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Best FCNR Rates in India (October 2026): SBI, HDFC, ICICI, Axis and IDFC First
Apoorva K
Rupeeflo Team
If you can leave your dollars alone for four or five years, IDFC First Bank pays the most right now, at 4.75%. If you only want to commit for a year, Punjab National Bank and Bank of Baroda come out on top at 5.00%.
The 6% and 7% rates you may have seen over the summer are gone. They came from a special RBI scheme that ended on 31 August, and most big banks are back to paying around 3% for longer deposits.
Rates updated on 13 October 2026. We check each bank's published rate card at the start of every month and update this page.
Rates updated on 13 October 2026. We check each bank's published rate card at the start of every month and update this page.
New to FCNR deposits? Start with our guide on what an FCNR account is and why NRIs use it.
FCNR deposit rates by bank: October 2026
USD deposits under $1 million, rate per year, as published by each bank. Sorted by the 5 year rate.
Bank | 1 to 2 years | 2 to 3 years | 3 to 4 years | 4 to 5 years | 5 years | Effective from |
|---|---|---|---|---|---|---|
4.50% | 4.25% | 4.25% | 4.75% | 4.75% | 1 Oct 2026 | |
4.50% | 4.25% | 4.15% | 4.00% | 4.00% | 1 Sep 2026 | |
4.50% | 4.00% | 3.75% | 3.75% | 3.75% | 1 Oct 2026 | |
3.80% | 3.55% | 3.50% | 3.25% | 3.25% | 4 Sep 2026 | |
3.75% | 3.50% | 3.25% | 3.25% | 3.25% | 1 Sep 2026 | |
3.35% | 3.35% | 3.35% | 3.10% | 3.10% | 1 Oct 2026 | |
5.00% | 3.48% | 3.25% | 2.96% | 3.06% | 1 Oct 2026 | |
4.40% | 3.55% | 3.35% | 2.95% | 3.05% | Rate card of 13 Oct 2026 | |
5.00% | 3.55% | 3.35% | 2.95% | 3.05% | Rate page checked 13 Oct 2026 |
Banks revise FCNR rates often, sometimes more than once a month. Check the bank's rate page on the day you book.
Best FCNR rates by tenure: PNB and Bank of Baroda for 1 year, IDFC First for 5
The best bank depends on how long you lock in. Punjab National Bank and Bank of Baroda pay the most for 1 to 2 years, then drop to about 3% for longer terms. IDFC First, AU Small Finance Bank and Karur Vysya Bank hold their rates better the longer you commit.
1 to 2 years: PNB and Bank of Baroda at 5.00%. IDFC First, AU and Karur Vysya follow at 4.50%, then SBI at 4.40%.
2 to 3 years: IDFC First and AU at 4.25%, Karur Vysya at 4.00%. Every other bank pays 3.35% to 3.55%.
3 to 5 years: IDFC First at 4.25% to 4.75%, then AU at 4.00% to 4.15% and Karur Vysya at 3.75%. The big public and private banks pay 2.95% to 3.50%.
Over five years the difference adds up. $50,000 at IDFC First's 4.75% earns about $13,200 in interest. At HDFC Bank's 3.10% it earns about $8,300. Both figures assume half-yearly compounding; each bank's method differs slightly.
FCNR Deposits of $1 million or more
Large deposits sit on separate rate slabs. SBI pays 4.60% for 1 to 2 years on $1 million to $2.5 million, and 4.80% on $2.5 million to $5 million. IDFC First pays a flat 4.00% at every tenure above $1 million. Axis pays the same rates above and below $1 million. At this size, ask the bank's NRI desk for a quote before you book.
The 7% FCNR rates ended when the RBI window closed on 31 August
The special FCNR rates were tied to an RBI scheme, and that scheme is over. New deposits are back at the normal 3% to 4.75% range.
On 8 June 2026 the RBI opened a dollar swap facility that took over the hedging cost banks normally carry on FCNR deposits. Banks passed the saving on: 3 to 5 year USD rates jumped to 6% and above, and a few smaller banks went past 7%. The facility was meant to run until 30 September. The RBI closed it a month early, on 31 August, and banks cut rates from 1 September. HDFC Bank's 5 year rate went from 6.25% to 3.15%, and it has since moved to 3.10%.
If you booked a deposit before 31 August, nothing changes for you. Your rate is fixed until maturity. The RBI has not announced any plan to reopen the window.
Lock-in, early withdrawal and tax on FCNR deposits
The rate is only half the decision. These rules decide what you actually keep.
The first year earns nothing if you break it
Withdraw an FCNR deposit within 12 months and you get your principal back with no interest. SBI, ICICI Bank, IDFC First and Karur Vysya Bank all state this on their rate pages. Only put in money you will not need for at least a year.
Breaking the deposit after a year
After the first year, SBI and ICICI Bank charge no penalty. They pay interest for the time your money actually stayed, at the rate that applied when you booked. Others charge for it: AU Small Finance Bank applies a 1% penalty on deposits opened from 1 July 2026. Check the bank's terms before you pick a 5 year deposit you might break early.
Tax: free in India, taxable in the US
FCNR interest is tax-free in India while you are an NRI. If you are a US tax resident, it counts as income on your US return, and the account counts toward your FBAR and FATCA reporting. Our guide on FCNR interest and US tax walks through the forms.
Deposit insurance covers ₹5 lakh per bank
DICGC insurance covers up to ₹5 lakh per depositor per bank, principal and interest combined. That is a small slice of most FCNR deposits, so the bank's own strength matters more than the insurance.
FCNR vs NRE FD vs GIFT City FD for dollar savings
An FCNR deposit keeps your money in dollars, so you earn less than an NRE FD but take no rupee risk.
FCNR deposit: USD in, USD out. Rates in the table above. Fully repatriable.
NRE fixed deposit: your dollars convert to rupees. Rupee rates are higher, but if the rupee weakens during the deposit, your return in dollars shrinks.
GIFT City FD: also held in USD, with shorter tenures available. We compare the two in FCNR vs GIFT City FD.
Deciding whether to move money from the US at all? We compare FCNR vs US Treasuries vs a high-yield savings account and look at where US NRIs should park their savings, including GIFT City accounts and GIFT City USD account rates vs a US HYSA.
Opening an FCNR deposit from the US
If you already have an NRE or NRO account with the bank, you can usually book an FCNR deposit in net banking in a few minutes. You fund it by sending dollars from your US account or by moving money from your NRE account.
New customers go through the bank's NRI account opening first. Banks typically ask for your passport, visa or OCI card, overseas address proof and PAN, and many want notarised or attested copies. Our digital notarisation handles that from your phone.
FCNR deposit rates: questions NRIs ask
Which currencies can an FCNR deposit be held in?
Most major banks accept USD, GBP, EUR, AUD, CAD and JPY, and some add SGD. USD pays the most. EUR and JPY deposits earn close to zero at most banks.
Does my FCNR rate change after I book?
No. Most banks fix the rate for the full term. New rate cards apply only to deposits booked after they take effect.
Can I keep my FCNR deposit after moving back to India?
Yes. You can hold it until it matures. Its tax treatment changes once your residential status changes. If you qualify as RNOR after returning, the interest can stay tax-free for a while, so check where you stand before renewing.
