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Karur Vysya Bank FCNR Rates
Karur Vysya Bank (KVB) offers Foreign Currency Non-Resident (FCNR) term deposits as an attractive investment option for Non-Resident Indians (NRIs) who wish to deposit money in foreign currency and earn tax-free interest. FCNR deposits shield investors from currency fluctuation risks since both principal and interest are maintained and repaid in foreign currency. This article explores the current FCNR rates offered by Karur Vysya Bank, along with the features, benefits, and frequently asked questions to help NRIs make informed decisions.
Returns as high
as 6.9%*
Includes life cover
Completely Tax free+
as 6.9%*
Includes life cover
Completely Tax free+
Maximum returns Offered by
Guaranteed
Highest
6.9%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
6.9%***
Public Provident Fund
(other popular options)
(15 Years)
Get Guaranteed returns up to 6.9%*
Fully Tax-Free* (unlike FD), Life Cover Included
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FD Interest Rates
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Karur Vysya Bank FD Interest Rates
- Karur Vysya Bank FCNR Rates
FCNR Deposit Rates at Karur Vysya Bank
Karur Vysya Bank provides FCNR deposits in multiple foreign currencies. The interest rates vary based on the deposit tenure and currency chosen.Â
| Period | USD | GBP | EUR | JPY | CAD | AUD |
| 1 Year and above but less than 2 Years | 5.03% | 4.47% | 2.42% | 0.73% | 2.76% | 4.10% |
| 2 Years and above but less than 3 Years | 4.39% | 4.22% | 1.42% | 0.73% | 2.26% | 3.85% |
| 3 Years and above but less than 4Years | 3.61% | 3.22% | 0.92% | 0.73% | 2.26% | 3.85% |
| 4 Years and above but less than 5 Years | 3.36% | 3.22% | 0.92% | 0.58% | 2.26% | 3.60%Â |
| 5 Years only | 3.36% | 3.22% | 0.92% | 0.58% | 2.26% | 3.60% |
Information About
Guaranteed Return Plans
Returns Before Tax
6.9%* (TAX-FREE)
Returns After Tax
6.9%*
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
*For annual premium upto ₹5 Lacs
Key Features and Benefits of KVB FCNR Deposits
Below are the key features and benefits of the NRI accounts for FCNR deposits:Â
- Currency Choice: Deposits can be held in popular convertible currencies, providing flexibility and convenience.
- Repatriability: Both principal and interest amounts are fully repatriable in the same foreign currency, safeguarding global access.
- Tenure Flexibility: Deposit tenure ranges from 1 to 5 years.
- Tax Benefits: Interest earned on FCNR deposits is exempt from Indian income tax.
- Loans Against Deposit: Borrowing against FCNR deposits is available to meet liquidity needs.
- No Exchange Rate Risk: Since the deposit and interest are maintained in foreign currency, customers are insulated from exchange rate fluctuations.
- Forward Contracts: NRIs can opt for forward contracts to fix the INR conversion rate upon maturity, providing protection against currency volatility if maturity proceeds are desired in Indian Rupees.
- Premature Withdrawal: No interest is payable if withdrawn before 1 year; thereafter, pre-closure penalties may apply.
How to Open an FCNR Account with Karur Vysya Bank?
NRIs and Persons of Indian Origin (PIOs) can open FD accounts by submitting the duly filled application form along with required KYC documents like valid passport, visa/green card, photographs, overseas and local address proof, and specimen signature verification by authorized officials. The account can be opened at any KVB branch in India or through the bank’s NRI cell by email. Initial remittance of funds in foreign currency is required to activate the account.
Conclusion
Karur Vysya Bank’s FCNR deposits offer NRIs a secure and lucrative way to invest in foreign currency deposits with the benefit of attractive interest rates, no tax on interest income, and protection against currency risk. The wide currency options and flexible tenure plans make it an ideal choice for NRIs seeking stable returns while preserving currency value.
FAQs
-
What currencies are supported for FCNR deposits at Karur Vysya Bank?
KVB FCNR deposits are available in USD, GBP, EUR, JPY, AUD, and CAD. -
Can I withdraw my FCNR deposit before maturity?
Withdrawals before completion of one year do not earn any interest. Pre-closure after one year is allowed, subject to penalties. -
Is the interest earned on FCNR deposits taxable in India?
No, interest earned on FCNR deposits is exempt from Indian income tax. -
Can I get a loan against my FCNR deposit?
Yes, loans against FCNR deposits are available at Karur Vysya Bank. -
How long is the FCNR deposit tenure?
Tenure options range from 1 year to 5 years. -
What happens if I become a resident Indian while holding an FCNR deposit?
The deposits can continue till maturity at the contracted rate if the depositor becomes resident Indian. -
Can I fix the INR conversion rate at maturity?
Yes, the bank offers forward contract options to lock in the INR conversion rate at deposit inception.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per
applicable tax slabs post 31st march 2023
#Discount offered by insurance company
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜Top 5 plans based on annualized premium, for bookings made through https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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