Compare FCNR Interest rates - British Pound deposits

FCNR fixed deposits are one the safe and high returns yielding investments for NRIs living in United Kingdom. Returns of FCNR fixed deposits are way higher than the fixed deposit investment options provided by local banks of United Kingdom. As on June 21st 2014, Fixed Term Deposit accounts offered by top banks of United Kingdom are giving returns close to 1.8% whereas an FCNR Fixed deposit returns are at 4.99%! So FCNR offers 2.7x more returns compared to local bank deposits.

FCNR fixed deposits are an unique opportunity for NRIs provided by Indian banks to attract more investments. This investment medium provides a win-win opportunity for the investors as well as the banks. Investors get high returns and banks get foreign investments, which are key for expanding their international business.

One of the other major benefits of FCNR fixed deposits is it enables investors to invest in India without converting their money to Indian Rupees. You can invest your earning in UK Pounds and get the returns in UK Pounds. This gives a major relief to investors from exchange rate fluctuations.

In order to help the NRIs living in United Kingdom to find the best FCNR fixed deposit account, we curated this information on interest rates offered by major Indian banks in an easy to understand manner. You can quickly glance at this page and find out which Indian bank offers highest interest rate. Hope you like our work.

The interest rates were last updated on July 12th 2017

Bank 1 Year 2 Years 3 Years 4 Years 5 Years Bank Website
ICICI Bank 1.21% 1.44% 1.54% 1.64% 1.73% Visit bank
Andhra Bank 1.46% 1.69% 1.79% 1.89% 1.98% Visit bank
Bank Of Baroda 0.71% 1.19% 1.29% 1.39% 1.48% Visit bank
Canara Bank 1.78% 1.90% 2.03% 2.13% 2.22% Visit bank
Catholic Syrian Bank 0.96% 1.19% 1.29% 1.39% 1.48% Visit bank
DBS Bank 0.71% 0.94% 1.04% 1.14% 1.23% Visit bank
Dena Bank 0.60% 1.02% 1.08% 1.16% 1.24% Visit bank
HDFC Bank 2.30% 1.10% 1.17% 1.12% 1.09% Visit bank
IDBI Bank 1.08% 1.23% 1.35% 1.44% 1.55% Visit bank
IndusInd Bank 0.51% 0.74% 0.84% 0.94% 1.03% Visit bank
Karnataka Bank 1.36% 1.59% 1.89% 1.99% 2.08% Visit bank
Karur Vysya Bank 1.46% 1.69% 1.54% 1.64% 1.73% Visit bank
Kotak Mahindra Bank 0.71% 0.66% 0.50% Visit bank
Oriental Bank of Commerce 1.40% 1.60% 1.50% 1.50% 1.50% Visit bank
Punjab & Sind Bank 1.46% 1.69% 1.79% 1.89% 1.98% Visit bank
State Bank of India 2.56% 2.71% 2.88% 3.04% Visit bank
Tamilnad Mercantile Bank 1.71% 1.94% 2.29% 2.59% 2.68% Visit bank
UCO Bank 0.63% 0.85% 0.88% 0.95% 1.03% Visit bank
 

Frequently asked questions about FCNR fixed deposits

Why Indian banks offer high interest rates compared to local bank of United Kingdom?

Indian banks are in need of British Pounds pretty badly! They need foreign investments to expand their business and to transact with other foreign banks. For them it makes more business sense to pay around 5% interest on an FCNR fixed deposits than to buy pounds from international market.

What is the minimum amount required to open an FCNR fixed deposit account?

1000 GBP is the minimum amount required for opening an FCNR fixed deposit. Plus some additional fees associated with documentation for account opening.

What is the minimum and maximum tenure of FCNR fixed deposits?

The minimum tenure of investment is 1 year and the maximum is 5 years. Investing on a long tenure gives you better returns.

After maturity how can I get invested money & interest earned to my UK bank account?

You can repatriate funds(get the money back to UK bank account) in two ways - request the bank for either a demand draft or a wire transfer. These are the most common means provided by the banks to return your earnings, but few banks do offer other means. Reach out the bank’s customer care for more details.

Can I close my FCNR fixed deposit prematurely?

Most of the banks allow closing FCNR fixed deposits prematurely without any penalty. I mean extra penalty. If you close your account prematurely you will take a hit on the interest earned. Depending on when you close the account you may either get partial interest paid or no interest.

Is the interest earned on FCNR fixed deposit taxed in India?

No. The interest earned on FNCR fixed deposits is not taxed in India. But it may be taxed in United Kingdom as it is considered as your income in UK Pounds. Check with your tax consultant for more details.

Is the comparison information provided in the above table 100% accurate?

We work hard to curate this information on regular basis and try to get it as accurate as possible. As we gather this information manually there is a chance of errors, so use our information as a reference and validate it with by verifying it on bank’s website or speaking to the customer. Also banks change this information quite often and we may not be able to catch up with their speed. So please do your home work before you invest money. Use this information at your risk.