You need to meet the following criteria for opening an FCNR account: In case of premature withdrawal, interest is generally paid on deposits withdrawn after completion of one year.Usually banks have a lock-in period of one year.FCNR rates are subject to periodic changes.Different foreign currencies carry different FCNR rates.FCNR deposit rates by leading Indian banks, including SBI FCNR rates, ICICI FCNR rates, HDFC FCNR rates, etc. Foreign currency loans outside India are also permitted to the account holders.Īfter the Reserve Bank of India removed the ceiling on interest rates on incremental FCNR and NRE deposits, banks have raised FCNR deposit rates up to 4.52%. FCNR account holders can avail rupee loans against funds held in the FCNR account.You can open an FCNR fixed deposit account for a period between 1 year and 5 years.

Hence, NRIs can transfer the principal amount and interest earned to a bank account in their country of residence. In the case of an FCNR account, both principal and interest are fully and freely repatriable.NRIs can open an FCNR FD account in several major world currencies including, US Dollar, Pound Sterling, Euro, CAD, AUD, Yen, etc.Interest earned on FCNR fixed deposits are tax free in India.Indian banks have hiked FCNR rates significantly after the RBI removed the ceiling on interest rates.In other words, the principal and the interest earned thereon are transferred in the currency in which the account is maintained without any loss of exchange. Since your money is held in foreign denomination, FCNR accounts are protected against forex rate risks (change in the value of rupee against the currency in which the account is denominated).Some of the key benefits of FCNR fixed deposit accounts are as follows: FCNR Account: Top 6 Banks for FCNR Deposits Benefits of FCNR account With higher interest rates, NRIs can earn good returns on FCNR accounts. Mostly Indian banks book FCNR(B) deposits in the following currencies.įCNR deposits are a great investment option for NRIs who wish to retain their savings in foreign currency. FCNR deposits are one of the best NRI investments in India. The principal and interest earned thereon are maintained in one of the acceptable foreign currencies. In other words, NRIs can transfer their foreign earnings to a fixed deposit account in India without converting the currency into INR. How to deposit money in your FCNR accountĪn FCNR account is a foreign currency denominated fixed deposit account opened by non-resident Indians and overseas citizens of India (OCIs) to manage their savings in a foreign currency.

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