FCNR Deposit Rates 2026: ICICI, HDFC & Other Banks Compared
TL;DR - Summary
- What are FCNR deposit rates? - FCNR deposit rates are interest rates offered by Indian banks to NRIs on foreign currency fixed deposits. The rates are fixed at the time of booking and remain unchanged throughout the deposit tenure.
- What are the key benefits of FCNR deposits? - Tax-free interest in India, full repatriation of principal and interest, protection against currency fluctuations, overdraft facility, and nomination benefits.
- Which currencies can be used for FCNR deposits? - NRIs can open FCNR deposits in currencies including USD, GBP, EUR, CAD, AUD, JPY, and SGD, depending on the bank's offerings.
- How are FCNR deposit rates calculated? - Interest is calculated on a 360-day year and usually compounded every 180 days for deposits above one year. The rate depends on the currency, deposit period, bank, and global market rates.
What are FCNR Deposit Rates?
FCNR deposit rates are offered by Indian banks to Non-Resident Indians (NRIs), on depositing their international earnings in a fixed deposit account in India. The rates are quoted per annum and fixed at the time of booking. These deposits provide a safe and practical way to grow overseas income while enjoying tax benefits. They are accessible in key currencies including USD, GBP, EUR, CAD, AUD, JPY and others.
According to the current Reserve Bank of India (RBI) regulations, FCNR deposits can be opened for a minimum tenure of 1 year and a maximum tenure of 5 years. Banks are not allowed to accept or renew FCNR deposits for a period exceeding 5 years.
💡 QUICK INSIGHT
The FCNR interest rate is fixed at the time of booking and will not change during the tenure, even if market rates move.
What are the Key Features and Benefits of FCNR Deposits?
Tax-free interest earnings, complete repatriability of principal and interest and protection against changes in currency exchange rates are some of the benefits of FCNR fixed deposits in India. Here is a detailed list of features and benefits of FCNR deposits in India:
- You can keep your deposit in any of the following foreign currencies: Pound Sterling, US Dollars, Australian Dollars, Canadian Dollars, Japanese Yen, Euros or Singapore Dollars.
- The interest earned on an FCNR account is exempt from taxation in India.
- You can repatriate the principal amount and the interest in full.
- You can avail an overdraft facility against your FCNR deposit. It allows you to access funds when needed without prematurely withdrawing your investment.
- Nomination facility is available, allowing you to designate a beneficiary who can claim the deposit in the event of your demise.
- An FCNR account can be held jointly with another NRI, PIO, or OCI. It can also be held jointly with a resident Indian relative, but only on a "former or survivor" basis, where the NRI is the primary holder and the resident relative can operate it only as the survivor.
- Each bank has a different minimum deposit amount for different currencies. For instance, HDFC Bank has set a minimum initial deposit amount of $1,000 for USD.
What are the Current FCNR Interest Rates Across Major Banks in India?
You can make an FCNR deposit rate comparison to choose the right bank for your deposits. Here are the current FCNR deposit rates of major banks for different currencies, including USD, GBP, EUR, CAD, AUD, JPY, and SGD:
SBI FCNR Deposit Rates
| Period of Deposit | USD | GBP | EUR | CAD | AUD | JPY |
|---|---|---|---|---|---|---|
| 1 year | 4.40% | 4% | 2.75% | 2.97% | 3.75% | 0.40% |
| 1 to 2 years | 4.40% | 4% | 2.75% | 2.97% | 3.75% | 0.40% |
| 2 to 3 years | 3.55% | 3.95% | 1.25% | 2.72% | 3.65% | 0.40% |
| 3 to 4 years | 3.35% | 3% | 1.25% | 2.47% | 3.55% | 0.40% |
| 4 to 5 years | 2.95% | 2.90% | 1.25% | 2.52% | 3.45% | 0.30% |
| 5 years | 3.05% | 2.80% | 1.25% | 2.57% | 3.35% | 0.30% |
HDFC Bank FCNR Deposit Rates
| Period of Deposit | USD | GBP | EUR | CAD | AUD | JPY | SGD |
|---|---|---|---|---|---|---|---|
| 1 to 2 years | 3.65% | 4.15% | 2.40% | 2.55% | 4.50% | 0.70% | 1.10% |
| 2 to 3 years | 3.15% | NA | NA | 2.15% | 4% | NA | NA |
| 3 to 4 years | 3.15% | NA | NA | 2.20% | 4% | NA | NA |
| 4 to 5 years | 2.95% | NA | NA | 2.20% | 3.95% | NA | NA |
| 5 years | 2.75% | NA | NA | 2% | 3.75% | NA | NA |
ICICI Bank FCNR Deposit Rates
| Period of Deposit | USD | GBP | CAD | SGD | AUD |
|---|---|---|---|---|---|
| 1 to 2 years | 3.85% up to $1,000,000 4.00% from $1,000,000 to $2,500,000 3.85% above $2,500,000 | 4.10% | 2.35% | 1.25% | 4.35% |
| 2 to 3 years | 3.35% | 3.85% | 2.45% | 1.20% | 4.20% |
| 3 to 4 years | 3.00% | NA | NA | NA | NA |
| 4 to 5 years | 2.90% | NA | NA | NA | NA |
| 5 years | 2.90% | NA | NA | NA | NA |
Axis Bank FCNR Deposit Rates
| Period of Deposit | USD | GBP | CAD | EUR | AUD | JPY |
|---|---|---|---|---|---|---|
| 1 to 2 years | 4% | 4.10% | 2.30% | 1.65% | 3.75% | 0.01% |
| 2 to 3 years | 3.50% | 3.65% | 2.20% | 0.01% | 3.60% | 0.01% |
| 3 to 4 years | 3.25% | 0.01% | 2.10% | 0.01% | 3.15% | 0.01% |
| 4 to 5 years | 2.95% | 0.01% | 1.95% | 0.01% | 3.15% | 0.01% |
| 5 years | 2.95% | 0.01% | 1.75% | 0.01% | 2.95% | 0.01% |
Kotak Mahindra Bank FCNR Deposit Rates
| Period of Deposit | USD | GBP | SGD | EUR | AUD |
|---|---|---|---|---|---|
| 1 to 2 years | 4.40% | 4.10% | 1.35% | 2.75% | 4.35% |
| 2 to 3 years | 3.70% | 3.95% | 1.20% | 1.25% | 4.05% |
| 3 to 4 years | 3.40% | 3% | NA | 1.25% | 3.70% |
| 4 to 5 years | 3.20% | NA | NA | NA | NA |
| 5 years | 3% | NA | NA | NA | NA |
Bank of Baroda FCNR Deposit Rates
| Period of Deposit | USD | GBP | CAD | EUR | AUD |
|---|---|---|---|---|---|
| 1 to 2 years | 5% | 4.25% | 3.25% | 2.75% | 3.75% |
| 2 to 3 years | 3.55% | 2.35% | 3% | 1.50% | 3% |
| 3 to 4 years | 3.35% | 2.45% | 2.75% | 1.50% | 2.75% |
| 4 to 5 years | 2.95% | 2.45% | 2.80% | 1.50% | 2.80% |
| 5 years | 3.05% | 2.45% | 2.85% | 1.50% | 2.85% |
IndusInd Bank FCNR Deposit Rates
| Period of Deposit | USD | GBP | CAD | EUR | JPY | AUD |
|---|---|---|---|---|---|---|
| 1 to 2 years | 4.50% up to $1,000,000 4.60% for $1,000,000 and above | 4.40% | 2.65% | 2.60% | 0.01% | 4.80% |
| 2 to 3 years | 3.90% | 4.40% | 0.01% | 0.01% | 0.01% | 0.01% |
| 3 to 4 years | 3.70% | 4.30% | 0.01% | 0.01% | 0.01% | 0.01% |
| 4 to 5 years | 3.60% | 4.25% | 0.01% | 0.01% | 0.01% | 0.01% |
| 5 years | 3.60% | 4.25% | 0.01% | 0.01% | 0.01% | 0.01% |
Federal Bank FCNR Deposit Rates
| Period of Deposit | USD | GBP | EUR | CAD | JPY | AUD | SGD |
|---|---|---|---|---|---|---|---|
| 1 to 2 years | 4% up to $500,000 | 4% up to £500,000 | 2.50% up to €500,000 | 2.75% | 0.20% | 4.40% | 0.42% |
| 2 to 3 years | 3.90% up to $500,000 | 4.20% up to £500,000 | 2.25% up to €500,000 | 3% | 0.20% | 4.20% | 0.84% |
| 3 to 4 years | 3.50% up to $500,000 | 4% up to £500,000 | 2% up to €500,000 | 2.50% | 0.20% | 4% | 0.78% |
| 4 to 5 years | 3.25% up to $500,000 | 3.50% up to £500,000 | 1.75% up to €500,000 | 2.50% | 0.10% | 3.60% | 0.78% |
| 5 years | 2.90% up to $500,000 | 3% up to £500,000 | 1.65% up to €500,000 | 2.25% | 0.10% | 3.60% | 0.80% |
IDFC First Bank FCNR Deposit Rates
| Period of Deposit | USD (up to $100,000) | GBP | CAD | SGD | JPY | AUD |
|---|---|---|---|---|---|---|
| 1 to 2 years | 4.55% | 4% | 2.90% | 2.10% | 0.40% | 3.55% |
| 2 to 3 years | 3.70% | 3.15% | 2.30% | 1.60% | NA | 2.55% |
| 3 to 4 years | 3.25% | 2.55% | 1.90% | 1% | NA | 2.05% |
| 4 to 5 years | 3.15% | 2.50% | 1.75% | 0.45% | NA | 1.95% |
| 5 years | 3.15% | 2.50% | 1.75% | 0.45% | NA | 1.80% |
Which Bank Offers the Highest FCNR Deposit Rates in India?
Currently, Bank of Baroda is offering the highest FCNR deposit interest rate of 5% on USD deposits for a tenure of 1 to 2 years in comparison to other major Indian banks. IndusInd Bank and IDFC FIRST Bank also provide competitive FCNR deposit rates for select currencies and tenures.
How are FCNR Deposit Rates Calculated?
FCNR deposit interest is worked out on a 360-day year rather than the usual 365. This is just the day-count convention banks use for these foreign-currency deposits: each year is treated as 360 days (twelve 30-day months) when calculating how much interest you have earned. It is an international money-market standard, not something that reduces your return in any meaningful way.
The interest is compounded every 180 days, that is, twice a year. Compounding means that at the end of each 180-day period, the interest you have earned is added to your principal, and the next period's interest is then calculated on this larger amount. So your interest earns interest, and the deposit grows a little faster than it would with simple interest. (For deposits of one year or less, interest is simple and not compounded; compounding applies to longer tenures.)
Beyond the day-count method, the rate itself is set by the bank based on its own pricing rules, the tenure, the deposit currency, and global benchmark rates.
The interest rate cannot be changed in the middle of the term. It is fixed at the time of booking, so your funds are protected from market movement.
FCNR(B) deposit rates are subject to strict ceilings set by the RBI, and Indian banks are not allowed to offer rates above these limits. The ceilings are tied to international benchmark rates (the Overnight Alternative Reference Rate, such as SOFR for US dollars), plus a small margin.
How to Choose the Best FCNR Deposit Rate?
To choose the best FCNR deposit rate, pick the currency that matches your income source, select a tenure that fits when you will need the money, and compare the spread each bank offers above the international benchmark rate. The factors below explain each of these in turn.
Currency That Aligns with Your Income Source
You may save money in any currency, but be sure it fits your financial objectives. Additionally, see if the interest rates are reasonable for the currency of your choosing.
Tenure Aligns with Your Repatriation Plans
The best FCNR tenure will depend on when you might need access to your funds. If you are going to repatriate money overseas in 1-2 years, you may want a shorter tenure for more flexibility.
Compare the Interest Rate Spread
FCNR deposit rates are usually influenced by international benchmark rates such as the USD's SOFR or the GBP's SONIA. Before you invest, check the extra return the bank is offering above current benchmark rates.
⚠️ WATCH OUT
Premature withdrawal will apply for 1% below the applicable rate. Consider this before depositing your money.
Are FCNR deposit interest earnings tax-free for NRIs?
Yes, FCNR deposit interest earnings are tax-free for NRIs.
Why do FCNR deposit rates vary between banks?
How do FCNR interest rates compare across currencies?
How do FCNR rates vary by tenure?
How does the RBI cap FCNR interest rates?
How do FCNR rates compare with NRE fixed deposit rates?
What happens to FCNR interest if you withdraw prematurely?
Can FCNR deposit interest rates change after I lock in my tenure?
Which currencies are accepted for FCNR deposits in India?
