FCNR Deposit (Foreign Currency Non Resident) account is a fixed deposit account offered by banks in India to non resident Indians (NRIs) and is operated in foreign currency. These are quite popular investments for NRIs because of the higher interest rate offered by banks in India as compared to their country of residence. For e.g. As of today State Bank of India offers 1.53% interest on its FCNR (US Dollar) deposit for 5 year term; in comparison Wells Fargo offers 0.02% for all tenures of CD Deposit (Fixed deposit).
The second benefit is the principal and interest earned is fully repatriable, which means NRIs can transfer their money back without much formalities.
The third benefit is the investor has NO currency exchange risk as you deposit in foreign currency, the interest earned is in foreign currency and when you withdraw you get back the amount in currency in which the deposit was made.
The fourth benefit is the interest earned on FCNR deposits are tax free in India. However it may be taxable in their country of residence.
Get Best NRE Fixed Deposit Interest Rates
NRE Fixed Deposit scheme is a very popular investment option for NRIs. The interest earned is tax free. To help you choose the best NRE FD, we compare the interest rates on fixed deposit across all major 48 banks in India including government, private, foreign and small financial banks in India every month.
Most banks accept deposit in USD (US Dollar), GBP (Pound), EUR (Euro), AUD (Australian Dollar), CAD (Canada Dollar), CHF (Swiss Franc), SGD (Singapore Dollar), JPY (Japan Yen). A few banks also accept deposit in HKD (Hong Kong Dollar), NZD (New Zealand Dollar) and SEK (Swedish Krona).
This post compares the interest rate offered on US Dollar FCNR Deposits.
US Dollar FCNR Deposit Rates
The table below compares the interest rates offered on US Dollar FCNR deposits across various tenures. The highest FCNR rates have been highlighted.
As can be seen Ratnakar Bank, Yes Bank, Tamilnad Mercantile Bank, Karur Vysya Bank & IDFC First Bank pays highest interest on FCNR deposits in US Dollars.
| Bank | 1 year | 2 Years | 3 Years | 4 Years | 5 Years |
|---|---|---|---|---|---|
| Axis Bank | 0.50% | 0.30% | 0.45% | 0.55% | 0.60% |
| Bandhan Bank | 0.98% | 1.05% | 1.27% | 1.53% | 1.78% |
| Bank of Baroda | 0.58% | 0.65% | 0.87% | 1.13% | 1.38% |
| Bank of India | 0.98% | 1.05% | 1.27% | 1.53% | 1.78% |
| Canara Bank | 0.98% | 1.05% | 1.27% | 1.53% | 1.78% |
| City Union Bank | 0.73% | 0.80% | 1.02% | 1.28% | 1.53% |
| DCB Bank | 1.25% | 1.25% | 1.00% | 1.00% | 1.00% |
| Dhanalakshmi Bank | 1.22% | 0.26% | 0.44% | 0.65% | 0.87% |
| HDFC Bank | 0.01% | 0.01% | 0.01% | 0.01% | 0.20% |
| ICICI Bank | 0.23% | 0.30% | 0.52% | 0.78% | 1.03% |
| IDBI Bank | 0.98% | 1.05% | 1.27% | 1.53% | 1.78% |
| IDFC Bank | 0.75% | 1.25% | 1.75% | 2.70% | 1.00% |
| Induslnd Bank | 1.30% | 1.30% | 1.35% | 1.50% | 1.60% |
| Karnataka Bank | 0.83% | 0.90% | 1.32% | 1.58% | 1.83% |
| Karur Vysya Bank | 1.49% | 1.41% | 1.92% | 2.03% | 2.28% |
| Kotak Mahindra Bank | 0.10% | 0.10% | 0.01% | 0.01% | 0.01% |
| Punjab National Bank | 0.98% | 1.05% | 1.27% | 1.53% | 1.78% |
| Ratnakar Bank | 1.95% | 2.00% | 2.50% | 2.60% | 2.70% |
| South Indian Bank | 0.88% | 0.90% | 1.12% | 1.38% | 1.63% |
| State Bank of India | 0.73% | 0.80% | 1.02% | 1.28% | 1.53% |
| Tamilnad Mercantile Bank | 1.23% | 1.30% | 1.47% | 1.93% | 2.18% |
| Yes Bank | 1.40% | 1.50% | 1.70% | 1.75% | 1.80% |
| Wells Fargo (US benchmark) | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% |
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FCNR Account Rules
- The minimum deposit tenure for FCNR FD is 1 year and maximum tenure is 5 years.
- The interest is compounded half-yearly.
- The minimum amount for FCNR deposit varies by bank but is generally USD 1,000
- In most cases there is NO penalty for pre mature closure of FCNR deposit account. However in case of premature closure before completion of 1 year, no interest would be paid.
FCNR Deposit Account USD FAQs
✅ What is FCNR deposit?
FCNR Deposit (Foreign Currency Non Resident) account is a fixed deposit account offered by banks in India to non resident Indians (NRIs) and is operated in foreign currency.
✅ Can I get loan against FCNR deposit?
Most banks offer loan up to 85% of FCNR deposit. This can be a good option for short term emergency loans.
✅ Is FCNR deposit a good investment for NRIs?
FCNR is a very good investment option for NRIs because of the following reasons:
– The interest offered is better than they can get in their home country
– Principal and interest earned is fully repatriable
– There is No currency risk
– The interest earned is tax free
– You can borrow against FCNR deposit in case of emergency
✅ Who can open FCNR deposit Account?
All NRI/ PIO/ OCIs adults looking to retain their money in foreign currency for good returns can open FCNR account.
✅ What are documents required for opening FCNR Account?
You need your Passport & relevant address proof along with the filled up application form to open an FCNR account. You can visit ICICI Bank page to know more.
FCNR rates have not been updated since Feb 2020
This information on the rates is incorrect.
What kind of Deposit Insurance is available on the USD deposits in CDs.
With all the Bank frauds and bank insolvencies we hear on the news I am wondering if it is safe to put the hard earned savings in Indian banks.
Hi
want to invest NRE FD with forward contract for 5 year, Bank offering return is 9.6%final yield where NRE FD is Just 7.6 to 8% also i don’t have plan to re convert back to foreign account or in other words only used in India
My Question is today I have NRI status but might be after 5 year or before maturity my status will not NRI or I am normal Indian Residence then In that condition what will be taxes liability, did I need to pay taxes on Interest earn on FCNR forward contract or not
And this project is good or not ??
I asked same Question to bank RM but look like they don’t have clear Idea on this
The previous year in which you become a resident under FEMA the interest becomes taxable from that year. You are suppose to declare to the Bank that you have become a resident but this will continue to be treated as NRE deposit by bank. There will be no TDS but you have to calculate your interest and pay advance tax and offer it to tax.
Your rates are not updated. For example Karur Vysya bank change their rate every month. Please update if not it is point less to check your site as it would be better to go to the respective bank website and check the same.
two year tenor is 4.09 and not 4.16
These are old rates. Please update. Thanks
These rates are all wrong check the FCNR rates before posting this article.
Hi.. Good information… I am staying in UAE.. and planning to relocate to India next year.. till how long I can have FCNR deposits after coming back… where my residence visa will we cancelled.
Good information.
Is it possible to transfer FCNR from one bank to another?
Yes you can transfer FCNR from one bank to another on maturity or if you do pre-mature withdrawal.
HI, IDFC Bank also offer FCNR Deposits in US$, GBP & Euro. Interest rate link is provided here. They have better interest rates in US% than almost all the banks. 3.75% & 3.8% for US$
https://www.idfcbank.com/content/dam/idfc/image/other-pdfs/Interest%20Rate.pdf
I have FCNR account in Bank of Baroda Andheri West. I am resident in South Africa. How do I close the account and how long does it take?
Please call BoB customer care for more information. If you have NRE account linked to the FCNR you can redeem it directly to the NRE account.