What is an FCNR Account?
An FCNR account is a type of fixed deposit account that allows NRIs to deposit their money in foreign currency. One of its primary advantages is that it eliminates the need to convert foreign earnings into Indian Rupees (INR), thereby mitigating exchange rate risks. This makes it a practical and attractive option for many NRIs.
Features of Union Bank FCNR Account
Below are the key features of Union Bank FCNR Accoun:
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Designated Currencies:
Maintain your wealth in any of the five major freely convertible currencies supported by IDFC FIRST: USD, GBP, EUR, AUD, and SGD.
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Flexible Funding Sources:
You can fund your account through:
- Foreign inward remittances via banking channels.
- Personal cheques or traveler's cheques.
- Internal transfers by debiting your existing NRE or FCNR (B) accounts.
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Cross-Currency Conversion:
If you hold a convertible currency other than your target currency, you can easily convert it at prevailing cross-currency rates during the deposit booking.
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Instant Confirmation:
Enjoy the efficiency of immediate issuance of your FCNR (B) Deposit Advice/Receipt once the foreign currency instruments are realized.
Advantages of Union Bank FCNR Account
Listed below are the advantages of FCNR account under Union Bank of India:
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Attractive Yields:
Earn competitive Union Bank of India FCNR interest rates on your foreign currency holdings, fully regulated by the RBI. These rates allow your global earnings to grow faster than typical savings accounts in your country of residence.
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Zero Exchange Rate Risk:
Since the bank maintains your deposit in the original foreign currency, you are completely shielded from the volatility of the Indian Rupee.
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Global Currency Choice:
Diversify your portfolio by choosing from five major international currencies: USD, GBP, EUR, AUD, and SGD.
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Flexible Investment Horizon:
Align your savings with your future goals by selecting a maturity period ranging from 1 year (12 months) up to 5 years (60 months).
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Standardized Interest Calculation:
In line with international banking standards and RBI directives, interest is calculated based on a 360-day calendar year.
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Unique 180-Day Compounding:
Interest is calculated and added to your principal every 180 days. For any remaining period, interest is calculated for the actual number of days. You have the flexibility to receive this interest at maturity to benefit from the power of compounding.
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High Liquidity & Management:
Manage your funds with ease under current RBI guidelines. IDFC FIRST Bank allows for full repatriability of both principal and interest, meaning you can move your money back overseas whenever needed.
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Accessible Entry Limits:
Start your investment journey with accessible minimum deposits:
- USD 1,000
- GBP 500
- EUR 1,000
- AUD 1,000
- SGD 1,000
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DICGC Protection:
Your FCNR deposits are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a limit of ₹5 Lakh (including principal and interest) per depositor, providing an extra layer of security for your capital.
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