What is a Federal Bank FCNR Account?
A Federal Bank FCNR (Foreign Currency Non-Resident) account is a fixed deposit account for NRIs and PIOs to save their foreign earnings in different currencies like USD, GBP, or EUR. It offers good interest rates, and the interest earned is tax-free in India. The money in the account is safe from currency exchange rate changes and can be taken back to your home country without any restrictions. The Federal Bank FCNR account tenure is between 1 to 5 years and provides attractive rates, making it a reliable option for NRIs.
Features of Federal Bank FCNR Account
Federal Bank FCNR (Foreign Currency Non-Resident) Account offers a range of features for NRIs to keep their money in foreign currencies:
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Hold Earnings in Foreign Currencies: You can keep your earnings in foreign currencies of your choice while living in India.
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Protection from Exchange Rate Fluctuations: Your money is safe from changes in exchange rates, giving you financial stability.
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Earn Interest in Foreign Currency: The interest you earn is credited in the same foreign currency as your deposit.
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Available at All Federal Bank Branches: You can open an FCNR account at any branch of Federal Bank.
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Flexible Deposit Period: You can choose the length of time you want to keep your money in the account.
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Interest After One Year: To start earning interest, your deposit must stay for at least one year.
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Loan Against FCNR Deposit: You can take a loan against your FCNR deposit, either in Indian Rupees or in foreign currency.
Federal Bank FCNR Account Interest Rates
| Period |
USD |
GBP |
EURO |
YEN |
CAD |
AUD |
CHF |
NZD |
SGD |
HKD |
| 1 Year Only |
5.60% |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| 1 Year 1 Day |
5.75% |
5.50% |
3.75% |
0.20% |
4.30% |
5.00% |
0.05% |
0.05% |
0.42% |
0.33% |
| 1 Year 2 Days to < 15 Months |
5.50% |
5.50% |
3.75% |
0.20% |
4.30% |
5.00% |
0.05% |
0.05% |
0.42% |
0.33% |
| 15 Months to < 2 Years |
5.00% |
5.50% |
3.05% |
0.20% |
4.30% |
5.00% |
0.05% |
0.05% |
0.42% |
0.33% |
| 2 Years to < 3 Years |
4.60% |
4.80% |
2.65% |
0.20% |
3.80% |
4.60% |
NA |
NA |
0.84% |
0.72% |
| 3 Years to < 4 Years |
4.00% |
4.00% |
2.00% |
0.20% |
3.30% |
4.00% |
NA |
NA |
0.78% |
0.74% |
| 4 Years to < 5 Years |
3.75% |
3.50% |
1.75% |
0.10% |
3.20% |
3.60% |
NA |
NA |
0.78% |
0.65% |
| 5 Years Only |
3.40% |
3.00% |
1.70% |
0.10% |
2.85% |
3.60% |
NA |
NA |
0.80% |
0.57% |
*These rates are effective as of December 2024.
Steps to Open Federal Bank FCNR Account
You can follow the steps mentioned below to open a FCNR account with Federal Bank:
Step 1 - Visit Branch or Apply Online: You can either visit your nearest Federal Bank branch or apply online if you are already a customer.
Step 2- Choose Account Type: You can select a Fixed Deposit (FD) or Term Deposit account.
Step 3- Select Currency: Select to open the account in popular foreign currencies like USD, GBP, EUR, JPY, AUD, CAD, etc.
Step 4 - Submit KYC Documents: Provide necessary documents like your Passport, Visa, OCI card, and address proof.
Step 5- Deposit Funds: Transfer the required minimum amount (usually $1,000 or equivalent in other currencies) into the account.
Step 6- Fill Application Form: Complete the account opening form with your correct personal and contact details.
Step 7- Account Activation: Once your documents are verified and the funds are deposited, your FCNR account will be activated.
Eligibility Criteria to Apply for Federal Bank FCNR Account
Following are the eligible individuals to open a Federal Bank FCNR account in India:
-
Eligible Applicants: Non-Resident Indians (NRIs) and Overseas Citizens of India (OCI) can open an FCNR account.
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Minimum Age: Applicants must be at least 18 years old.
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Residency Requirement: The applicant must have lived outside India for more than 182 days during the preceding financial year.
Documents Required to Apply for Federal Bank FCNR Account
The below mentioned documents are required to open a Federal Bank FCNR account, tailored for NRIs and OCIs:
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Passport (mandatory).
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Visa
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Overseas address proof (e.g., utility bill, bank statement).
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Indian address proof (if available).
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Recent passport-sized photographs.
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PAN card or Form 60/61.
Benefits of Opening a Federal Bank FCNR Account
Opening an FCNR account with Federal Bank brings many advantages, such as the following:
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Tax-Free Interest: The interest you earn is completely tax-free in India.
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Repatriable Funds: Both the principal and interest can be easily sent back to your home country.
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Nomination Facility: You can nominate someone to receive your funds if needed.
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Loan of Up to 75%: You can get a loan up to 75% of your deposit's value in Rupees.
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Income Tax Exemption: The interest you earn is exempt from income tax if you are an NRI.
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Wealth Tax Exemption: Your FCNR deposit is not subject to wealth tax.
Conclusion
Federal Bank FCNR account is a good option for NRIs to save their foreign income without exchange rate worries. It gives tax-free interest in India, good returns, and flexible tenures from 1 to 5 years. Due to easy money transfer and multiple currency options, it is a safe and simple way to grow your savings in 2024. Perfect for NRIs looking for a hassle-free banking option.
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