Foreign Currency Non-Resident (FCNR) accounts have become an attractive option for NRIs looking to invest their foreign currency earnings in India. South Indian Bank, one of the prominent public sector banks in India, offers competitive FCNR rates on fixed deposits made in major currencies such as USD, GBP, EUR, AUD, CHF, JPY and CAD. This blog sheds light on the South Indian Bank FCNR rates and the benefits of investing in the FCNR accounts.
South Indian Bank FCNR Rates 2023
Given below are the South Indian Bank latest FCNR deposit interest rates. These interest rates are effective from 2nd August 2023.
| Maturity Period | USD | GBP | EUR | AUD | CHF | JPY | CAD |
|---|---|---|---|---|---|---|---|
| 1 Year to less than 2 Years | 5.50-5.90% | 4.00% | 1.00% | 4.20% | 0.05% | 0.20% | 3.50% |
| 2 Years to less than 3 Years | 4.65% | 3.75% | 1.00% | 3.50% | 0.00% | 0.20% | 3.50% |
| 3 Years to less than 4 Years | 3.75% | 2.45% | 1.00% | 3.00% | 0.00% | 0.05% | 3.15% |
| 4 Years to less than 5 Years | 3.00% | 2.45% | 1.00% | 3.20% | NA | 0.05% | 3.20% |
| 5 Years | 3.00% | 2.45% | 1.00% | 3.45% | NA | 0.05% | 3.25% |
South Indian Bank FCNR(B) Deposit: Premature Withdrawals and Penalty
- South Indian Bank FCNR(B) deposits do not incur any penalty for premature withdrawals.
- If the FCNR account is closed within one year, no interest will be paid.
South Indian Bank FCNR Account: Features and Benefits
Listed below are the key features and benefits of South Indian Bank FCNR account:
- NRIs can maintain their Foreign Currency accounts in multiple currencies. These include- GBP (British Pound), USD (American Dollar), EUR (Euro), AUD (Australian Dollar), CHF (Swiss Franc), CAD (Canadian Dollar), and JPY (Japanese Yen).
- South Indian Bank’s FCNR accounts offer a high rate of returns.
- Accounts can be opened for different maturity periods.
- The investment is protected from the impact of exchange rate fluctuations.
- Both the balance and interest earned can be freely repatriated.
- Joint accounts are allowed for added convenience and flexibility.
- NRIs can avail loans against their FCNR FDs.
- South Indian Bank offers three different schemes under FCNR deposits that are-
- Kalpakanidhi
- FCNR Platinum
- Fixed Deposits
South Indian Bank FCNR Deposit Schemes
1. Kalpakanidhi
Given below are the special features of the Kalpakanidhi FCNR account:
- Interest is compounded half-yearly in this reinvestment plan.
- This scheme provides FDs for periods ranging from above 1 year to 5 years.
- Compounding of interest yields higher effective returns.
2. FCNR Platinum
Given below are the special features of the FCNR Platinum account:
- NRIs are eligible for this scheme.
- The accepted currencies for deposit are the US Dollar, Pound Sterling, Euro, etc..
- A minimum deposit amount of 10000 units in each currency is required.
- The deposit duration ranges from one year and one day to five years.
- To secure the maturity value of the deposit at the due date, depositors need to make a written request using the prescribed format suggested by the International Banking Division (IBD)-South Indian Bank, which can be found on our website under Help Desk. The process is straightforward, and customers can receive assistance from the relevant branch.
3. Fixed Deposits
Given below are the special features of the Fixed Deposit Scheme:
- The simple interest in this scheme will be paid quarterly.
- NRIs can make deposits for periods ranging from 1 year to 5 years.
Are South Indian Bank FCNR Deposits Taxable?
The interest income earned from an FCNR account in India is not liable to taxation for NRIs. This is as per the provisions of the Income Tax Act 1961. Upon maturity, the funds can be transferred to any RFC (Resident Foreign Currency) or resident Rupee account without incurring any tax liability. However, it is important to note that the taxability of interest earned from an FCNR account may vary depending on the laws and regulations of the country where the NRI resides.
What is the Limit to Repatriate Funds from SIB FCNR?
There is no limit for repatriation of funds from FCNR accounts. The FCNR accounts are fully and freely repatriable fixed deposit accounts. Being a foreign currency denominated account, this account eliminates the risk of currency conversion fluctuations, thereby providing a safer option compared to other fixed deposits for NRIs.
Contact SBNRI
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.
