What is Federal Bank NRE Account?
A Federal Bank NRE (Non-Resident External) Account is a savings or current account designed for Non-Resident Indians (NRIs). It allows NRIs to deposit their foreign income in Indian Rupees while enjoying tax benefits in India. The account balance and interest earned are fully repatriable, meaning they can be transferred abroad.
The interest earned from the Federal Bank NRE account is tax-free in India. This account provides easy access to funds, helps manage foreign earnings, and simplifies transactions between India and abroad.
Key Features of Federal Bank NRE Account
NRE accounts at Federal Bank come with several essential features tailored for NRIs:
- Repatriation of Funds: NRE accounts allow for seamless repatriation of funds to and from India, enabling NRIs to transfer money without restrictions.
- Tax Benefits: Interest earned on NRE accounts is exempt from Indian income tax, making them an attractive option for managing foreign income.
- Currency Management: Funds in NRE accounts are maintained in Indian Rupees (INR), which helps protect against currency fluctuations.
- Joint Account Facility: NRIs can open NRE accounts jointly with another NRI, facilitating shared financial management.
Types of Federal Bank NRE Savings Accounts
The following list summarizes the different types of NRE accounts available at Federal Bank:
-
Fed NRI Power
- Minimum Balance: ₹5,000
- Offers online and mobile banking services.
- Provides access to digital passbooks and alerts.
- Ideal for NRIs seeking basic banking features.
-
Fed NRI Premium
- Minimum Balance: ₹25,000
- Includes a Visa Platinum international debit card.
- High cash withdrawal limits for convenience.
- Features dedicated customer support for premium services.
-
Fed NRI Privilege
- Minimum Balance: ₹1,00,000
- Unlimited demand drafts and a Visa Platinum debit card.
- Exclusive discounts and offers tailored for account holders.
- Priority customer service for enhanced banking experience.
-
SB NRE Eve+
- Minimum Balance: ₹50,000
- Designed specifically for women with unique privileges.
- Features include airport lounge access and birthday rewards.
- Offers a higher daily limit for ATM withdrawals and shopping.
-
NR Fedfirst
- Minimum Balance: ₹1,000
- Tailored for the youth to promote savings and investment education.
- Provides a fully loaded banking experience with essential features.
- Encourages financial literacy among young NRIs.
-
Fed NRI Care
- Minimum Balance: ₹1,000
- Basic account with low balance requirements.
- Access to modern banking channels like mobile and internet banking.
- Suitable for NRIs looking for simplicity in banking services.
Federal Bank NRE Savings Account Interest Rates
The following table lists the Federal Bank NRE Savings Account interest rates for 2024:
| Balance Slab |
Interest Rate (p.a.) |
| Less than ₹5 Lakhs |
- 3.45% below RBI's Repo Rate |
| ₹5 Lakhs to less than ₹50 Lakhs |
- 3.45% below RBI's Repo Rate for balance < ₹5 Lakhs
- 3.40% below RBI's Repo Rate for balance ≥ ₹5 Lakhs |
| ₹50 Lakhs to less than ₹2 Crores |
- 3.45% below RBI's Repo Rate for balance < ₹5 Lakhs
- 3.40% below RBI's Repo Rate for balance < ₹50 Lakhs
- 2.75% below RBI's Repo Rate for balance ≥ ₹50 Lakhs |
| ₹2 Crores to less than ₹5 Crores |
- 3.45% below RBI's Repo Rate for balance < ₹5 Lakhs
- 3.40% below RBI's Repo Rate for balance < ₹50 Lakhs
- 2.75% below RBI's Repo Rate for balance < ₹2 Crores
- 2.50% below RBI's Repo Rate for balance ≥ ₹2 Crores |
| ₹5 Crores to less than ₹50 Crores |
- 3.45% below RBI's Repo Rate for balance ≤ ₹1 Lakh
- 1.00% below RBI's Repo Rate for remaining balance above ₹1 Lakh |
| ₹50 Crores to less than ₹175 Crores |
- 3.45% below RBI's Repo Rate for balance ≤ ₹1 Lakh
- 0.50% below RBI's Repo Rate for remaining balance above ₹1 Lakh |
| ₹175 Crores to less than ₹300 Crores |
- 3.45% below RBI's Repo Rate for balance ≤ ₹1 Lakh
- 0.65% above RBI's Repo Rate for remaining balance above ₹1 Lakh |
| ₹300 Crores and above |
- 3.45% below RBI's Repo Rate for balance ≤ ₹1 Lakh
- 0.80% above RBI's Repo Rate for remaining balance above ₹1 Lakh |
Note: Interest rates are linked to the RBI Repo Rate, which is currently at 6.50% as of December 2024. Rates may change based on revisions by the RBI and are credited quarterly based on daily balances maintained in the account.
Federal Bank NRE Term Deposit Interest Rates
The fixed deposit interest rates for NRIs with the Federal Bank NRE Term Deposit Account are as follows:
| Period |
Single Deposit Less than ₹300 Lakhs |
| 1 year |
7.00% p.a. |
| >1 year to 399 days |
7.25% p.a. |
| 400 days |
7.35% p.a. |
| 401 days to < 2 years |
7.25% p.a. |
| 2 years to 776 days |
7.15% p.a. |
| 777 days |
7.40% p.a. |
| 778 days to < 3 years |
7.15% p.a. |
| 3 years to < 50 months |
7.10% p.a. |
| 50 Months |
7.40% p.a. |
| >50 months to 5 years |
7.10% p.a. |
| >5 years |
6.60% p.a. |
Eligibility Criteria to Apply for a Federal Bank NRE Account
An NRI must fulfill the following conditions to qualify for Federal Bank NRE Account in India:
- Age Requirement: Applicants must be at least 18 years old.
- Nationality: Non-Resident Indian with valid NRI status proof.
Documents Required to Apply for Federal Bank NRE Account
The list of documents required for opening a Federal Bank NRE Account are as follows:
- Document Validity: Passport and NRI status proof must have a minimum validity of 6 months from the date of application.
- Required Documents:
- Copies of passport and valid visa.
- Proof of overseas address.
- Passport-size photographs.
- PAN card or Form 60/61 (if PAN is unavailable).
- Document Verification: Documents need to be verified by:
- Authorized representatives from Indian scheduled commercial banks abroad.
- Foreign banks affiliated with Indian banks.
- Notary Public, Court Magistrate, Judge, or Indian Embassy/Consulate in the applicant's country.
Benefits of a Federal Bank NRE Account for an NRI
Following are the key benefits offered to an NRI by applying for a Federal Bank NRE Account:
- Tax-Free Interest: Interest earned on the account is exempt from Indian income tax.
- Repatriation of Funds: Both principal and interest are fully repatriable to your home country.
- Easy Foreign Deposits: Deposit funds in foreign currency and maintain the account in Indian Rupees.
- Attractive Interest Rates: Enjoy competitive interest rates for savings and fixed deposits.
- Global Access: Manage your account anytime through internet and mobile banking.
- Nomination Facility: Add a nominee for easy account management.
- Joint Account Option: Open the account jointly with another NRI.
- Loan Facility: Avail loans against your deposit for personal or business needs.
Conclusion
The Federal Bank NRE Account is a convenient option for NRIs to manage their income earned abroad. It offers tax-free interest, easy repatriation, and multiple banking services. With attractive features and 24/7 access, it simplifies banking for those living overseas.
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