IndusInd Bank offers FCNR (Foreign Currency Non-Resident) fixed deposits for NRIs (Non-Resident Indians) to invest their foreign currency earnings in a term deposit account in India. These deposits in FCNR FD account can be made in various foreign currencies, and they also offer attractive interest rates ranging from 2.30% to 5.75% per annum. Scroll through the blog to know more about IndusInd Bank FCNR Deposit rates.
IndusInd Bank FCNR Deposit Rates
IndusInd Bank’s FCNR rates for deposits made in different foreign currencies are given below. These interest rates are applicable w.e.f. 08 July 2023.
| Period | USD < 1 Million | USD 1 Million & Above | GBP | EUR | JPY | AUD | CAD |
|---|---|---|---|---|---|---|---|
| 1 year to less than 2 years | 5.70% | 5.75% | 5.65% | 3.70% | – | 4.75% | 4.60% |
| 2 years to less than 3 years | 5.35% | 5.60% | 5.00% | 3.65% | 2.40% | 4.45% | 4.60% |
| 3 years to less than 4 years | 5.00% | 5.00% | 4.25% | 2.55% | – | 4.10% | 4.30% |
| 4 years to less than 5 years | 4.50% | 4.50% | 4.00% | 2.00% | – | 4.10% | 4.10% |
| 5 yrs | 4.50% | 4.50% | 4.00% | 2.00% | 2.30% | 4.10% | 4.00% |
Note-
- High Value / Bulk Deposit of Rs 2 Crs ( or equivalent) & above shall be accepted at the sole discretion of the Bank.
- RFC Deposit Rates are same as that applicable for FCNR deposit. However RFC deposits are only available in USD, GBP & EUR.
IndusInd Bank FCNR (B) Deposit Premature Withdrawals
- No interest will be payable if the FCNR (B) deposit remains in force less than 1 year.
- If the deposit has remained in force for more than 1 year, interest will be calculated at the rate applicable for the period the Deposit has actually remained with the Bank less 0.25%.
- Additionally, in case of premature withdrawal of FCNR (B) deposits, SWAP (conversion) cost will be recovered, basis the prevailing market rates on the date of premature withdrawal, between the FCNR (B) currency and Indian Rupees
IndusInd Bank FCNR Deposits: Features
Some of the key features of IndusInd Bank FCNR deposits are:
- The minimum deposit amount for FCNR deposits varies based on the chosen currency. It can range from USD 1,000 to GBP 1,000, depending on the currency.
- The tenure of FCNR deposits can range from 1 year to 5 years, depending on the currency.
- The deposits can be made in 6 currencies that are USD, GBP, EUR, JPY, AUD and CAD.
- Interest earned on FCNR deposits is tax-free in India.
- The principal and interest earned on FCNR deposits are fully repatriable, subject to the rules and regulations of the Reserve Bank of India (RBI).
What is FCNR Deposit?
FCNR stands for Foreign Currency Non-Resident deposits, which are term deposits that allow Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to deposit their foreign currency earnings in Indian banks. FCNR deposits are denominated in foreign currencies such as US Dollars (USD), Pounds Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Australian Dollars (AUD), Canadian Dollars (CAD) and Singapore Dollar (SGD).
Is FCNR Deposit Good?
FCNR deposits are a great investment option for NRIs who wish to retain their savings in foreign currency. Here are some of the advantages of FCNR deposits:
- FCNR deposits generally offer higher interest rates than domestic fixed deposits in India, which can provide a higher return on investment for NRIs and PIOs.
- Since the principal and interest earned on FCNR deposits are paid in the same foreign currency as the deposit, the depositor is protected against exchange rate fluctuations, which can be beneficial for those who want to avoid currency conversion risk.
- Interest earned on FCNR deposits is not subject to Indian income tax, which can be advantageous for NRIs and PIOs.
- The principal amount and interest earned on FCNR deposits are fully repatriable in the foreign currency of the deposit, subject to certain rules and regulations, which can provide a hassle-free way to repatriate earnings.
- NRIs can open an FCNR FD account in several currencies including, US Dollar, Pound Sterling, Euro, CAD, AUD, Yen, etc.
How FCNR Deposit Works?
FCNR deposit works as follows:
- The depositor first needs to select the foreign currency in which he/she wants to make the deposit and the amount he/she wants to deposit, subject to the minimum deposit requirements of the bank.
- The depositor then has to choose the tenure of the FCNR deposit, which can range from 1 year to 5 years or more, depending on the bank and the currency.
- After agreeing on the fixed interest rate offered by the bank, the depositor has to transfer the foreign currency funds to the FCNR deposit account with the bank.
- After this, he/she can earn the fixed interest on the FCNR deposit account for the duration of the tenure.
- At the end of the tenure, the principal amount and interest earned are paid back to the depositor in the same foreign currency as the deposit. The depositor can repatriate the funds back to their country of residence or choose to reinvest the funds in a new FCNR deposit.
- FCNR deposits can also be prematurely withdrawn subject to certain conditions and penalties, such as a reduction in the interest rate earned on the deposit.
Contact SBNRI
SBNRI is an online one-stop platform for expert services and advisory on all major NRI specific aspects including NRI FD schemes.
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 at the comfort of your homes. Also, visit our blog and YouTube Channel for more details.
