What is a Union Bank of India NRE Fixed Deposit?
The Union Bank of India NRE FD is a financial instrument through which Non-Resident Indians invest money for a predetermined time and grow that money by earning interest. Through NRE FDs, Non-Residents can easily manage their foreign-earned income in Indian rupees. The principal amount invested by the investor and the interest earned on it are completely repatriable, which allows for the transfer of their funds back to their home country when needed. The Union Bank of India NRE FD is one of the highly prioritized investment choices for NRIs.
Union Bank of India Interest Rates on NRE FD Account Deposits
Union Bank of India provides higher fixed deposit interest rates for various tenors, catering to your needs as investors. The Union Bank of India NRE FD rates amounting to less than ₹3 crore are as follows:
| Tenor |
Interest Rate (%p.a) amounts to less than 3 Crore |
| 1 year |
6.75 |
| >1 year to 398 Days |
6.75 |
| 399 Days |
6.75 |
| 400 days to 455 days |
6.90 |
| 456 days |
7.15 |
| 457 days to 2 years |
6.60 |
| > 2 years to 996 days |
6.60 |
| 997 days |
6.40 |
| >998 days to less than 3 Years |
6.60 |
| 3 years |
6.70 |
| > 3 Years to 5 years |
6.50 |
| >5 Years to 10 Years |
6.60 |
Note: These non-premature withdrawal NRE FD interest rates are effective from April 2025. Interest rates are subject to change. The minimum tenor is 1 year.
The interest rates received on Union Bank of India NRE fixed deposit accounts amounting to ₹3 crore to more than ₹25 crore are as follows:
| Tenor |
Rs.3cr. Up to
Rs.10 cr
|
>Rs.10cr. Up to
Rs.25cr.
|
>Rs.25cr. Up to
Rs.50cr.
|
>Rs.50cr.
Up to
Rs.100cr.
|
>Rs.50cr.
Up to
Rs.100cr.
|
| 61 - 90 Days |
2.95 |
2.95 |
2.95 |
2.95 |
2.95 |
| 91 - 120 Days |
2.95 |
2.95 |
2.95 |
2.95 |
2.95 |
| 121 - 180 Days |
2.95 |
2.95 |
2.95 |
2.95 |
2.95 |
| 6 Months- < 1 Year |
2.95 |
6.02 |
6.02 |
6.02 |
6.02 |
| 1 Year |
6.77 |
7.02 |
6.92 |
6.92 |
6.92 |
| > 1 Year to 2 Years |
6.52 |
6.52 |
6.52 |
6.52 |
6.52 |
| >2 Years to 3 Years |
6.02 |
6.02 |
6.02 |
6.02 |
6.02 |
Note: These non-premature withdrawal NRE FD interest rates are effective from April 2025. Interest rates are subject to change.
Features of Union Bank NRE Fixed Deposits
Union Bank of India’s Term deposits (FDs) offer specific features fulfilling the needs of many Non-Resident Indians. The features offered by Union Bank of India NRE FD are:
-
NRE FD accounts can be opened with a zero balance and can be funded later.
-
Higher interest rates than those of a savings account.
-
Interest received on the deposits is non-taxable.
-
A joint account can be opened with a resident Indian.
What Are the Eligibility Criteria for an Union NRE FD Account?
The following conditions are to be fulfilled in order to open a Union Bank of India NRE FD account:
-
The candidate must be a non-resident individual of Indian origin.
-
Must have one copy of a valid passport.
-
A document to verify Indian and overseas addresses.
-
Proof to establish NRI, PIO, or OCI status (if applicable).
How to Open an Union NRE FD Account?
To open an account and get good Union NRE FD rates, the following steps are to be followed:
-
For Existing Customers
Online Application:
To open a Union Bank of India NRE FD account, existing customers can take various routes, including visiting the website, using digital banking, availing doorstep banking, and by following the necessary steps and filling out relevant information such as the FD amount and tenor. Your Union Bank of India NRE FD account will then be opened easily.
You can add money to the account via overseas transfers, transfers from other NRE/FCNR accounts, or by depositing foreign currency you’ve brought into India.
-
For New Customers
New customers can open a Union Bank of India NRE FD account using two convenient methods.
Online Application:
Visit the Union Bank of India website, navigate to the NRI banking section, and follow the online instructions to open an NRE FD. You'll likely need to fill an online form and upload required documents.
Offline Application:
Visit any Union Bank branch in India. Request to open a Non-Resident External (NRE) Fixed Deposit account. Bank staff will guide you through the application process and required documentation.
Documents Required to Open Union Bank NRE FD Account
To open the Union NRE FD account, the following documents are to be submitted by you for the bank to review before opening your NRE FD account:
-
ID proof: Passport
-
Address proof (India & overseas)
-
Proof of NRI, PIO or OCI status
-
Passport-size photograph
-
Overseas work/residence proof (visa/permit)
-
Any other document required by the bank.
Conclusion
The Union NRE FD rates are higher than those of its counterparts, making it a viable choice for NRIs seeking a reliable and secure investment option. Interest earned on NRE FD deposits is exempt from tax deductions. The amount invested and the interest earned on it can be transferred back to your overseas account without any interruptions. With complete knowledge of the Union NRE FD rates, you can invest in a plan that aligns best with your financial aspirations to attain your personal and professional goals.
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