What is the minimum tenure of an FCNR Deposit?
The Minimum tenure of an FCNR Deposit is 1 year.
What is an FCNR Deposit?
A Foreign Currency (Non-Resident) Account which is a term deposit account in USD, GBP, EUR, JPY, AUD, CAD, SGD, HKD, and others. The ‘term’ in a term deposit account is a fixed tenure of up to 12 months, 24 months, 36 months, 48 months or 60 months that can be opted by the NRIs at the time of account opening. The interest income is not taxable in India and both the principal amount as well as the interest are freely and completely repatriable.
Comparison between NRE/NRO/FCNR Fixed Deposits
There are multiple factors to consider while drawing out a comparison between NRE/NRO/FCNR Fixed Deposits apart from the minimum tenure of an FCNR deposit. Here is an overview of the accounts for you to choose the best Fixed Deposit as per your needs.
Factors to consider
Non Resident External (NRE) Account
|Non Resident Ordinary (NRO) Account|
Foreign Currency Non Resident (FCNR) Account
For income earned outside India
|For income earned from India (pension, rent etc.)|
Foreign Currency Investment in India
USD, GBP, EUR, JPY, CAD, AUD, SGD, HKD and CHF
Tenure of Deposits
1 year to 10 years
|7 days to 10 years|
1 year to 5 years
Up to 6.80%*
|Up to 7.30%*|
Up to 4.05%*
(transfer of money from Indian bank account to foreign bank account)
Both Principal (money invested initially) and Interest completely repatriable
|Up to a maximum of 1 million USD per financial year|
Both Principal and Interest completely repatriable
|Tax on Interest earned (not on principal amount): 30% tax + surcharge + education cess will be deducted at the source of interest earned in India|