FCNR deposit also called Foreign Currency Non-Resident deposit, is a deposit for NRIs, OCIs and eligible PIOs. The deposits are of 1 year to 5 years of tenure. It gives you two benefits: the deposit earns interest and your savings are insulated from the vagaries of the rupee exchange rate.

What is an FCNR Deposit? 

An FCNR deposit is a foreign currency term deposit offered by authorised Indian banks to eligible non-residents. It is also known as an FCNR(B) deposit, where “B” refers to the banking account category under applicable RBI rules. Unlike a regular fixed deposit, the deposit is maintained in a permitted foreign currency. The interest rate is also linked to the currency and tenure selected by the depositor.

FCNR deposits can be opened using inward remittances from abroad, or by transferring funds from an existing NRE or FCNR account. Some banks may also allow a loan or overdraft against these deposits, though this totally depends on banks discretion and each bank’s own policy. 

Key Features of FCNR Deposits

Compared to other types of deposits, FCNR deposits have a number of features that make them useful for NRIs seeking to invest their foreign currency with Indian banking institutions.

• Several Foreign Currencies: There are usually several currencies such as USD, GBP, EUR, JPY, AUD, CAD, and SGD on offer but again it varies depending on the bank.
  
• Interest Returns: FCNR deposits can be fixed or floating rate deposits, depending on the deposit product that is offered by the bank.
  
• Repatriable Funds: The principal and interest is repatriable, in accordance with the applicable regulations.
  
• Flexible Tenures: Depositors have options of tenure according to their financial requirements and this is between 1 to 5 years.
  
• Tax Benefit: FCNR interest earned on eligible deposit is not taxable in India as per the applicable regulation.
  
• Loan Against Deposit: Banks can provide loans or overdraft facility against FCNR deposits as per the banks rules and regulations. 

FCNR Fixed Deposits Rate Offered by Top Banks

The FCNR Fixed Deposits rate vary across banks based on the currency, deposit tenure and deposit amount. The table below compares the rates offered for a 5-year FCNR deposit across selected banks. 

Bank	Tenure	USD	GBP	EUR	AUD	CAD
IDFC FIRST Bank	5 Years	6.75%	NA	NA	NA	NA
Federal Bank	5 Years	6.00%	3.00%	1.65%	3.60%	2.25%
ICICI Bank	5 Years	6.00%	5.90%	NA	6.25%	4.50%
HDFC Bank	5 Years	6.00%	5.90%	4.55%	6.25%	4.50%
State Bank of India (SBI)	5 Years	3.05%	2.80%	1.25%	3.85%	2.61%
Kotak Mahindra Bank	5 Years	6.00%	NA	NA	NA	NA
Yes Bank	5 Years	6.60%	3.30%	1.70%	3.35%	2.25%
Indian Bank	5 Years	3.40%	2.70%	1.50%	2.45%	3.00%
Bank of Baroda	5 Years	6.00%	4.75%	3.75%	4.75%	5.15%
Punjab National Bank (PNB)	5 Years	6.50%	6.50%	4.95%	5.50%	4.92%
IndusInd Bank	5 Years	6.75%	4.25%	0.01%	0.01%	0.01%

Note: FCNR FD rates are based on the respective banks’ official rate sheets applicable as of August 2026. Rates may vary based on currency, deposit amount and tenure and are subject to change. 

FCNR Deposit Eligibility Criteria 

The FCNR deposits are open to any eligible individual provided that they meet the non-resident requirement applied. The most important categories eligible are:

• Non-Resident Indians (NRIs): Indian citizens living outside India to work, conduct business, study or undertake other activities that are allowed.
  
• Persons of Indian Origin (PIOs): When the Indian nationals had an Indian passport or parents or grandparents of Indian origin, they are subject to relevant regulations.
  
• Overseas Citizens of India (OCIs): Persons who have obtained an OCI card registered under Section 7A of Citizenship Act, 1955.
  
• Seafarer: Indian citizens who work on ships for foreign or multinational shipping companies qualify as non-residents under the provisions of applicable laws.

How to Open an FCNR Deposit 

Whether through online or offline channels, opening an FCNR deposit remains an option for eligible NRIs and other qualified non-residents. Both methods are laid out below.

Online Method

You can open an FCNR deposit online if your bank provides this facility through net banking or its mobile banking platform.

1. Log In to Net Banking: At very first step you have to login to your respective bank’s net banking with your credentials.
   
2. Select FCNR Deposit: Go to the NRI banking or deposits section and choose the FCNR deposit option.
   
3. Choose the Currency: Select the currency for the deposit.
   
4. Enter Deposit Details: Then, you need to enter the deposit amount, tenure and the other required details.
   
5. Full Verification: Take a moment to check over the credentials entered, then go ahead and do the required authentication.
   
6. Confirm the Deposit: Submit the request and transfer the funds through an approved channel.

Offline Method

One can also open an FCNR deposit by visiting the nearest branch. All the steps for the same are mentioned below: 

1. Visit the Bank Branch: Visit a branch that offers FCNR deposit services.
   
2. Provide the Details: Ensure that you have filled all the details correctly such as personal, deposits and currency.
   
3. Upload KYC documents: Please upload the documents required for identity, address and non-resident status.
   
4. Submit KYC Documents: Provide the required identity, address and non-resident status documents.
   
5. Submit the Deposit Request: Submit the completed form and transfer the funds through an approved mode.
   
6. Receive Deposit Confirmation: After verification of all the documents and details bank will approve the request and give the confirmation of the FCNR deposit. 

Document Required To Open FCNR Deposit

In the process of opening an FCNR deposit, certain documents may be required for verification purposes. The exact document which are needed can differ bank to bank. Mentioned below are some of the key documents:

• Passport: A valid passport is needed which serves as proof of identity as well as nationality.
  
• Visa or Work Permit: Appropriate visa, work permit or other document proving your overseas residency status.
  
• Overseas Address Proof: Utility bill, Bank statement or Address proof issued by Government.
  
• PAN Card: PAN details may be required as part of the bank’s KYC process.
  
• OCI/PIO Card: This card may require for only eligible incestors which are OCI and PIO.
  
• Recent Photographs: Passport-size photographs, if required by the bank.
  
• Additional KYC Documents: Further KYC and verification requirements at bank may also require more documents. 

FCNR Deposit vs NRE Fixed Deposit

FCNR Deposit vs NRE Fixed Deposit depends mainly on the currency in which you want to hold your savings. An FCNR deposit lets you retain funds in a foreign currency, while an NRE fixed deposit holds the funds in Indian rupees.

Feature	FCNR Deposit	NRE Fixed Deposit
Deposit Currency	Foreign currency	Indian rupees
Currency Conversion	Funds are not converted into INR throughout the tenure of deposit.	Foreign currency is converted into the Rupees.
Maturity Proceeds	Provided in the selected foreign currency	Provided in INR
Tax Treatment in India	Interest is exempt, subject to applicable regulations	Interest is exempt, subject to applicable regulations
Suitable For	NRIs who want to retain funds in a foreign currency	NRIs who are comfortable holding funds in INR

Things You Should Know Before Opening an FCNR Deposit

Currency, interest rate, withdrawal rules, and maturity instructions, comparing all of these are all equally important before choosing an FCNR deposit.

• Select the Currency Carefully: Choose a currency that matches your future financial needs. Converting the deposit into another currency at maturity may involve exchange-rate movements and conversion costs.
  
• Read the Applicable Interest Rate: The FCNR deposit interest rates are subject to difference in terms of the currency as well as the tenure. Please note that the rate that appears in this brochure may change over time, so please consult the bank’s current rate before making any deposits.
  
• Understand Premature Withdrawal Rules: It is important to understand the premature withdrawal rules and terms before opting for the premature withdrawal. Generally, the interest shall not be payable on FCNR deposits withdrawn within the minimum period of 1 year. After one year, for withdrawals, interest may be recalculated as per applicable fixed deposit interest rate for the period during which the amount was kept with the bank.
  
• Review Maturity Instructions: When the deposit is opened, review the maturity instructions selected. Either deposit can be renewed or proceeds of maturity can be paid out, depending on bank’s terms.
  
• Keep Documents Ready: Have the necessary KYC documents on hand before making the application. Birth certificate, PAN and proof of address and proof of Non-resident status may be one of those. The requirements may differ from one bank to another.

Final Thoughts 

FCNR deposits can be a good choice for NRIs who want to invest and prefer a foreign currency. FCNR Fixed Deposit rate depends on the bank, currency and tenure. Do check the rates offered and select the FCNR deposit tenure that suits your financial needs the best before investing. Also check the currency exchanges early withdrawal policies and repatriation policies. These will assist you in choosing the FCNR deposit that would be suitable for your financial objectives.

FAQs 

What is the full form of FCNR?

FCNR stands for Foreign Currency Non-Resident. It refers to a foreign currency term deposit available to eligible non-residents through authorised banks in India.

What is the tenure of an FCNR deposit?

FCNR deposits are available for tenures between 1 year and 5 years. The rate you earn depends on which currency you pick and how long you lock the deposit in for. 

Is interest on FCNR deposits taxable in India?

Deposits under FCNR are not taxable in India on interest earned on deposits meeting certain criteria. 

Can FCNR deposit funds be repatriated?

Yes, FCNR deposits can be repatriated which means both principal and interest from deposit can be transferred from an indian bank to your home country in the original foreign currency. This is subject to applicable regulations set by the bank.