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An FCNR deposit (Foreign Currency Non-Resident Bank deposit) is a fixed deposit that lets NRIs keep their savings with an Indian bank in a foreign currency instead of rupees. For example, if you deposit US dollars, you earn interest in dollars and get your money back in dollars. This means your deposit is not affected by changes in the rupee-dollar exchange rate.
For most of the past decade, FCNR deposits offered interest rates of around 2% to 4%. That changed in June 2026, when the Reserve Bank of India (RBI) introduced a special swap facility for banks accepting new FCNR deposits for three to five years. You can know more about it by clicking here.
As a result, special FCNR deposit rates have moved up sharply, with some banks now offering rates between 5.5% and 7.4%.
For NRIs with savings in foreign currency, FCNR deposits can be attractive because they offer three important benefits: a fixed return, no direct exposure to rupee movements, and tax-free interest in India. The money can also be fully repatriated, subject to applicable rules.
However, this special facility is temporary. New deposits can be booked under the scheme only until 31 August 2026. Also not all banks are offering the same FCNR deposit rates.
In this article, we show you the latest rates offered by different banks, why rates vary, who can open an FCNR deposit, and what you should check before investing.
Current special FCNR deposit rates on USD across major Indian banks
Rates below apply to USD deposits in the three-to-five-year band. Banks are listed by size and category. Where a bank varies its rate by deposit size, both tiers are shown; where it does not, a single rate applies across all deposit sizes.
State Bank of India FCNR deposit rates on USD
| Tenor | Up to USD 1 mio | Above USD 1 mio |
| 3 yr to < 4 yr | 5.25% | 5.50% |
| 4 yr to < 5 yr | 5.50% | 5.75% |
| 5 years | 5.75% | 6.00% |
Bank of Baroda FCNR deposit rates on USD
| Tenor | < USD 0.2 mio | 0.2–1 mio | 1–5 mio | > 5 mio |
| 3 yr to < 4 yr | 6.25% | 6.25% | 6.25% | 6.25% |
| 4 yr to < 5 yr | 6.50% | 6.50% | 6.50% | 6.50% |
| 5 years | 6.50% | 6.50% | 6.50% | 6.50% |
Indian Bank FCNR deposit rates on USD
| Tenor | Up to USD 1 mio | Above 1 mio to 3 mio | Above 3 mio |
| 3 yr to < 4 yr | 6.00% | 5.60% | 5.50% |
| 4 yr to < 5 yr | 6.25% | 5.85% | 5.75% |
| 5 years | 6.50% | 6.10% | 6.00% |
HDFC Bank FCNR deposit rates on USD
| Tenor | All deposit sizes |
| 3 yr to < 4 yr | 6.25% |
| 4 yr to < 5 yr | 6.25% |
| 5 years | 6.25% |
ICICI Bank FCNR deposit rates on USD
| Tenor | All deposit sizes |
| 36 to < 48 months | 6.25% |
| 48 to < 60 months | 6.25% |
| 60 months | 6.25% |
Axis Bank FCNR deposit rates on USD
| Tenor | Below USD 1 mio | USD 1 mio and above |
| 3 yr to < 4 yr | 6.25% | 6.40% |
| 4 yr to < 5 yr | 6.25% | 6.40% |
| 5 years | 6.25% | 6.40% |
Kotak Mahindra Bank FCNR deposit rates on USD
| Tenor | < USD 0.5 mio | USD 0.5 mio and above |
| 3 yr to < 4 yr | 6.25% | 6.25% |
| 4 yr to < 5 yr | 6.25% | 6.25% |
| 5 years | 6.30% | 6.30% |
IDFC FIRST Bank FCNR deposit rates on USD
| Tenor | Up to USD 1 mio | Above USD 1 mio |
| 3 yr to < 4 yr | 6.75% | 6.75% |
| 4 yr to < 5 yr | 6.75% | 6.75% |
| 5 years | 6.75% | 6.75% |
Federal Bank FCNR deposit rates on USD
| Tenor | USD 500k to < 3 mio | USD 3 mio and above |
| 3 yr to < 4 yr | 6.40% | 6.25% |
| 4 yr to < 5 yr | 6.40% | 6.40% |
| 5 years | 6.40% | 6.40% |
HSBC India FCNR deposit rates on USD
| Tenor | All deposit sizes |
| 3 years | 5.50% |
| 5 years | 5.50% |
Simple interest only at these tenures; no cumulative option quoted.
AU Small Finance Bank FCNR deposit rates on USD
| Tenor | < USD 500,000 | USD 500,000 and above |
| 3 yr to < 4 yr | 7.40% | 7.40% |
| 4 yr to < 5 yr | 7.10% | 7.10% |
| 5 years | 7.10% | 7.10% |
Special FCNR deposit rates for GBP, EUR, AUD, CAD, SBD, JPY and other currencies
Rates for the three-to-five-year band, as of 17 August 2026. Only five of the banks reviewed publish non-USD rates in this band.
| Bank | Tenor | GBP | EUR | AUD | CAD | SGD | JPY | Card dated |
| Bank of Baroda | 3–4 yr | 5.50% | 3.50% | 4.60% | 5.00% | — | — | 13 Jul 2026 |
| 4–5 yr | 5.75% | 3.65% | 4.65% | 5.10% | — | — | ||
| 5 yr | 6.00% | 3.75% | 4.75% | 5.15% | — | — | ||
| Axis Bank | 3–4 yr | 5.90% | 4.50% | 6.25% | 4.50% | — | 0.01% | 17 Aug 2026 |
| 4–5 yr | 5.90% | 4.55% | 6.25% | 4.50% | — | 0.01% | ||
| 5 yr | 5.90% | 4.55% | 6.25% | 4.50% | — | 0.01% | ||
| Kotak Mahindra Bank | 3–4 yr | 3.45% | 1.90% | 3.85% | — | no quote | — | 11 Aug 2026 |
| 4–5 yr | no quote | no quote | no quote | — | no quote | — | ||
| 5 yr | no quote | no quote | no quote | — | no quote | — | ||
| Federal Bank | 3–4 yr | 6.15% | 4.60% | — | — | — | — | 17 Aug 2026 |
| 4–5 yr | 6.15% | 4.60% | — | — | — | — | ||
| 5 yr | 6.15% | 4.60% | — | — | — | — | ||
| AU Small Finance Bank | 3–4 yr | 4.25% | 2.00% | — | 3.00% | — | — | 27 Jul 2026 |
| 4–5 yr | 3.50% | 2.00% | — | 3.00% | — | — | ||
| 5 yr | 3.40% | 2.00% | — | 3.00% | — | — |
Note: Rates were revised repeatedly by several banks between June and August 2026. Verify the current rate on the bank’s official website before opening a deposit.
Two features of the scheme matter to depositors:
- The window for special FCNR deposit rates closes on 31 August 2026. New deposits can be booked under the scheme only up to this date, brought forward from an original closing date of 30 September. Banks may execute their related swaps with the RBI until 11 September.
- A twelve-month lock-in applies. Deposits booked under the scheme cannot be withdrawn during the first year.
Once booked, an FCNR rate is fixed for the full tenure and does not change, whether or not the scheme window has closed.
Other important points on FNCR deposit
Who can open an FCNR deposit?
NRIs, Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) can open FCNR deposits, subject to the bank’s account-opening rules.
You can also hold the deposit jointly with another NRI, PIO or OCI. Joint holding with a resident Indian relative is allowed in some cases, usually on a “former or survivor” basis, with the NRI as the main holder.
Which currencies are available for FCNR deposits?
Most banks offer FCNR deposits in USD, GBP, EUR, JPY, AUD and CAD. Some also offer SGD.
The currencies available vary by bank. Some banks may also offer certain currencies only for specific tenures.
What is the minimum and maximum tenure for an FCNR deposit?
FCNR deposits can be opened for one to five years. A deposit for less than one year is not allowed.
How is interest calculated on an FCNR deposit?
Interest is calculated using a 360-day year.
For deposits longer than one year, interest is generally compounded every six months. For one-year deposits, simple interest usually applies. Some banks offer a choice between simple and cumulative interest, depending on the tenure.
How is an FCNR deposit different from an NRE or NRO deposit?
The main difference is the currency.
- FCNR: Your money stays in a foreign currency, such as USD, throughout the deposit.
- NRE: Your foreign earnings are converted into Indian rupees and kept in a rupee deposit.
- NRO: Mainly used for income earned in India, such as rent or dividends, and held in Indian rupees.
We compare FCNR, NRE and NRO deposits in more detail later in this article.
Who is eligible for the special FCNR rates?
The special rates are generally available to NRIs, PIOs and OCIs, just like regular FCNR deposits.
However, a bank may limit a special rate to a particular currency, tenure, deposit amount or group of customers, such as existing account holders.
Does the deposit tenure affect the FCNR rate?
Yes. FCNR rates can change depending on how long you keep your money, and the highest rate is not always for the longest tenure.
Under the current special scheme, the higher rates apply only to three-to-five-year deposits. So, a one-year or two-year deposit may offer a very different rate from a four-year deposit at the same bank.
Rates can also vary within the three-to-five-year range. For example, Bank of Baroda offers a higher rate for four to five years than for three to four years. AU Small Finance Bank does the opposite, offering a higher rate for three to four years than for five years.
HDFC Bank, ICICI Bank and IDFC FIRST Bank offer one rate across the entire three-to-five-year range.
In short, a longer deposit does not automatically mean a higher interest rate.
Does the currency affect the FCNR rate?
Yes. The currency you choose can have a big impact on the interest rate.
FCNR rates are broadly linked to the benchmark interest rate for that currency — such as SOFR for USD, SONIA for GBP and EURIBOR for EUR. Banks then add their own spread, subject to the RBI’s maximum rate limits.
Because interest rates differ across countries, FCNR rates also vary by currency. USD and GBP currently offer some of the highest rates, while EUR is lower and JPY is close to zero.
These differences mainly reflect global interest-rate conditions rather than the pricing decisions of any one bank.
Does the deposit amount affect the FCNR rate?
Sometimes. Banks may offer different rates depending on how much you deposit.
For example:
- Higher rate for larger deposits: Axis Bank and State Bank of India offer higher rates above USD 1 million.
- Lower rate for larger deposits: Indian Bank offers 6.50% up to USD 1 million for a five-year deposit, but 6.00% above USD 3 million.
- Same rate regardless of amount: Bank of Baroda, IDFC FIRST Bank, Kotak Mahindra Bank and AU Small Finance Bank quote the same rate regardless of deposit size.
So, the bank offering the best rate can depend on how much you plan to deposit.
Do market conditions and RBI policies affect FCNR rates?
Yes. FCNR rates are influenced mainly by global interest rates, rather than by regular Indian rupee deposit rates.
Banks also have to consider the cost of managing currency risk. The RBI’s special swap facility introduced in June 2026 reduced this cost for banks and helped them offer higher FCNR rates.
The RBI also sets a ceiling on FCNR interest rates. This means a change in RBI policy can affect rates across many banks at the same time.
Do banks offer different FCNR rates?
Yes. Each bank sets its rates based on its own funding needs and how much foreign-currency funding it wants to attract.
During the current special-rate period, smaller banks have generally offered higher rates than larger banks. Banks have also changed their rates as the 31 August 2026 deadline has approached.
This makes it important to check the latest rate card before opening a deposit.
How do you open an FCNR deposit?
1. Choose a bank and currency
First, check that the bank offers your preferred currency for the tenure you want. Not every bank offers every currency or tenure.
2. Compare the rates
Look at the rate for your exact tenure and deposit amount. Do not rely only on the headline rate, as the rate may be different for your deposit.
3. Check eligibility and minimum deposit
Make sure you meet the bank’s eligibility requirements. Also check the minimum deposit amount for your chosen currency and whether any special-rate conditions apply.
4. Submit your documents
You will normally need documents confirming your non-resident status, identity and overseas address, along with the bank’s account-opening forms.
5. Fund the deposit
You can usually fund the FCNR deposit through an inward remittance in the chosen foreign currency or by transferring money from an existing NRE or FCNR account, subject to the bank’s rules.
6. Choose the tenure and interest option
Select your deposit period. If the bank offers a choice, you can also select simple or cumulative interest.
7. Keep the deposit confirmation
Once the deposit is opened, keep the deposit advice or confirmation. It should show important details such as the interest rate, tenure and maturity date.
How much can a special FCNR rate increase your returns?
Here is a simple example.
Suppose you deposit USD 100,000 for five years. The table below compares a regular FCNR rate of 3.25% with a special rate of 6.25%.
| Regular FCNR: 3.25% | Special FCNR: 6.25% | |
|---|---|---|
| Approx. interest per year | USD 3,250 | USD 6,250 |
| Approx. interest over 5 years* | USD 16,250 | USD 31,250 |
| Difference | — | USD 15,000 |
This is a simple illustration. It does not account for compounding, fees or currency-specific calculation methods.
The difference can also be significant when comparing two special rates. For example, on a USD 100,000 deposit over five years, a 6.25% rate versus a 7.40% rate creates an approximate difference of USD 5,750 in simple interest.
Actual returns will vary because FCNR deposits may compound interest every six months and each bank may have its own terms and calculation method.
Faqs about special FCNR Deposit Rates
What is a special FCNR deposit rate?
A special FCNR rate is a higher-than-usual interest rate offered on an FCNR deposit for a limited period or under specific conditions. It may be a bank’s own promotional rate or part of a wider RBI scheme. The offer may come with conditions such as a specific tenure, minimum deposit amount or deadline for opening the deposit.
Who can get special FCNR rates?
Generally, the same people who are eligible for regular FCNR deposits can get the special rates — NRIs, PIOs and OCIs. However, the bank or scheme may have additional conditions, such as a minimum deposit, specific tenure or deadline for opening the deposit.
Which banks offer special FCNR rates?
The current scheme has attracted banks across different categories, including public sector banks, large and mid-sized private banks, old private sector banks, foreign banks and small finance banks. Banks currently quoting special rates include State Bank of India, Bank of Baroda, Indian Bank, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IDFC FIRST Bank, Federal Bank, HSBC India, City Union Bank and AU Small Finance Bank.
Are special FCNR rates higher than regular rates?
Yes. Under the current scheme, special rates for three-to-five-year deposits are significantly higher than the historic 2% to 4% range generally seen on FCNR deposits. However, special rates come with conditions, so it is important to look at the tenure, deposit amount, lock-in and premature withdrawal rules, not just the interest rate.
What is the minimum deposit for a special FCNR deposit?
The minimum amount depends on the bank and currency. It can range from around USD 1,000 at some banks to USD 500,000 for certain preferential rate offers. Always check the bank’s latest terms for the currency and rate you want.
Which currencies are available for FCNR deposits?
The most common currencies are USD, GBP, EUR, JPY, AUD and CAD. Some banks also offer SGD. The currencies available can differ by bank and tenure. Some banks, for example, may offer certain non-USD currencies only for shorter deposit periods.
Is interest on an FCNR deposit taxable in India?
For eligible non-residents, FCNR interest is exempt from Indian income tax under Section 10(15)(iv)(fa) of the Income Tax Act, 1961. There is also no TDS on this interest in India. However, you may have to pay tax in your country of residence, depending on its local tax rules.
Can I take my FCNR money back overseas?
Yes. Both the principal and interest are fully repatriable, subject to applicable FEMA rules. This means you can generally send the money back to your overseas account when the deposit matures.
Can I withdraw an FCNR deposit before maturity?
Under the current special scheme, you cannot withdraw the deposit during the first 12 months. After the 12-month period, premature withdrawal is generally allowed. The interest paid is usually based on the lower of the contracted rate or the rate applicable for the period the deposit was actually held. Check your bank’s terms before making an early withdrawal, as the exact rules can vary.
Does the special rate apply to all FCNR tenures?
No. The current special scheme applies to fresh FCNR deposits with a tenure of three to five years. One-year and two-year deposits continue to be priced at the bank’s regular FCNR rates.
Can I renew an FCNR deposit at the special rate?
Not necessarily. The special rate is linked to the scheme and its applicable window. If your deposit matures after the scheme has closed, a renewal will generally receive the rate available at the time of renewal, rather than automatically retaining the original special rate. It is worth checking your renewal instructions before the deposit matures.
How often do banks change FCNR rates?
Banks can change their FCNR rates periodically based on movements in international interest-rate benchmarks and market conditions. During the current special-rate window, several banks changed their rates more than once between June and August 2026. If you are planning to open a deposit, check the bank’s latest rate card rather than relying on an older rate.
