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FCNR(B) FD & RFC FD Interest Rates

 

Stay updated with the latest interest rates on Foreign Currency Non-Resident Bank (FCNR)(B) and Resident Foreign Currency (RFC) Fixed Deposits designed to help NRIs and returning NRIs grow their foreign earnings efficiently.

 

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Premature withdrawal of FNCR (B) Deposit:

  • Before completion of 1 year: No interest will be payable and no penalty will be levied.
  • After completion of 1 year: On premature withdrawal of the deposit, Interest shall be paid at the rate applicable to the amount and period for which the deposit remained with the bank and no penalty will be levied
  • Important Update: Effective Jun 01, 2023, FCNR Deposits will not be offered in HKD. Existing FCNR Deposits booked under HKD which are due for auto-renewal will not be auto-renewed. Please contact your Relationship Manager or call our Customer Care and submit instructions for maturity credits.

 

RFC Fixed Deposit Interest Rates

Interest rates (percent per annum) w.e.f April 01st, 2026
Currency USD GBP
Overnight and upto 30 days **** ****
30 days to less than 6 months 0.75 0.25
6 months to less than 1 year 1.00 0.50
12 months < 24 months 4.00 4.40
>= 24 months to < 36 months 3.35 3.85
36 months 3.00 NA

 

  • On premature withdrawal including partial withdrawal of the RFC deposits, Interest shall be paid at the rate applicable to the amount and period for which the deposit remained with the bank, less 1% penalty.

FCNR(B) FD FAQs

What is the difference between FCNR(B) and RFC Fixed Deposits?

FCNR(B) FDs are for NRIs to invest in foreign currency while staying protected from exchange rate risks. RFC FDs are ideal for returning NRIs to hold their foreign earnings in India in permitted foreign currencies. 

What currencies are available for FCNR(B) and RFC Fixed Deposits?

FCNR(B) FDs are available in USD, GBP, SGD, CAD, and AUD. RFC FDs are available in USD and GBP only.

Are interest earnings from FCNR(B) and RFC FDs taxable in India?

Interest earned on FCNR(B) FDs is tax-free in India, while interest earned on RFC FDs is taxable as per Indian laws

Can I withdraw my FCNR(B) or RFC FD before maturity?



Yes, premature or partial withdrawals are allowed.

For FCNR(B):

  • No interest is paid if withdrawn before 1 year.
  • After 1 year, interest is paid as per the applicable rate for the completed tenure, with no penalty. 

For RFC:

  • 1% penalty is applied on the applicable rate.
  • No interest is paid if closed within 1 month.

 

What are the minimum deposit amount and tenure for FCNR and RFC deposits?

For FCNR(B) FDs:

  • Minimum deposit: USD/GBP 1,000; SGD/CAD/AUD 2,000
  • Tenure: USD – 1 to 5 years; other currencies – 1 to less than 3 years

For RFC FDs:

  • Minimum deposit: USD/GBP 1,000
  • Tenure: USD:1 month to 36 months and GBP: 1 month to less than 36 months

How are FCNR deposit interest rates calculated?

FCNR deposit interest rates are calculated based on a 360-days calendar year. The interest is compounded every 180 days. Besides this, the rates are set by banks based on international benchmarks, the deposit currency, tenure and the bank’s internal pricing policies.

How is the interest rate determined for FCNR (B) deposits?

The FCNR (B) deposit interest rates are determined based on overnight or short-term benchmarks like SOFR/LIBOR. This is for specific currencies and a spread set by banks under RBI guidelines.

Can interest rates change mid-tenure?

The interest rate is determined at the time of booking and it cannot change mid-term. Thus, the funds are also protected from market fluctuations.

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