What is City Union Bank NRE Account?
A City Union Bank NRE Account is a Non-Resident External (NRE) account designed for Indians living abroad. It helps them transfer their foreign earnings to India while keeping the money in Indian Rupees. The interest earned on this account is tax-free, making it a good choice for NRIs. The account is fully repatriable, meaning you can easily send money back to your country of residence. You can open this account as a savings, current, or fixed deposit account, giving NRIs flexibility to manage their finances easily.
Types of City Union Bank NRE Accounts
The City Union Bank (CUB) offers different types of NRE Accounts for Non-Resident Indians (NRIs). Let us learn about them below:
-
CUB Savings Account for NRE
- Account for NRIs: This account is for non-residents to send money to India and take it back when needed. It can be opened with another NRI (Either Survivor/Former or Survivor) or with a resident family member (Former or Survivor). The resident can manage the account with a Power of Attorney.
- No Tax on Interest: Interest earned on the account is tax-free in India. Both the balance and interest can be sent abroad without any restrictions.
- Free Debit Card and Online Banking: Get a FREE VISA Debit Card accepted worldwide and enjoy FREE Net Banking for online transactions anytime.
- No Charges for Money Transfers from Abroad: There are no service charges for receiving money from foreign countries.
- Local Credits and Fund Transfers: Rent, dividends, and other income can be added to the account with a CA certificate. You can transfer money to and from NRE, FCNR, or NRO accounts as per RBI rules.
- Currency Conversion with GST: Converting foreign currency to Indian Rupees or vice versa is subject to GST as per government rules.
- Earn Attractive Interest: Enjoy competitive interest rates on daily closing balances to grow your savings.
-
CUB Fixed Deposit Account for NRE
- Flexible Fixed Deposits for NRIs: CUB offers attractive interest rates on Fixed Deposits with a tenure ranging from 1 to 10 years.
- Cumulative and Non-Cumulative Options: Choose between cumulative deposits (interest paid at maturity) or non-cumulative deposits (quarterly interest payouts).
- Joint Deposit Options: Open the deposit jointly with another NRI (Either or Survivor/Former or Survivor) or with a resident close relative (Former or Survivor).
- Tax-Free and Repatriable: Interest earned is tax-free in India, and the principal and interest are fully repatriable.
- Easy Transfers and No Charges: Funds can be transferred from NRE, FCNR, or NRO accounts (as per RBI guidelines), with no charges for inward remittances from abroad.
- Preclosure and Loan Options:
- No interest is paid if the deposit is closed before 1 year.
- Early closure after 1 year attracts penalties as per the bank’s policy.
- Loans can be availed against the deposit as per RBI rules.
- Additional Benefits: FREE CUB Net Banking to manage deposits and GST applies to currency conversion as per government rules.
-
CUB Recurring Deposit Account for NRE
- Recurring Deposit for NRIs: CUB offers RDs for periodic savings with monthly deposits. Tenures range from 1 to 10 years, providing flexibility.
- Joint Account Options: RDs can be opened jointly with another NRI (Either or Survivor/Former or Survivor) or with a resident relative (Former or Survivor).
- Tax-Free and Fully Repatriable: Interest earned is tax-free in India, and both the principal and interest are fully repatriable.
- No Charges for Inward Remittances: Funds from abroad can be credited without service charges, and transfers from NRE accounts are also allowed.
- Preclosure Rules: No interest is paid if the RD is closed before 1 year. Also, preclosure after 1 year attracts penalties as per the bank’s policy.
- Loan Against RD: Loans can be availed against the RD as per RBI guidelines and the bank’s policy.
- Additional Benefits: Currency conversion between INR and foreign currency attracts GST as per government rules, and the RD offers attractive interest rates.
City Union Bank NRE Savings Account Interest Rates
| Average Balance |
Rate of Interest (% p.a.) |
| Less than ₹1 lakh |
3.00% |
| Above ₹1 lakh and up to ₹10 lakh |
3.50% |
| Above ₹10 lakh and up to ₹49.99 crore |
4.00% |
| ₹50 crore and above |
5.00% |
*Rates effective from November 1, 2021.
City Union Bank NRE Term Deposit Account Interest Rates
The following table lists the NRE Term Deposit interest rates, which are effective from September 1, 2024:
-
CUB NRE Term Deposit Interest Rates (Non-Callable Deposits Below ₹1 Crore)
| Period |
Revised ROI (% p.a.) |
| 365 days to 400 days |
7.00% |
| 401 days to 3 years |
6.50% |
| Above 3 years to 10 years |
6.25% |
*Rates effective from September 1, 2024.
-
CUB NRE Term Deposit Interest Rates (Non-Callable Deposits Above ₹1Cr and Below ₹3 Cr)
| Period |
Revised ROI (% p.a.) |
| 365 days to 400 days |
7.10% |
| 401 days to 3 years |
6.60% |
| Above 3 years to 10 years |
6.25% |
*Rates effective from September 18, 2024.
-
CUB NRE Term Deposit PLUS Interest Rates (Callable Deposits ₹3 Cr and Above)
| Period |
₹3 Cr to < ₹5 Cr |
₹5 Cr to < ₹10 Cr |
₹10 Cr to < ₹15 Cr |
₹15 Cr to < ₹25 Cr |
₹25 Cr to < ₹50 Cr |
₹50 Cr to < ₹100 Cr |
₹100 Cr to ₹500 Cr |
| 365 Days to 400 Days |
7.70% |
7.70% |
7.80% |
7.80% |
7.90% |
7.90% |
7.90% |
| 401 Days to 3 Years |
6.70% |
6.70% |
6.70% |
6.70% |
6.70% |
6.70% |
6.70% |
| Above 3 Years to 10 Years |
6.70% |
6.70% |
6.70% |
6.70% |
6.70% |
6.70% |
6.70% |
*Rates effective from January 13, 2025.
-
CUB NRE Term Deposit PLUS Interest Rates (Non-Callable Deposits ₹3 Cr and Above)
| Period |
₹3 Cr to < ₹5 Cr |
₹5 Cr to < ₹10 Cr |
₹10 Cr to < ₹15 Cr |
₹15 Cr to < ₹25 Cr |
₹25 Cr to < ₹50 Cr |
₹50 Cr to < ₹100 Cr |
₹100 Cr to ₹500 Cr |
| 365 Days to 400 Days |
8.10% |
8.10% |
8.10% |
8.10% |
7.90% |
7.90% |
7.90% |
| 401 Days to 3 Years |
- |
- |
- |
- |
- |
- |
- |
| Above 3 Years to 10 Years |
- |
- |
- |
- |
- |
- |
- |
*Rates effective from January 13, 2025.
Eligibility Criteria to Open City Union Bank NRE Account
The following conditions must be fulfilled to open a CUB NRE Account in India:
- Account Holder: Only Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs) can open an NRE account.
- Age Requirement: The applicant must be at least 18 years old.
- Joint Accounts: NRE accounts can be opened jointly with a resident relative, provided they are closely related to the NRI/PIO.
Documents Required to Apply for City Union Bank NRE Account
The following essential documents must be submitted to open a CUB NRE Account by an NRI:
- ID Proof (Passport and valid visa/residence permit).
- Overseas Address Proof (utility bill, bank statement, etc.).
- PAN Card (for Indian tax compliance).
- Recent Passport-Sized Photos.
- Overseas Proof (work visa or residence permit).
- NRI Declaration (signed as per bank format).
- Initial Deposit (cheque or remittance details).
- Additional (if needed, Power of Attorney or FATCA/CRS forms).
Benefits of Opening a City Union Bank NRE Account
The key benefits of having a City Union Bank NRE Account in India are as follows:
- High Interest Rates: City Union Bank provides competitive interest rates on NRE accounts to help expatriates grow their savings effectively.
- Tax Benefits: Interest earned on NRE accounts is tax-free in India, making them a good choice for NRIs to avoid double taxation.
- Easy Fund Transfers: NRE accounts allow smooth money transfers between India and other countries, making it easy for NRIs to manage their finances.
- Flexible Tenure Options: Customers can choose fixed deposit tenures ranging from 1 year to 10 years, based on their financial goals.
- Loan Against Deposits: Account holders can take loans against their fixed deposits while still earning interest on the deposit.
- Online Banking Services: City Union Bank offers excellent online banking features like account management, fund transfers, and bill payments from anywhere in the world.
Conclusion
City Union Bank NRE Account is a simple and easy way for Non-Resident Indians to manage their savings. It offers good interest rates and allows easy transfer of money abroad. With online banking and helpful customer service, it makes accessing your funds convenient and secure. The City Union Bank remains a trusted choice for NRIs looking for a safe and reliable banking option.
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