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    Pros and Cons of FCNR deposit

    We found 111 Pros and Cons of FCNR deposit

    Institution Name
    Deposit Amount Range
    Tenure Range
    Interest Rate
    Up to ₹25L
    1 Year to 5 Years
    7.49% - 8.19% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹25L
    1 Year to 5 Years
    7.75% - 8.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 20 Years
    5% - 8.15% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.5% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4.25% - 7.35% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹1Cr
    15 Days to 20 Years
    4.25% - 6.9% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.5% - 7.10% Monthly compounding
    Response Time Within 30 minutes
    Features
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 10 Years
    6% - 6.4% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year onwards
    6.25% - 6.5% Monthly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    Up to ₹1Cr
    7 Days to 10 Years
    4% - 7.35% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
    NRI - FD
    Up to ₹1Cr
    1 Year to 5 Years
    6.85% Quarterly compounding
    Response Time Within 30 minutes
    Features
    Highlights
    Documents
    Good to Know
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  • Pros and Cons of FCNR deposit Reviews

    • SBI Fixed Deposit
      "Convenient to Hold"
      0.5 4.0/5 "Great!"
      It has been two years when I opened fixed deposit with State bank of India. The period is for five years. Since I completed two years, three years to go. Interest rate is of 11%. Actually SBI is located near to my house so I feel more comfortable in visiting the bank at any instance. All the staffs are very friendly and very cooperative.
      Was this review helpful? 1
      , visakhapatnam
      Reviewed on May 25, 2017
    • SBI Fixed Deposit
      "Secured investment"
      0.5 5.0/5 "Blown Away!"
      Compared to other banks SBI offering good interest rate on fixed deposit, they offered me 7.95% of interest. I have the amount of Rs. 2.4 lakhs for the tenure of three years. After the maturity period I got the amount around 2.9 lakhs. I am very much fine with that.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 24, 2017
    • Karur Vysya Bank Fixed Deposit
      "Good"
      0.5 3.5/5 "Pretty good"
      I am having the fixed deposit account with the Karur Vysya bank and the account got opened within one to two days of time. Tenure is for five years of time and after that it will be get matured. Rate of interest was around 8.5% to 9% on that time with the tax redemption.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 23, 2017
    • Karnataka Bank Fixed Deposit
      "Good Bank"
      0.5 5.0/5 "Blown Away!"
      I have an account for fixed deposit only with Karnataka bank. I have deposited around fifty five lakhs. I bank with Karnataka for more than twenty years, even my family members are having an account with the same bank. Their services are really good.
      Was this review helpful? 0
      , chennai
      Reviewed on May 22, 2017
    • ICICI Bank Fixed Deposit
      "Good one"
      0.5 3.5/5 "Pretty good"
      I have fixed deposit account with the ICICI bank and I got it from them because I had the salary account with them. Within two days of time fixed deposit account got opened and the maturity period is around one year of time. Interest rate is around 8% with them and am not that much happy with that. I would like to suggest that they can increase the rate of interest for the deposits.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 18, 2017
    • SBI Fixed Deposit
      "Too much of process involved"
      0.5 2.5/5 "Just OK"
      At other private bank a fixed deposit could be opened online and a customer does not have to visit the bank. In my case I had to visit State bank of India to open a fixed deposit and it has a lot of process involved. Like wise to close the same it is the same scenario.
      Was this review helpful? 3
      , pune
      Reviewed on May 10, 2017
    • SBI Fixed Deposit
      "Good "
      0.5 5.0/5 "Blown Away!"
      I am having fixed deposit account with the State bank of India and the interest rate is around 6.2% for the tenure of five years of time. I have opened this account through online, so it got happened very immediately. Charges are nil with them and I can get the money withdrawal in fraction of seconds.
      Was this review helpful? 4
      , pondicherry
      Reviewed on May 09, 2017
    • SBI Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      Long back I had Fixed deposit account with State bank of India. I selected the tenure period for six years. The bank had fixed a good rate of interest. At last I received the money with the promised interest amount. I am much satisfied with SBI for the FD service.
      Was this review helpful? 3
      , hyderabad
      Reviewed on May 09, 2017
    • Bank of Baroda Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I had Fixed Deposit account with Bank of Baroda about quite long back. The tenure period is six years and the fixed amount is four to five lakhs. The percentage of interest rate is quite good and they returned the money back with the promised interest amount.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 09, 2017
    • ICICI Bank Fixed Deposit
      "Average "
      0.5 2.0/5 "Expected more"
      I have withdrawn my fixed deposit account with the ICICI bank and the interest rate was around 7%. It took around one to two hours of time to open the account through online. There are no charges while withdrawing the amount , also it took around one month of time to get it.
      Was this review helpful? 1
      , pudukkottai
      Reviewed on May 08, 2017
    • IDBI Fixed Deposit
      "Very Responsive"
      0.5 4.0/5 "Great!"
      I deposited some amount with IDBI bank as a fixed deposit. Actually I deposited this amount for future savings also I will be getting some good interest rate at the end of the year. I got good support from the bank executives and they provided all the information regarding FD.
      Was this review helpful? 1
      , indore
      Reviewed on May 04, 2017
    • YES Bank Fixed Deposit
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      Yes bank have some banking issues with them I believe. I have savings account, recurring and fixed deposit account with them. I never received quick response from the bank. But the bank is good for my fixed deposit account. Simply I opened an account with them and getting better service on it.
      Was this review helpful? 1
      , indore
      Reviewed on May 04, 2017
    • Kotak Fixed Deposit
      "Good Service"
      0.5 3.0/5 "Satisfactory"
      I have savings account with Kotak Mahindra bank. Even I have fixed deposit account as well. The period of FD is for one year. The bank is assigned relationship manager for me as I have so many accounts with them. I got good response from them for my FD. 1 years, 1years, relationship manager
      Was this review helpful? 0
      , indore
      Reviewed on May 04, 2017
    • SBI Fixed Deposit
      "Satisfactory Service"
      0.5 5.0/5 "Blown Away!"
      Even I have fixed deposit with State bank of India. The tenure period is one year. I deposit certain amount with them as their interest rate is good and incomparable. SBI gives good response to the people and they are very supportive as well. I have no issues with SBI.
      Was this review helpful? 0
      , indore
      Reviewed on May 04, 2017
    • Punjab National Bank Fixed Deposit
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I had invested in fixed deposit with Punjab National Bank. I have deposited ceratin amount on my account. I got good response from the bank when I opened FD. The bank was so supportive and they provided all the information regarding FD. The interest rates too are pretty attractive.
      Was this review helpful? 0
      , indore
      Reviewed on May 04, 2017
    • SBI Fixed Deposit
      "Average "
      0.5 1.0/5 "Really Bad"
      I had invested in fixed deposit with the State bank of India and the interest rate is very less like its around 7.15%, also the returns are also very less, which will be also applicable with the tax. Services provided by them is really not good and I would like to suggest that they need to provide the customer service in a much better way.
      Was this review helpful? 2
      , bhopal
      Reviewed on May 03, 2017
    • SBI Fixed Deposit
      "Fantastic"
      0.5 5.0/5 "Blown Away!"
      In terms of interest rate and everything State Bank of India is fine to have the fixed deposit and the service aspects are working fine with them. I am having this account from the last six to seven years of time and the response is always very good with the State Bank of India.
      Was this review helpful? 2
      , mundra
      Reviewed on May 03, 2017
    • HDFC Bank Fixed Deposit
      "Excellent to Excellent"
      0.5 5.0/5 "Blown Away!"
      I do have the fixed deposit account with the HDFC bank and the interest rate is differed according to the offers. All of my deposits will be taken care by my relationship manager. Total tenure is around five years of time and its a kind of small deposits. Net banking services are an excellent one with them.
      Was this review helpful? 2
      , bangalore
      Reviewed on Apr 26, 2017
    • Punjab National Bank Fixed Deposit
      "Customer service should be good and unique for everyone"
      0.5 4.0/5 "Great!"
      I do have fixed deposit account with the Fixed deposit and they have provided around 8.5% as interest rate. Services are perfect one for me and I do have good relationship with them because my relatives are working there. Net banking services are also working good and they are started to exhibit most of the services there.
      Was this review helpful? 1
      , ghaziabad
      Reviewed on Apr 26, 2017
    • Axis Bank Fixed Deposit
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I had invested in fixed deposit account with the Axis bank and the minimum tenure is around five years of time. Response is a good one with them and everything was done through online. Net banking services are working in an excellent way and it is really wonderful.
      Was this review helpful? 1
      , kolkata
      Reviewed on Apr 25, 2017
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    Pros and Cons of FCNR deposit is Rated as "Excellent!" by 1739 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Fixed Deposit BYTES FROM OUR KITCHEN

    Foreign Currency Non Resident (FCNR) Fixed Deposit Account

    Non Resident Indian (NRIs) who would like to open an account in India have several options to choose from such as NRE Fixed Deposit Account, Non-Resident Ordinary (NRO) Savings Account and Foreign Currency Non Resident (FCNR) Fixed Deposit Account among others.

    There are several factors which NRIs should consider before choosing to open an account in India such as the following:

    Factors galore

    • Family factor:

      Can a relative or family member of the NRI in India operate the account with a mandate card provided by the bank?

    • Source factor:

      Should the funds in the account be deposited from sources in abroad only or from India as well?

    • Currency factor:

      What are the currencies in which the account can be opened and the associated risk of currency rates?

    • Tax factor:

      Will the principal and the interest in the account come under the purview of tax laws in the country.

    • Repatriability factor:

      Can the funds be converted back to the foreign currency?

      According to experts, FCNR play a significant role in terms of attracting remittances from NRIs. It is, in some ways, a unique financial instrument in that unlike NRE and NRO accounts, FCNR accounts can be opened as term deposit accounts only. FCNR accounts can be opened from overseas by submitting copies of passport and visa of the account proposer in addition to bank accounts held overseas, proof of foreign residence and income documents among others.

      Interest rates offered for FCNR accounts may vary depending upon the type of currency and the bank. For instance, FCNR deposit (one year) in USD may be around 2.5 to 3% but could be pegged at 5% for the Australian dollar.

    Foreign Currency Non Resident (FCNR) Fixed Deposit Account

    Some of the advantages of the Foreign Currency Non Resident (FCNR) Fixed Deposit Account are as follows:

    • FCNR accounts are protected against forex rate risks (changes in the value of rupee vis-à-vis the currency in which the account is denominated) as they are maintained in a foreign currency. In other words, the principal and the interest are transferred in the currency in which the account is maintained sans any loss of exchange.
    • Interest earned on FCNR deposits in India is exempt from Income tax.
    • FCNR accounts can have two or more NRIs joint account holders. However, joint account with another person resident in India is not permitted.
    • FCNR accounts are denominated in several major currencies such as Pound Sterling, US Dollar, Yen and Euro.
    • In FCNR accounts, both principal and interest are freely repatriable. In other words, the interest earned and the deposit amount on the deposits are repatriable to the depositor’s country of residence sans restrictions.
    • FCNR accounts are offered for not less than 1 year and not more than 3 years.
    • All authorized banks which offer FCNR accounts set the interest rates within the ceiling as announced by the Reserve Bank of India. Interest rates on FCNR term deposit accounts should, therefore, be set by the board of directors of a particular bank, under the broad mandate of RBI regulations.
    • Interest rates on FCNR term deposits are payable after the end of first year. Interest is compounded on a half-yearly basis subsequently.
    • Rupee loans against funds held in the FCNR accounts can be provided to account holder for any investment in India. Foreign currency loans outside India permitted to the account holder, can be repaid from the maturity proceeds. Some banks may also provide loans to firms or companies against the collateral of FCNR accounts.

    FCNR and Current Account Deficit

    RBI, in a bid to attract more foreign exchange into the country, may announce a ‘bonanza’, as it were, for NRIs by offering high interest rates on FCNR deposits. According to experts, increased inward remittances from NRIs, lead to more forex reserves, which in turn, reduce the current account deficit (CAD) of the country. The current account deficit is one of the main reasons of depreciation of the rupee. According to experts, any tapering of quantitative easing (QE) by the US Federal Reserve Bank, raises fears of less capital investment in India by foreign institutional investors (FIIs).

    Attracting NRI deposits through FCNR deposits

    While raising interest rates under the FCNR deposit scheme may prove beneficial for NRIs, RBI have certain protective measures for banks in India such as facility of swapping the US dollar funds at a fixed rate (usually 3.50%). The swap facility and the high interest rates offered on FCNR deposits can cease with prior notice since they reportedly expose the RBI to incur losses running to thousands of crores. The RBI, therefore, may discontinue the said facility and reduce interest rates if it attracts the desired forex reserves into the country.

    Some of the disadvantages of the Foreign Currency Non Resident (FCNR) Fixed Deposit Account are as follows:

    • If FCNR deposits are held with a weak bank, it may be unable to pay back upon maturity. Credit guarantee in India covers accounts in India to around Rs. 100,000 or 1600 USD, which is considered low. Many experts, therefore, believe that deposit insurance is almost non-existent in India, which could be a concern for FCNR deposit account holders.
    • In the event of a financial meltdown, banks may not be able to repatriate funds. The Greek crisis is a case in point. In some cases, Greek citizens, were reportedly, restricted from withdrawing over 40 euros from their accounts.
    • If FCNR deposit is withdrawn in less than one year, no interest is payable.
    • Foreign currency loans in India against FCNR accounts can be taken by account holders only.
    • FCNR deposits are offered for term deposits only and not for current, savings and recurring accounts.
    • FCNR account can be transferred to other NRE accounts before maturity. However, penalties will apply for premature withdrawals. Also, swapping charges are fixed by the bank in which the FNCR account is held.
    • FCNR accounts can be renewed within 14 days after maturity, failing which, the bank will fix interest rate on renewal. If renewed accounts are withdrawn before a fixed period, banks can take back the interest paid.
    • While the interest earned on FCNR deposits is tax-free, it may be taxable in the country of residence of NRIs. Also, Non Resident Indians, should consult tax experts to understand the implications of investing in India.
    • While RBI, under the Foreign Exchange Management Act, formulates rules of investment for NRIs in India, the Government of India, under the Indian Income Tax Act frames the tax rules, which are subject to change.

    News About Pros and Cons of FCNR deposit

    • Foreign Exchange Markets could be Shaky Due to FCNR Maturity

      With close to $25- $27 billion in FCNR deposits set to mature by November 2016, market analysts are anticipating a volatile Rupee by the end of the year. The Foreign Currency Non-Resident (FCNR) deposits, which are a type of fixed deposit offered to non-Resident Indians, account for around 1% of all deposits in India.

      The outflow of such a large amount of cash would negatively affect the performance of the Rupee, especially if exports continue to decline.

      Exports have seen a decline since December 2014, with exports in April 2016 $20 billion lower compared to the previous year.

      When the FCNR deposits expire, it would lead to Dollar outflow from the country, which might require the RBI to intervene to keep markets stable.

      Measures the RBI could take at such a time include accumulating Dollar reserves up till November, and allow the Dollar reserves to dip during this period by flooding the market with the currency. Another option could be issuing Sovereign Dollar bonds through government entities or a lowering of the CRR ratio during the deposit maturity period.

      20th june 2016

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