid passport or OCI/PIO card.
- PAN/ Form 60: PAN card or Form 60 in its absence.
- NRI Status Proof: Valid visa, work permit, or OCI/PIO card.
- Address Proof: Required for correspondence.
- Photographs: Recent passport-sized photographs.
- FATCA Declaration: Compliance with regulatory requirements.
Why Choose a Canara Bank FCNR Account?
The Canara Bank FCNR Account ensures secure savings in foreign denominations with attractive benefits like tax exemptions, repatriability, and flexible tenure. It’s an ideal solution for NRIs seeking financial growth without currency risks.