Latest FCNR interest rates from SBI, HDFC Bank and ICICI Bank

Last week, the Reserve temporarily allowed banks to accept new FCNR(B) and NRE deposits from Non-Resident Indians (NRIs) regardless of current interest rate limits, effective July 7, 2022.

According to the RBI Circular, “In this regard, banks are advised that effective 07 July 2022, the interest rate cap applicable to FCNR(B) deposits is temporarily removed for additional FCNR(B) deposits mobilized by banks for the period until October 31, 2022.

Following the circular of many banks including

and reviewed their FCNR filings.

What is an FCNR account?

The non-resident foreign currency account is called FCNR. An FCNR account, which allows you to keep money earned abroad in foreign currency, is an option if you are an NRI and wish to maintain a fixed deposit account in India.

According to HDFC Bank, “FCNR accounts are a great investment option for NRIs if you want to keep your money in foreign currency and get good returns at the same time. Since your money will be held in foreign currency, you may be spared from the risk of fluctuating exchange rates.It also ensures that you earn higher returns with no risk.Also, if you don’t know where to save or invest your hard-earned money, you can opt for an FCNR account.

State Bank of India FCNR Rate

revised non-resident foreign currency rates effective July 10, 2022. According to the SBI website, for a one-year FCNR deposit, simple interest is applicable. For deposits over 1 year, interest is compounded semi-annually.

SBI interest rates for FCNR deposits are between 2.85% and 3.25% for USD currency.

Premature withdrawals of FCNR deposits (B)

If the deposit is withdrawn before one year, no interest is due. There is no early withdrawal penalty for deposits withdrawn after one year. However, interest will be paid at the prevailing rate during the period the deposit is held by the Bank. Interest will be paid at the rate in effect on the day of deposit.

HDFC bank FCNR rate

HDFC Bank interest rates for FCNR deposits are between 2% and 3.35% for USD currency. The bank has revised the FCNR rates with effect from July 9, 2022.

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According to the HDFC Bank website, “FCNR deposit from JULY 1, 2021 for GBP, EURO and JPY currencies will only be offered for a term of one year. Existing FCNR deposits reserved in GBP, EURO and JPY for the term 1 year 1 day to 5 years and which are to be renewed automatically will be automatically renewed for a term of 1 year by default.

ICICI Bank FCNR rate

The new FCNR interest rates are applicable from July 13, 2022. ICICI Bank offers FCNR deposits for USD, GBP, SGD, CAD, AUD and HKD.

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