A Foreign Currency Non-Repatriable (FCNR) account is a type of fixed deposit account that is held in foreign currencies by Non-Resident Indians (NRI). There are several Indian banks that offer FCNR accounts at attractive interest rates.
FCNRs are a great option for NRIs because the interest earned on these are exempt from tax in India. Also, FCNRs in India offer a much higher rate of interest when compared to other countries.
Below is the list of banks that provide the best interest rates on FCNR Accounts:
South Indian Bank offers various NRI services including FCNR accounts. In the case of premature withdrawal, there is no need to pay penalty. They offer a high interest rate of 3.62% on FCNR accounts in Australian dollars.
| Tenure | CAD | JPY | CHF | AUD | EURO | GBP | USD |
|---|---|---|---|---|---|---|---|
| 12 months to less than 24 months | 3.11% | 1.10% | 0.46% | 2.93% | 0.81% | 1.76% | 3.14% |
| 24 months to less than 36 months | 3.20% | 1.08% | 0.55% | 3.06% | 0.88% | 1.93% | 3.31% |
| 36 months to less than 48 months | 3.34% | 1.09% | 0.74% | 3.23% | 1.08% | 2.09% | 3.44% |
| 48 months to less than 60 months | 3.41% | 1.12% | 0.88% | 3.51% | 1.29% | 2.20% | 3.51% |
| 60 months | 3.45% | 1.15% | 1.02% | 3.62% | 1.47% | 2.29% | 3.57% |
Maharashtra Bank provides competitive interest rates on FCNR deposits. They offer deposits in a wide range of currencies such as US Dollar, British Pound, Euro, Australian Dollar, Canadian Dollar, and Singapore Dollar. The minimum period for a deposit is 12 months. They offer an interest rate of 2.50% on US Dollar deposits for 5 years. The interest offered on Australian dollar deposits are much higher, at 3.12% for the same tenure.
| Tenure | SGD | CAD | AUD | EURO | GBP | USD |
|---|---|---|---|---|---|---|
| 5 years | 2.50% | 2.95% | 3.12% | 0.72% | 1.79% | 3.32% |
| 48 to 57 months | 2.40% | 2.91% | 3.01% | 0.54% | 1.70% | 3.26% |
| 36 to 45 months | 2.00% | 2.59% | 2.48% | 0.58% | 1.34% | 2.94% |
| 24 to 33 months | 1.82% | 2.45% | 2.31% | 0.38% | 1.18% | 2.81% |
| 12 to 21 months | 1.56% | 2.31% | 2.13% | 0.26% | 0.96% | 2.59% |
Indian Overseas Bank offers good interest rates on FCNR accounts and they also deal in a wide range of currencies. They deal in an extensive range of currencies. All deposits can be made for a tenure ranging from 1 to 5 years.
| Tenure | SGD | NZD | CHF | AUD | CAD | JPY | EURO | GBP | USD |
|---|---|---|---|---|---|---|---|---|---|
| 1 year to 23 months | 1.31% | 2.50% | 0.00% | 2.63% | 3.06% | 1.05% | 1.01% | 1.71% | 3.34% |
| 2 years to 35 months | 1.57% | 2.68% | 0.00% | 2.81% | 3.20% | 1.08% | 1.13% | 1.93% | 3.56% |
| 3 years to 47 months | 1.75% | 2.89% | 0.00% | 2.98% | 3.34% | 1.09% | 1.58% | 2.09% | 3.94% |
| 4 years to 59 months | 1.90% | 3.07% | 0.00% | 3.26% | 3.41% | 1.12% | 1.79% | 2.20% | 4.01% |
| 5 years | 2.00% | 3.23% | 0.00% | 3.37% | 3.45% | 1.15% | 1.97% | 2.29% | 4.07% |
Tamilnad Mercantile Bank provides a competitive interest rate on all currency FCNR deposits. At present, they are offering a rate of 4.32% on 5-year deposits in Australian dollars, the highest compared to other currency interests on FCNRs.
| Tenure | CHF | JPY | AUD | CAD | EUR | GBP | USD |
|---|---|---|---|---|---|---|---|
| 1 year to less than 2 years | 0.65% | 1.30% | 3.13% | 3.31% | 1.01% | 1.96% | 3.34% |
| 2 years to less than 3 years | 0.80% | 1.33% | 3.31% | 3.45% | 1.13% | 2.18% | 3.56% |
| 3 years to less than 4 years | 1.24% | 1.59% | 3.73% | 3.84% | 1.58% | 2.59% | 3.94% |
| 4 years to less than 5 years | 1.59% | 1.82% | 4.21% | 4.11% | 1.99% | 2.90% | 4.21% |
| 5 years | 1.72% | 1.85% | 4.32% | 4.15% | 2.17% | 2.99% | 4.27% |
Vijaya Bank offers a variety of international banking services and products specifically catered to NRIs. FCNR is one of their financial products. At present, the highest rate offered by the bank are on FCNR deposits in US dollars, which pays interest at the rate of 3.32% for 5 years. The second best rate is offered on deposits in Australian dollars.
| Tenure | CAD | AUD | EUR | USD | GBP |
|---|---|---|---|---|---|
| 1 year to 23 months | 2.56% | 2.38% | 0.26% | 2.84% | 0.96% |
| 2 years to 35 months | 2.70% | 2.56% | 0.38% | 3.06% | 1.43% |
| 3 years to 47 months | 2.84% | 2.73% | 0.58% | 3.19% | 1.59% |
| 4 years to 59 months | 2.91% | 3.01% | 0.79% | 3.26% | 1.70% |
| 5 years | 2.95% | 3.12% | 0.97% | 3.32% | 1.79% |
Yes Bank provides a wide range of financial services that cater to NRIs. Their highest rate of interest is 3.10% on FCNRs in US dollars for a tenure that ranges from 2 years and 35 months.
| Tenure | HKD | SGD | AUD | CAD | JPY | EURO | GBP | USD |
|---|---|---|---|---|---|---|---|---|
| 1 year to 23 months | 1.65% | 2.00% | 2.40% | 2.20% | 0.40% | 0.05% | 1.00% | 3.05% |
| 2 years to 35 months | 2.00% | 2.10% | 2.60% | 2.40% | 0.10% | 0.10% | 1.40% | 3.10% |
| 3 years to 47 months | 1.90% | 2.10% | 2.75% | 2.40% | 0.10% | 0.10% | 1.40% | 3.00% |
| 4 years to 59 months | 2.00% | 2.10% | 2.50% | 2.40% | 0.10% | 0.20% | 1.40% | 3.00% |
| 5 years | 1.85% | 2.10% | 2.50% | 2.40% | 0.00% | 0.20% | 1.40% | 3.00% |
RBL Bank offers FCNR accounts in all major currencies. The interest earned on these FCNR deposits are paid on a half-yearly basis and deposits are renewed automatically. They offer a high yielding rate on Australian dollar deposits, which is 2.68%.
| Tenure | CHF | CAD | JPY | SGD | AUD | EURO | GBP | USD |
|---|---|---|---|---|---|---|---|---|
| 1 year to 23 months | 0.10% | 2.25% | 0.43% | 1.95% | 2.25% | 0.05% | 1.22% | 2.80% |
| 2 years to 35 months | 0.10% | 2.45% | 0.42% | 2.05% | 2.45% | 0.10% | 1.44% | 2.82% |
| 3 years to 47 months | 0.15% | 2.45% | 0.31% | 2.05% | 2.60% | 0.10% | 1.44% | 2.80% |
| 4 years to 59 months | 0.15% | 2.50% | 0.25% | 2.05% | 2.57% | 0.30% | 1.51% | 2.80% |
| 5 years | 0.15% | 2.60% | 0.25% | 2.05% | 2.68% | 0.35% | 1.60% | 2.85% |
IDBI is a well-reputed bank that offers FCNR facilities in major foreign currencies. Their USD deposits pay 3.32% for 5 years and AUD deposits pay 3.37%, the highest when compared to other currencies.
| Tenure | CHF | HKD | SGD | JPY | CAD | AUD | EUR | GBP | USD |
|---|---|---|---|---|---|---|---|---|---|
| 1 year to 23 months | 0.00% | 2.17% | 1.92% | 0.20% | 2.44% | 2.63% | 0.07% | 1.31% | 2.84% |
| 2 years to 35 months | 0.00% | 2.55% | 2.20% | 0.20% | 2.71% | 2.81% | 0.21% | 1.51% | 3.06% |
| 3 years to 47 months | 0.00% | 2.78% | 2.34% | 0.20% | 2.88% | 2.98% | 0.42% | 1.68% | 3.19% |
| 4 years to 59 months | 0.00% | 2.90% | 2.43% | 0.20% | 2.98% | 3.26% | 0.61% | 1.78% | 3.26% |
| 5 years | 0.00% | 3.00% | 2.52% | 0.20% | 3.07% | 3.37% | 0.80% | 1.88% | 3.32% |
DCB Bank provides a range of flexible deposit options for NRIs. At present they are offering the highest interest on US, Australian and Canadian dollar currency deposits.
| Tenure | USD | GBP | EUR | CAD | AUD |
|---|---|---|---|---|---|
| 1 year to 23 months | 3.00% | 1.25% | 0.20% | 2.40% | 2.70% |
| 2 years to 35 months | 3.00% | 1.40% | 0.20% | 2.40% | 2.70% |
| 3 years | 3.30% | 1.50% | 0.25% | 2.45% | 3.30% |
| 4 years | 3.30% | 1.60% | 0.25% | 2.45% | 3.30% |
| 5 years | 3.30% | 1.60% | 0.25% | 2.45% | 3.30% |
Disclaimer: All interest rates are subject to change at regular intervals based on the discretion of the bank
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In an attempt to curb depreciation of Rupee, the government is set to introduce Foreign Currency Non-Repatriable Remittances Account (FCNR). FCNR are Fixed Deposit (FD) accounts which can be maintained in US Dollars, Pound Sterling, Canadian Dollar, Japanese Yen and Euro. The government aims to increase the foreign exchange reserves through FCNR Deposits. Other measures to cope with the depreciation include reducing the current account deficit by increasing tariffs on imports.
A source from the Finance Ministry added that the difference in interest rates between India and the US could fuel arbitrage. An arbitrage of this extent i.e. almost 8-9% could be financial taxing for India. The previous government regime had resorted to FCNR deposits to control the depreciation. In September 2013, deposits had been marked at 34 million dollars after the Rupee crashed to Rs.68.84.
8 October 2018
Indian Bank has recently revised the rates of interest paid on its Foreign Currency non-Repatriable (FCNR) term deposits with effect from July 2, 2018. These deposits can be held from a tenure that is from 1 year to 5 years by Non-Resident Indians (NRIs).
FCNR deposits can be held in various currencies such as Swedish Krone, Danish Krone, Swedish Franc, Japanese Yen, Canadian Dollar, Australian Dollar, EURO, US Dollar, Pound Sterling.
The new interest rate for US Dollar deposits has been revised and the highest rate paid on them are 3.93% for 5 years.
The interest rate paid on regular domestic fixed deposits range from 4.50% p.a. to 6.25% p.a. The highest rate that is paid by Indian Bank for this type of fixed deposit is 6.25% p.a. for tenures that are from 181 days to less than 1 year. And from more than 1 year to less than 3 year, the applicable rate is 6.50% p.a. All senior citizens are eligible to get a higher interest rate on domestic term deposits. However, when it comes to NRI deposits such as NRO, NRE and FCNR deposits, no additional interest rate will be paid to senior citizens.
4 July 2018
Indian bank has revised the interest rate for FCNR term deposits recently. The new interest rate is 2.33% in USD terms for deposits of 1 year to below 2 years. Earlier, the interest rate for this tenure was 2.26%. The interest rate for deposits of 2 years to below 3 years has been increased to 2.57% from 2.52%. There is no change in the interest rates for deposits of 3 years to 5 years.
The bank has also launched a new mobile application called ‘DigiLock’ and Direct Tax Payment service through debit card. Using the DigiLock mobile application, customers can store and lock their debit, credit, mobile banking and net banking services. The Direct Tax Payment service allows customers to pay their direct tax using their debit cards.
27 March 2017
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