FCNR deposits are one of the best NRI investment options in India. Since FCNR deposits are maintained in a foreign currency, there is no risk of exchange rate fluctuations. Moreover, NRIs don’t need to pay tax on interest earned from such deposits in India. Latest HSBC FCNR rates in different currencies are given below.
You can book FCNR fixed deposit online by clicking the link below:
HSBC FCNR Rates
Refer the following table to view the latest HSBC Indian FCNR Rates:
| Period | USD | GBP | EUR | JPY | AUD | CAD | CHF | SEK | DKK |
|---|---|---|---|---|---|---|---|---|---|
| 1 to less than 2 years | 2.50% | 3.5% | 0.01% | 0.01% | 0.10% | 0.10% | 0.01% | 0.01% | 0.01% |
| 2 to less than 3 years | 3.75% | 0.5% | 0.01% | 0.01% | 0.10% | 0.10% | 0.01% | 0.01% | 0.01% |
| 3 years | 3.25% | 0.5% | – | – | – | – | 0.01% | 0.01% | 0.01% |
Note:
- These rates are effective from 16 November 2022.
- Interest rates are subject to periodic changes
- Interest on FCNR deposits will be paid on completion of each year.
Features and Benefits of FCNR Deposits
- Funds in FCNR deposits are held in a foreign currency which allows depositors to transfer the entire amount (both principal and interest) outside India without any restrictions.
- Interest earned in an FCNR fixed deposit account is exempt from tax in India.
- Premature withdrawal is subject to relevant clauses.
- NRIs can add a nominee to their FCNR deposit by HSBC Bank.
- An FCNR deposit can be held jointly with an NRI and close resident relatives.
- In case of a deposit jointly held with a resident, the operation will be only on ‘Former or Survivor’ basis.
HSBC Bank FCNR Minimum Deposit
Below is the minimum amount required to open an FCNR deposit with HSBC Bank in different currencies:
| Currency | Minimum Deposit |
| US Dollar (USD) | 1,000 |
| British Pound (GBP) | 500 |
| Euro (EUR) | 750 |
| Australian Dollar (AUD) | 1,500 |
| Canadian Dollars (CAD) | 1,500 |
| Japanese Yen (JPY) | 125,000 |
| Danish Krone (DKK) | 1,000 |
| Swiss Francs (CHF) | 1,000 |
| Swedish Krona (SEK) | 1,000 |
HSBC Bank FCNR Premature Withdrawal
- In case of premature withdrawal before the completion of 1 year from the date when deposit was originally made, no interest will be paid.
- For premature withdrawal of deposit after completion of one year, penal interest will be levied at 1%.
- Hence, HSBC Bank will pay an interest that is 1% less than the prevailing rate on the date of deposit placement for the period during which the deposit remained with the bank, or the contractual rate, whichever is lower.
- If the deposit is withdrawn before the minimum period for which deposits were being accepted in the said currency, as on the date of placement of deposit, no interest will be paid.
Why Invest in FCNR Deposits?
- HSBC Bank offers cumulative interest which is credited at the time of maturity or every half-yearly.
- Both principal and interest are fully and freely repatriable from India and are completely tax free.
- Deposits are acceptable in as many as nine currencies – US Dollar (USD), Great Britain Pound (GBP), Euros (EUR), Australian Dollar (AUD), Canadian Dollar (CAD), Japanese Yen (JPY), Danish Krone (DKK), Swiss Francs (CHF), and Swedish Krona (SEK).
- Flexible tenure as under:
- USD,GBP,DKK,CHF,SEK: 1 to 3 years
- EURO, JPY, CAD, AUD: 1 to 2 years
What is the Eligibility Rule for FCNR Account?
Under the FCNR deposit scheme:
- NRIs and OCIs are eligible for FCNR deposit accounts.
- Individuals/entities who are Non-Resident Indians (NRIs) can open FCNR accounts.
- However, individuals/entities from Pakistan and Bangladesh need to seek prior approval from the Reserve Bank of India (RBI).
- Indian staff members employed with the Indian Embassy in Pakistan/Bangladesh, as well as their non-resident dependents, can open these accounts without requiring prior approval.
- It is important to note that the NRI account holder must personally open the account and it cannot be done by someone holding power of attorney in India.
SBNRI for NRI Fixed Deposit
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 complete the entire process in the comfort of your home. Also, visit our blog and YouTube Channel for more details.
