FCNR stands for Foreign Currency Non-Resident fixed deposit opened by NRIs who wish to maintain their foreign earnings in a fixed deposit account in India in one of acceptable foreign currencies. Federal Bank offers a FCNR deposit in as many as ten foreign currencies – USD, GBP, Euro, Yen, CAD, AUD, CHF, NZD, SGD, and HKD. Here are Federal Bank FCNR rates effective from August 2023.
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| Period | USD (Less than 2.50 Lakh) | USD (Less than 2.50 Lakh to 10 lakh) | USD (10 LAKH AND ABOVE) |
|---|---|---|---|
| 1 year < 15 months | 5.50% | 5.75% | 5.90% |
| 15 months | 5.50% | 5.60% | 5.60% |
| 15 month < 2 years | 5.15% | 5.15% | 5.15% |
| 2 years to 3 years | 4.35% | 4.35% | 4.35% |
| 3 years to 4 years | 4.00% | 4.00% | 4.00% |
| 4 years to < 5 years | 3.75% | 3.75% | 3.75% |
| 5 years | 3.40% | 3.40% | 3.40% |
| PERIOD | GBP (LESS THAN 2.50 LAKH) | GBP (2.50 LAKH AND ABOVE) |
|---|---|---|
| 1 year < 2 years | 5.50% | 5.50% |
| 2 years < 3 years | 5.00% | 5.00% |
| 3 years < 4 years | 4.00% | 4.00% |
| 4 years < 5 years | 3.50% | 3.50% |
| 5 years only | 3.00% | 3.00% |
| Period | EURO | YEN | CAD | AUD | CHF | NZD | SGD | HKD |
|---|---|---|---|---|---|---|---|---|
| 1 year < 2 years | 3.00% | 0.20% | 4.30% | 4.20% | 0.05% | 0.05% | 0.42% | 0.33% |
| 2 years < 3 years | 2.00% | 0.20% | 4.10% | 4.00% | NA | NA | 0.84% | 0.72% |
| 3 years < 4 years | 2.00% | 0.20% | 4.00% | 4.00% | NA | NA | 0.78% | 0.74% |
| 4 years < 5 years | 1.50% | 0.10% | 3.60% | 3.60% | NA | NA | 0.78% | 0.65% |
| 5 years | 1.50% | 0.10% | 2.85% | 3.60% | NA | NA | 0.80% | 0.57% |
Features & Benefits of Federal Bank FCNR FD
NRIs can get high returns by saving their foreign currency earnings in a bank in India. Since the deposit is held in foreign currencies, you don’t need to worry about fluctuations in exchange rates. Here are key benefits of Federal Bank FCNR deposits:
- This type of investment in a foreign currency is safe from any exchange rate fluctuations.
- Nomination facility is available.
- Attractive and tax-free interest in India.
- Principal as well as interest earned are freely repatriable.
- Flexible period ranging from 1 year to 5 years. However, the fund needs to be deposited for a minimum period of one year to be eligible for interest rate.
- Deposit can be made in as many as ten currencies.
How to Open Federal Bank FCNR Fixed Deposit Account
Here are important points to consider to open a FCNR account with Federal Bank:
- NRIs can open a FCNR account by a remittance from abroad in any of the acceptable currencies.
- The remittance can be made by way of DD, MT, TT, traveler’s cheques, personal cheque, or foreign currency deposited by the applicant personally, or from an existing NRE account of the applicant/ prospective third party depositor.
- The DD should be drawn on a bank in the respective country depending on the currency.
- The depositor needs to inform the branch prior to making FCNR deposit, writing the purpose of remittance as FCNR deposit.
Important Points to Remember
- Fund must be deposited for a minimum period of 1 year to be eligible for interest.
- Interest will not be paid if the deposit is closed before the completion of 1 year.
- Permitted currencies include:
- US Dollars (USD)
- British Pound (GBP)
- Euro (EUR)
- Australian Dollar (AUD)
- Canadian Dollar (CAD)
- Japanese Yen (YEN)
- Swiss Franc (CHF)
- Singapore Dollar (SGD)
- The interest is paid on the basis of 360 days to a year.
- The interest is calculated and paid at intervals of 180 days each and then for the rest of the actual number of days.
To get end to end assistance with booking of FCNR(B) Fixed Deposits, you can connect with our expert using the button at the end of the article. You can also browse through the NRI Account Opening grid that we have prepared specially for NRIs and get expert advisory and assistance seamlessly and complete the entire process in the comfort of your home. Also, visit our blog and YouTube Channel for more details.
FAQs
FCNR deposit is a type of term deposit offered by banks in India for NRI and OCIs. Funds in a FCNR deposit are held in foreign currencies as permitted by the bank. Hence, they are protected from any currency fluctuation.
FCNR deposits are a good investment in many ways – they are not impacted by any exchange rate fluctuations, tax-free in India, and the principal and interest can be repatriated abroad without any restrictions.
Federal Bank FCNR deposit rates vary depending on the currency, amount and term of the deposit. Interest rate on a FCNR deposit made in USD ranges from 3.85% to 5.75% p.a.
No. FCNR deposits can be opened as fixed deposits only, not as savings deposits.
