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  • Fixed Deposit BYTES FROM OUR KITCHEN

    FCNR Fixed Deposit

    A Non-Resident Indian (NRI) or Person of Indian Origin (PIO) can invest and maintain a term deposit in foreign currency in an account called FCNR (Foreign Currency Non-Resident Account). They can also earn interest from this term deposit. Only a few foreign currencies are accepted as deposit in FCNR Fixed Deposit accounts. The list of currencies that are accepted are:

    • Euro
    • BP (British Pound)
    • USD (US Dollar)
    • AUD (Australian Dollar)
    • JPY (Japanese Yen)
    • CAD (Canadian Dollar)

    These accounts are not savings accounts rather they are fixed deposits accounts.

    FCNR term deposits rates

    As per the SBI (State Bank of India) website the updated FCNR rates of interests on investing deposit in different currencies are:

    PERIOD GBP USD JPY AUD CAD EURO
    5 Years 1.90% 3.29% 0.05% 2.82% 2.45% 0.15%
    4-5 Years 1.82% 3.25% 0.05% 2.70% 2.39% 0.10%
    3-4 Years 1.71% 3.16% 0.05% 2.34% 2.31% 0.01%
    2-3 Years 1.56% 3.04% 0.05% 2.14% 2.18% 0.01%
    1-2 Years 1.34% 3.09% 0.02% 1.97% 2.04% 0.01%
    1 Year 1.34% 3.09% 0.02% 1.94% 2.04% 0.01%

    Some of the advantages of maintaining term deposits in FCNR are:

    • A deposit in an FCNR account is maintained in foreign currency which eliminates the problem of dealing with constant fluctuation of currency conversion rates.
    • The maturity term of these deposits ranges from 1 to 5 years.
    • The interest rates earned on these deposits are regulated by the RBI and are the same in all banks across the country although the rates of interest are generally higher than those provided by the countries wherein the NRI is residing.

    How does an NRI or PIO transfer funds to an FCNR account?

    In an FCNR account held by an NRI or PIO, money can only be deposited by overseas held funds. The different ways in which they can fund the account is:

    • The PIO or NRI can transfer funds from their overseas account to the FCNR account. This can be done via wire transfer, cheque transaction or online banking.
    • Funds can be transferred from an existing NRE account.
    • When an NRI or PIO visits the country, foreign currency notes or travelers cheques can be used to fund the FCNR account.

    Read more about: Pros and Cons of FCNR deposit

    Features of FCNR

    • FCNR (Foreign Currency Non-Resident) account can be only be opened by a PIO or NRI.
    • As the name states, a Foreign Currency Non-Resident account can only be opened with foreign currencies which eliminates the risk of fluctuating conversion rates.
    • An interest is paid on the FCNR account. It is controlled by the RBI and is the same across all banks.
    • The FCNR is not a savings account but is a term deposit. The term should have a minimum maturity of 1 year and a maximum maturity period of 5 years.
    • This account also has a nomination facility. The nominee can be any NRI, PIO or resident Indian.
    • The NRI or PIO can even apply for a loan facility against an FCNR account but these loans can't be used for real-estate, agricultural activities, or re-lending.
    • The currency available in the account can be changed to another currency but the cost incurred due to the difference in the value of the currencies is to be beared by the account holder.
    • The interest earned on these accounts are completely tax free and so is the principal. Although these accounts are subjected to wealth tax.

    Frequently asked questions

    1. Can an FCNR holder transfer funds from a third party account?  
    2. Funds can be transferred from a third party account only if the person who sends money to the FCNR account and the person who receives the money from the account are the same.

    3. What is the consequence when an FCNR account holder’s fixed deposit matures and he or she forgets about it?
    4. In this case, most banks will automatically renew the fixed deposit account and the account holder will keep earning the interest on it although there is an option to stop the automatic renewal. The account holder can open the account with the bank under non-renewal mode and give additional instructions as to what the bank should do on maturity of the term deposit.

    5. Can an NRI or PIO open an FCNR account as a joint account with another person who is a resident of India?
    6. Yes, an NRI or PIO cannot open an FCNR account as a joint account with another person who Is a resident of India.

    7. Is an FCNR account holder liable to protection against fluctuation in the value of the Indian currency?
    8. Since any funds in an FCNR account are to be maintained in the respective foreign currency and conversions into Indian rupee is not allowed, FCNR account holders are not affected by fluctuation in the Indian currency.

    9. Is interest earned on an FCNR account taxable?
    10. No, interest earned on an FCNR account is not taxable.

    11. Can loans related to an FCNR account be paid through local resources?  
    12. Yes, loans related to an FCNR account can be paid through local resources.

    13. What happens to the FCNR account of the NRI when he or she returns to India?
    14. For an NRI returning to India, he or she can wait till the time the FCNR account matures and then convert it into an RFC account.  

    15. Is there an exchange loss when a returning NRI transfers funds from an FCNR account to an RFC account?
    16. No, there is no exchange loss when a returning NRI transfers funds from an FCNR account to an RFC account.

    17. Can funds be withdrawn from the FCNR account before the deposit has matured?
    18. Yes, a withdrawal is allowed from the FCNR account before the term has matured at the    discretion of the bank but there is a penalty charge levied for the withdrawal. For premature withdrawals concerning FCNR accounts, no interest is to be paid by the bank to the account holder and further money may be charged by the bank to cover swap costs.

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    FCNR Fixed Deposit Reviews

    • HDFC Bank Fixed Deposit
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      I had fixed deposit in HDFC for the amount of Rs.10,000 then I withdrawn in two months I got some interest. I went to the bank for account opening within few minutes they helped to open the account. There is no charges for pre matured liquidity fund.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 25, 2019
    • HDFC Bank Fixed Deposit
      "Good Returns from HDFC"
      0.5 4.0/5 "Great!"
      As per the guidance , I taken a Fixed Deposit in HDFC . This is one year plan and worth enough to take this plan in HDFC comparing with the interest rate . I am really happy with the better returns for my FD . I thought of continuing after one year also .
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 13, 2019
    • HDFC Bank Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I am using HDFC Bank Fixed Deposit for the past 6 years ,using net banking is also good ,customer service is good .flexy deposit ,whenever required can take the amount and can deposit it later .There was no issues faced so far .The Banking service is good to me so far.I am satisifed with the banking service.
      Was this review helpful? 1
      , chennai
      Reviewed on May 13, 2019
    • Oriental Bank of Commerce Fixed Deposit
      "Trusted investment for the future"
      0.5 5.0/5 "Blown Away!"
      I have fixed deposit with Oriental Bank of commerce, they give interest rate around 7.5%when I was invested but I am not sure about current one. However there is no charges applicable for the fd maintenance, They have nice online banking to open or close the account and its a trusted one.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 13, 2019
    • ICICI Bank Fixed Deposit
      "Have to be more quick in their procedure"
      0.5 3.0/5 "Satisfactory"
      I have Fixed Deposit with ICICI also which was matured earlier even it was a tax free accounts they are charging some amount. Before the financial year completion, i need to submit the document to income department to get my fund but the procedure is too long and I did not get the money. I had done investment of 1L and 0.50L which am unhappy. I would suggest them to provide the bills on time after this experience have stopped investing with them.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 12, 2019
    • HDFC Bank Fixed Deposit
      "Very much convenient"
      0.5 5.0/5 "Blown Away!"
      My all time favorite is Fixed Deposit which is secured and I can count the returns on evey month which am most comfortable. My family all have them are having in HDFC account, the manager is very friendly and rendering the service. Am doing investment since 2011 and their services are more good than the profit.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 12, 2019
    • Axis Bank Fixed Deposit
      "Convenient fixed deposit"
      0.5 4.0/5 "Great!"
      My fixed deposit was opened with Axis bank, I invested around Rs. 1 lakh for one year. If I want I can also extend the tenure. I believe the rate of interest is more than 7% for per annum. I can also track the fixed deposit through online banking its more simple.
      Was this review helpful? 4
      , thane
      Reviewed on May 04, 2019
    • HDFC Bank Fixed Deposit
      "Userfriendly FD experience"
      0.5 4.0/5 "Great!"
      I do have fixed deposit with HDFC, I opened it through online there is no locking period, while opening I have specified the maturity date. Minimum deposit start from Rs. 5000, they are providing 7.3% per annum. Its safe and secured to invest money with HDFC.
      Was this review helpful? 2
      , bangalore
      Reviewed on May 03, 2019
    • SBI Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I am having fixed deposit with State Bank Of India ,interest is good .The banking service is good so far .I have not faced any issues so far .Money will be safe on this account .Whenever need money can take and can deposit as well .The banking service is good and satisfied so far .Will get frequent update as well. I am satisfied with the overall service.
      Was this review helpful? 6
      , faridabad
      Reviewed on Apr 30, 2019
    • Canara Bank Fixed Deposit
      "Good nservice"
      0.5 5.0/5 "Blown Away!"
      I am having fixed deposit with Canara Bank ,interest is good .The banking service is good so far .I have not faced any issues so far .Money will be safe on this account .Whenever need money can take and can deposit as well .The banking service is good and satisfied so far .Will get frequent update as well.
      Was this review helpful? 0
      , faridabad
      Reviewed on Apr 30, 2019
    • Punjab National Bank Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      Iam having fixed deposit with Punjab national bank ,interest is good .The banking service is good so far .I have not faced any issues so far .Money will be safe on this account .Whenever need money can take and can deposit as well .The banking service is good and satisfied so far .Will get frequent update as well.
      Was this review helpful? 0
      , faridabad
      Reviewed on Apr 30, 2019
    • SBI Fixed Deposit
      "Can do better"
      0.5 3.0/5 "Satisfactory"
      SBI gives only 6.7% of interest for the fixed deposit, there is some charges applicable for the per matured liquidity amount. They take 1% from the paid amount, its not flexible as HDFC. The customer dealing is also average to resolve the queries.
      Was this review helpful? 3
      , delhi
      Reviewed on Apr 29, 2019
    • HDFC Bank Fixed Deposit
      "Flexible Fixed deposit"
      0.5 5.0/5 "Blown Away!"
      HDFC Is more convenient to open and close the FD through online, they give better interest as per the RBI around 6.8%. The online portal is easy to track the fixed deposit details, the help desk is good to handle the queries. I am very much happy with HDFC. I can take the tenure from three months to max tenure.
      Was this review helpful? 0
      , delhi
      Reviewed on Apr 29, 2019
    • SBI Fixed Deposit
      "Good in services"
      0.5 4.5/5 "Excellent!"
      My fixed deposit is with State Bank of India. I can open and close this account online. The interest I earn is satisfactory. The customer services and response is good and in all it is a smooth process and there are no unwanted charges taken for the same.
      Was this review helpful? 4
      , bangalore
      Reviewed on Apr 29, 2019
    • HDFC Bank Fixed Deposit
      "Satisfied with the service"
      0.5 5.0/5 "Blown Away!"
      I have a fixed deposit account with HDFC Bank and the banking process is good. I could open this account online and the account has been beneficial too. I earn a good interest. I can also close this account without having to go in person to the bank. It can be done online too.
      Was this review helpful? 2
      , bangalore
      Reviewed on Apr 26, 2019
    • andhra Bank Fixed Deposit
      "Better"
      0.5 3.0/5 "Satisfactory"
      I have a fixed deposit with Andhra Bank because the service is good and have been maintaining savings account. The branch is near to my place. It was taken 10 years ago. They are giving 6.5% interest rate. The locking period is 2 years and its a flexible scheme.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 25, 2019
    • SBI Fixed Deposit
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      For SBI fixed deposit there is no locking period, as per the customer convenience they can chose 7 day to 10 years of term. There is pre matured charges they take it from the invest amount . SBI is trusted and reputed and upto Rs.10,000 deposit there is no tax deduction.
      Was this review helpful? 7
      , visakhapatnam
      Reviewed on Apr 24, 2019
    • HDFC Bank Fixed Deposit
      "Good Service I am getting"
      0.5 3.5/5 "Pretty good"
      I normal deposit a cash of either 10 or 15 k in my fixed deposit because I don't have much surplus cash . Nowadays just for the name sake depositing my money in FD . Though they provide very less returns but the guarantee of getting the money back is sure .
      Was this review helpful? 1
      , hyderabad
      Reviewed on Apr 23, 2019
    • Axis Bank Fixed Deposit
      "Very Assured Fixed deposit"
      0.5 5.0/5 "Blown Away!"
      I opened a Fixed deposit in Axis bank for one year of term period . They sent a physical copy for my fixed deposit which gives a good assurance about that bank . So that my nominee can be aware of my FD and can approach them very easily if something happens to me . I can check the status of my FD through on line itself .
      Was this review helpful? 1
      , hyderabad
      Reviewed on Apr 23, 2019
    • HDFC Bank Fixed Deposit
      "Excellent services"
      0.5 4.5/5 "Excellent!"
      The best bank for a fixed deposit is HDFC Bank. The customer support is good and they are responsive as well. They offer an interest like other bank on my savings. The best is there is no lock in period so I close this account when ever I want too and I can do it with just a click away online. Where as other banks they would ask me to go to the home branch.
      Was this review helpful? 4
      , new delhi
      Reviewed on Apr 16, 2019
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