Bank of Baroda raises interest rates on FCNR deposits. Rates on various currencies under FCNR are raised by 20 basis points, up to a maximum of 1.45%. Starting on November 16 and lasting through December 15 are these interest rates. Additionally, the rates will be valid for both new and renewed FCNR deposits at maturity.
Here are the latest interest rates:
FCNR in USD:
From 4 to 5-year tenures, the FCNR rate is increased by 1.4% in dollar terms. The rate will now be 3.80% on tenures of 4 years to less than 5 years, down from 2.40% previously, and 3.90% on tenures of 5 years, up from 2.50% previously.
In addition, the bank increased the rate on loans with a term of 3 to 4 years by 1% to 3.70% from the previous 2.70%. While the rates on tenure of 2 years to less than 3 years have increased by 45 basis points to 3.45% from 3% and on tenure of 1 year to less than 2 years by 60 basis points to 4.25% from 3.65%,
FCNR in GBP:
BoB increased FCNR rates on deposits made in pounds sterling. By 20 basis points on tenures ranging from three to five years, bringing the interest rate to 2.45% from the previous 2.25%.
The rate has also increased from 2.65% in 1 year to 3.70% on tenure of less than 2 years. However, the bank reduced the interest rate on a two-year to less than three-year term from 2.65% to 2.35% by 30 basis points.
FCNR in Euro:
The FCNR rates in this case have been held constant at 0.50% for tenures of one year to three years or less. On tenures of 3 years to less than 5 years, however, the rates have increased from the previous 0.10% by 40 basis points to 0.50%. While the FCNR has increased from the previous 0.15% by 35 basis points to 0.50% over a 5-year duration.
In Australian dollars: FCNR
The FCNR in AUD is increased by the most—by 1.45%—to 3.45% on a 5-year term from the previous 2%. While the rates have gone up by 1% on tenures of 3 years or less to 3% from the previous 2% and by 1.2% on tenures of 4 years to less than 5 years to 3.20% from the previous 2%, respectively.
The interest rates have increased from 2% to 2.75% on a 2 year to less than 3 year term, a 75 basis point increase. Additionally, the rate on loans with a 1 to 2 year term has increased from 2.05% to 2.60%, a 55 basis point increase.
BoB has said on its website that FCNR is not allowed to provide older people or staff members any additional interest. Additionally, the bank reserves the right to alter these rates.
What are deposits FCNR (B)
FCNR deposit plan allows for complete maturity funds, including principal and interest, to be entirely remitted in foreign currency (USD, GBP, EURO, or AUD) at a location of your choice, according to the Bank of Baroda website.
A transfer of funds will be made from one NRI’s FCNR account to another NRI’s FCNR, non-resident (external) rupee savings, or fast-deposit account.
Loan Against FCNR (B) Foreign Currency Deposits in India
Each quarter, interest owed on the mortgage/overdraft account must be immediately credited (March, June, September and December). The fixed deposit will be prematurely withdrawn to pay down the amount of the mortgage or overdraft if there are two consecutive quarters of interest cost default.