AU Small Finance Bank Increases FCNR and NRE Deposit Rates
AU Small Finance Bank has raised interest rates for FCNR(B) and NRE fixed deposits to provide competitive returns for non-resident Indians.
New Interest Rate Structure
The bank updated its interest rate offerings for Foreign Currency Non-Resident (FCNR) and Non-Resident External (NRE) fixed deposits. These adjustments aim to enhance the value proposition for NRI customers looking for stable investment avenues in India.
Under the new rate schedule, depositors can access interest rates of up to 7.60%. The specific rate applied to an account depends on the chosen tenure and the specific type of deposit account held by the customer.
Zero Forex Margin Feature
In addition to the interest rate hike, AU Small Finance Bank is highlighting its zero forex margin policy. This feature allows NRIs to manage their foreign exchange transactions with reduced costs during the deposit process.
By eliminating the margin on foreign exchange, the bank seeks to streamline the repatriation and deposit process for clients holding various international currencies. This move targets high-net-worth individuals and retail NRI segments looking to optimize their savings.
Key Deposit Benefits
The updated deposit schemes include several features designed for international clients:
- Interest rates reaching a maximum of 7.60%.
- Elimination of forex margins on specific transactions.
- Flexible tenure options for both FCNR(B) and NRE accounts.
- Currency diversity available for FCNR deposits.
The FCNR(B) accounts allow investors to hold funds in foreign currencies, providing a hedge against rupee volatility, while NRE deposits offer a way to invest Indian Rupee earnings into interest-bearing accounts with full repatriability.
