As part of efforts to rescue the sinking rupee, the Reserve Bank of India freed interest rates on FCNR deposits. This allows banks to set their own interest rates on FCNR fixed deposits to compete with each other by offer high interest rates.
In order to help NRIs to compare and find the banks that offer high interest rates, we collected FCNR interest rates offered by popular banks in India and presented them in an easy to way to compare and make a decision.(Related: USD Exchange Rates, GBP Exchange Rates and GBP FCNR Rates)
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 |
2.43% |
2.59% |
2.71% |
2.81% |
2.91% |
Visit bank
|
|
Andhra Bank |
2.43% |
2.59% |
2.71% |
2.81% |
2.91% |
Visit bank
|
|
Bank Of Baroda |
2.18% |
2.34% |
2.71% |
2.81% |
2.91% |
Visit bank
|
|
Canara Bank |
0.28% |
0.37% |
0.49% |
0.63% |
0.77% |
Visit bank
|
|
Catholic Syrian Bank |
1.93% |
2.09% |
2.21% |
2.31% |
2.41% |
Visit bank
|
|
DBS Bank |
1.68% |
1.84% |
1.96% |
2.06% |
2.16% |
Visit bank
|
|
Dena Bank |
1.93% |
2.09% |
2.21% |
2.31% |
2.41% |
Visit bank
|
|
HDFC Bank |
1.84% |
0.60% |
0.61% |
0.50% |
0.41% |
Visit bank
|
|
IDBI Bank |
2.18% |
2.34% |
2.46% |
2.56% |
2.66% |
Visit bank
|
|
IndusInd Bank |
2.38% |
2.54% |
2.21% |
2.31% |
2.41% |
Visit bank
|
|
Karnataka Bank |
2.33% |
2.49% |
2.81% |
2.91% |
3.01% |
Visit bank
|
|
Karur Vysya Bank |
2.68% |
2.84% |
3.38% |
3.49% |
3.48% |
Visit bank
|
|
Kotak Mahindra Bank |
1.80% |
1.80% |
1.80% |
1.80% |
1.60% |
Visit bank
|
|
Oriental Bank of Commerce |
2.25% |
2.59% |
2.80% |
2.82% |
2.91% |
Visit bank
|
|
Punjab & Sind Bank |
2.43% |
2.59% |
2.71% |
2.81% |
2.91% |
Visit bank
|
|
Saraswat Co-Op. Bank |
2.68% |
2.84% |
2.96% |
3.06% |
3.16% |
Visit bank
|
|
State Bank of India |
|
2.48% |
2.59% |
2.71% |
2.81% |
Visit bank
|
|
Tamilnad Mercantile Bank |
2.68% |
2.84% |
3.21% |
3.51% |
3.61% |
Visit bank
|
|
UCO Bank |
1.60% |
1.75% |
1.80% |
1.87% |
1.96% |
Visit bank
|
What is an FCNR Account?
FCNR account stands for Foreign Currency Non Resident account and they are provided by banks operating in India. It allows nonresident Indians to open fixed deposits in India and earn high interest rates
Let’s say you are an Indian origin person who live in USA and like to invest money in fixed deposits. You may open fixed deposits in USA banks which give 0.5% of interest rate or invest the same money in an Indian bank FCNR account and earn around 5.77%.(as on Sep 25th 2013) Do you see the difference between the interest rates: 0.5% and 5.77%? That’s a difference in many folds.
USA banks FDs offer 0.5% of interest and FCNR FDs offer 5.77% of interest. Is this true?
Yes, it’s an unbelievable truth. As I write this article on Sep 25th 2013, most of the USA banks are offering 0.5% of interest rates at the maximum and FCNR rates are at 5.77%. Being an NRI gives you the edge of earning high interest rates!
Can I invest in Dollars/Pounds/etc or should I convert money to INR before investing?
The best part of FCNR is you don’t need to convert your dollars/pounds/etc to Indian rupees. Most of us are worried about foreign exchange rates and sliding rupee. Who would want to convert dollars to rupees and have sleepless nights thinking about sinking rupee!
FCNR deposits lets you invest in dollars/pounds/etc and on maturity get your money back in the same foreign currency.
What if rupee rate sinks? Will I lose on FCNR deposits and their interest?
No. FCNR deposits are always maintained in your foriegn currency (dollar, pound, etc) and on maturity you will get the money bank in the currency you invested.
What is the process of opening an FCNR account?
So you are impressed at the FCNR account returns and would like to take advantage of it. That’s good. You need your passport, Visa and foreign address proof documents (like electricity bill, phone bills, apartment rental agreement, etc) and foreign currency to deposit.
You may use the above comparison information to first select the bank where you want to open FCNR account. Then visit the bank website to find complete list of documents required for opening the account. Each bank has their own process and documents requirement. Better to check with the bank by contacting the customer care.
A disclaimer from us
This is a routine disclaimer you would have seen in other pages on this website. We are neither financial experts or associated with any banks to advice/promote FCNR accounts. We are a bunch of enthusiasts who have interest of gathering information and sharing it. Before using our information, do thorough research and take decisions on your own. We are not responsible for any situations that arise due to using this information.
In other words, don’t come behind us for any inconvenience :)
