FCNR (Foreign Currency Non-Resident) deposits allow NRIs to hold eligible foreign currencies with an Indian bank while earning interest that’s tax-free in India. While FCNR deposits have been available for many years, they’re currently attracting renewed attention because the Reserve Bank of India (RBI) has introduced a special FCNR(B) deposit mobilization program—the first initiative of its kind since 2013. During this limited-time window, many Indian banks are offering higher interest rates than usual. Always confirm the latest rates directly with your bank before investing.
This guide brings together FCNR interest rates from ten leading Indian banks in one place. Alongside current rates, you’ll find key account features and clear factors to weigh, so you can choose with confidence.
Last Updated: June 30, 2026
Note: Interest rates change frequently. Always verify the latest rates directly with the bank before investing.
Quick FCNR Interest Rates Comparison Table
The table below highlights FCNR rates pulled directly from leading bank websites for eligible NRIs current as of 6/28/2026. Many banks offer additional interest rates across different deposit terms—typically 1–2 years, 2–3 years, 3–4 years, and 4–5 years—which may vary by currency and deposit amount.
Always confirm the latest rates for your preferred term directly with your bank before investing.
| Bank | USD | GBP | EUR | AUD | CAD | Tenure |
| IDFC FIRST Bank | 6.75% | – | – | – | – | 5 Years |
| Federal Bank | 6.00% | 3.00% | 1.65% | 3.60% | 2.25% | 5 Years |
| ICICI Bank | 6.00% | 5.90% | – | 6.25% | 4.50% | 5 Years |
| HDFC Bank | 6.00% | 5.90% | 4.55% | 6.25% | 4.50% | 5 Years |
| State Bank of India (SBI) | 3.05% | 2.80% | 1.25% | 3.85% | 2.61% | 5 Years |
| Kotak Mahindra Bank | 6.00% | – | – | – | – | 5 Years |
| Yes Bank | 6.60% | 3.30% | 1.70% | 3.35% | 2.25% | 5 Years |
| Indian Bank | 3.40% | 2.70% | 1.50% | 2.45% | 3.00% | 5 Years |
| Bank of Baroda | 6.00% | 4.75% | 3.75% | 4.75% | 5.15% | 5 Years |
| Punjab National Bank (PNB) | 6.50% | 6.50% | 4.95% | 5.50% | 4.92% | 5 Years |
| IndusInd Bank | 6.75% | 4.25% | 0.01% | 0.01% | 0.01% | 5 Years |
*Advertised USD FCNR rate as of 6/28/2026. Rates vary by currency, deposit size, and term and may change during the RBI’s FCNR(B) deposit mobilization program.
Note: Promotional FCNR rates can change quickly. Contact your relationship manager or local branch to confirm the latest rates and eligibility before opening a deposit.
What Is an FCNR Deposit?
A Foreign Currency Non-Resident (FCNR) deposit is a fixed deposit offered by Indian banks that allows eligible NRIs to keep their savings in foreign currency instead of converting them into Indian Rupees.
Unlike an NRE fixed deposit, your money remains in the original foreign currency throughout the investment period. That means your returns aren’t affected by fluctuations in the Indian Rupee.
Key Features
- Available to Non-Resident Indians (NRIs) and eligible Persons of Indian Origin (PIOs)
- Offered in major currencies including USD, GBP, EUR, AUD, and CAD
- Some banks also offer SGD, JPY, CHF, NZD, and HKD
- Deposit terms generally range from 1 to 5 years
- Interest earned is generally tax-free in India (subject to applicable tax laws)
- Both principal and interest are fully repatriable
- May reduce Indian Rupee exchange rate risk
How to Compare FCNR Deposits
While interest rates are often an important factor, they’re only one factor to consider when choosing an FCNR deposit.
Interest Rate
Compare rates for your preferred currency and deposit term. The bank offering the highest USD rate may not offer the best rates for GBP, EUR, or AUD deposits.
Currency Availability
Not every bank supports every foreign currency. Before opening a deposit, make sure your preferred bank offers the currency you plan to invest.
Deposit Term
Many of today’s highest promotional rates apply to deposits with 3- to 5-year terms. Consider whether you’re comfortable leaving your funds invested for that length of time.
Premature Withdrawal Rules
FCNR deposits generally have a minimum one-year lock-in period. Premature withdrawal before one year is typically not permitted. After one year, early withdrawal may be allowed, usually subject to a reduced interest rate or other applicable bank charges. Since policies vary by bank, review the terms carefully before opening your deposit.
Banking Relationship
Customer service, dedicated NRI support, digital banking, and access to a relationship manager may also influence your decision—especially if you expect to maintain deposits over several years.
Which Bank Should You Choose?
The right FCNR deposit depends on your financial goals—not just the advertised interest rate.
If maximizing returns is your priority, compare the highest promotional USD rates currently available. If you value a broader range of supported currencies, a long-standing banking relationship, or international banking services, another bank may be a better fit.
Before making your decision, consider:
- Your preferred foreign currency
- Deposit term
- Current promotional interest rate
- Minimum deposit requirements
- Premature withdrawal rules
- Overall NRI banking services
Once you’ve narrowed your options, contact your relationship manager or local branch to confirm current rates, required documentation, and the account opening process.
Frequently Asked Questions (FAQs)
Which bank currently offers the highest FCNR interest rate?
Interest rates change frequently, especially during the RBI’s special FCNR(B) deposit mobilization program. Based on the latest available rates, IDFC FIRST Bank and IndusInd Bank offer some of the highest advertised USD FCNR rates at 6.75% for 5-year deposits, followed by Yes Bank (6.60%) and Punjab National Bank (6.50%).*
Several other banks—including ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Bank of Baroda—also offer 5-year USD rates of 6.00%. Since rates vary by currency, deposit amount, and tenure, always verify the latest rates directly with your chosen bank before investing.
*Based on publicly advertised FCNR deposit rates available from each bank as of 6/8/2026. Interest rates vary by currency, tenure, deposit amount, and may change without notice. Always verify the latest rates directly with the bank before investing.
Are FCNR deposits tax-free?
Interest earned on FCNR deposits is generally tax-free in India. However, your country of tax residence may tax this income, so consult a qualified tax advisor if you’re unsure how local tax rules apply.
Can FCNR deposits be withdrawn early?
Generally, premature withdrawal isn’t permitted until the deposit has completed one year. After that, banks may allow early withdrawal, typically with a reduced interest rate or other applicable penalties. Since policies differ, confirm your bank’s terms before investing.
Which currencies are available for FCNR deposits?
Most banks offer USD, GBP, EUR, AUD, and CAD. Some banks also offer additional currencies such as SGD, JPY, CHF, NZD, and HKD.
Looking Ahead: Leveraged FCNR Deposits
You may also hear about leveraged FCNR deposit structures, which have generated significant interest following the RBI’s recent announcement.
These structures combine an FCNR deposit with overseas borrowing to potentially increase returns. However, they also involve additional borrowing costs, leverage, and regulatory considerations that make them very different from a standard FCNR deposit.
Because of their complexity—and because regulatory guidance continues to evolve—we’ll cover leveraged FCNR deposits in a separate guide dedicated to how they work, their risks, and who they may be appropriate for.
Final Thoughts
The RBI’s special FCNR(B) deposit mobilization program has resulted in higher FCNR rates than have been commonly available in recent years.
If you’re considering opening an FCNR deposit, compare the current offerings from leading banks, review the terms carefully, and speak with your relationship manager or local branch to understand the latest rates, eligibility requirements, and available deposit terms.
If you’re transferring funds to India for other major financial goals—such as purchasing property, making mortgage payments, or supporting family—you can also use Remitly to transfer money internationally to India**. Whether you’re investing, buying a home, or managing expenses abroad, choosing a transfer method that meets your needs can help simplify the process. “Sending limits vary by country, delivery method, and FX rates. Banking partner requirements and additional documentation may apply.
Since promotional FCNR rates may change over time, confirming the latest details before investing can help you lock in the current advertised rate while the RBI’s special FCNR(B) window remains available.
This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant or otherwise guarantee that the content is accurate, complete or up to date.
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