How to Book an FCNR Fixed Deposit Online
Neha Navaneeth
Marketing & Content Associate
Nov 20, 2025
How to Book an FCNR Fixed Deposit Online
If you are an NRI with foreign currency earnings and want a safe investment option, FCNR fixed deposits are one of the best options for you. You can book a term deposit account with your foreign earnings without worrying about the volatility of currency exchange rates. The interest is tax-free in India, and on maturity, you can also repatriate funds to your foreign bank account. Keep reading to learn how to book FCNR fixed deposits.
What are FCNR Fixed Deposits?
An FCNR fixed deposit allows NRIs to park their overseas earnings in Indian banks for a specific time period, anywhere between 12 months and five years. You can deposit savings in a foreign currency denomination, and it protects your savings from currency fluctuations.
FCNR fixed deposits are term deposits, and the money you invest will be locked until the maturity period. By putting in cash without converting it into local money, you can avoid exchange rate changes and might gain from solid tax-free interest offers on these accounts.
The benefits of FCNR fixed deposits are:
Avoid currency exchange variations by investing the money in the foreign currency of your choice.
Interest earned plus the original amount can be moved to an overseas account or an NRE account of your choice.
Interest doesn’t get taxed in India for NRIs.
Check FCNR deposit rates at different banks along with various time periods to grab a deal that fits your needs.
Create a joint FCNR fixed deposit with two or more NRIs/PIOs or a resident relative (on a former or survivor basis).
Use as collateral for loans (depending on bank terms).
Note: The minimum deposit amount and available currencies for FCNR fixed deposits may differ by bank. Always check your bank’s specific criteria before booking.
Explore more about saving foreign income in Indian bank accounts.
What You Need Before Booking
When you're thinking about setting up FCNR fixed deposits, here’s what you should remember:
Eligibility: Must be an NRI/OCI/PIO holding valid documents. For KYC, upload your passport, foreign visa, or a residence permit. Sometimes a PAN card may also be needed. Proof of where you stay abroad might be needed as well. A FATCA form could apply if you work in the US, while a CRS statement may matter if you live in the UK, Canada, or another nation in the CRS network.
Currency along with duration: Different banks let you set up FCNR fixed deposits using currencies such as US dollars, British pounds, euros, Australian, Canadian, or Singapore dollars. The term deposit periods typically vary from one year to five years.
Funding: Money goes into an FCNR account via wire transfer, by transferring funds from an NRE, or by simply renewing an existing FCNR deposit.
Know your options: Use an FCNR deposit interest calculator to see how much interest you can earn. Rates change depending on the bank, while a few give compounded rates for specific currencies.
On maturity, you may reinvest in another term, transfer proceeds to NRE/NRO, or repatriate overseas.
Most banks don’t pay interest if you close your FCNR fixed deposits before one year. Depending on the maturity period, if you withdraw prematurely after one year, your bank may impose a penalty. This penalty information will be available at the time of opening FCNR fixed deposit.
Common Mistakes to Avoid
Some of the common mistakes to avoid with FCNR fixed deposits are:
FCNR fixed deposit booking in a currency that doesn’t match your earnings or future spending.
Ignoring the difference in interest calculation- simple vs compounding for different currencies/tenures.
Relying on a generic FD calculator when that may not allow for FCNR deposits-always use FCNR-specific calculators or spreadsheets.
FCNR Fixed Deposit Rates in India: A Comparison
The prices Indian banks charge on such deposits, as well as the factors that determine the ultimate returns, are important to know before an FCNR fixed deposit is booked. Indian FCNR rates are in line with RBI regulations and although the regulations are similar across various parts of the country, individual banking institutions have various interest tags based on the currency, ten-year and internal policies.
In comparing rates of FCNR fixed deposit of Indian banks, review:
RBI interest-rate limit on FCNR(B) deposits: The banks cannot go above the limit that is attached to the Overnight ARR with a given spread. The interest given on deposits is fixed by law.
Interest payment rate: most banks charge interest on a 180-day basis or at maturity, depending on currency and tenure. Remuneration of the employees shall be conducted by the bank in accordance with the provisions of the B-2-C Agreement.
Minimum deposit amount: This is set by each Indian bank and varies depending on the currency being USD, GBP, or EUR.
Premature withdrawal regulations: FCNR deposits that are closed before the one-year period are not subject to interest according to the rules set by RBI. The methods by which organisations utilise the information are mainly influenced by the information environment, enabling them to gain advantages through the utilisation of information assets.
Indian eligible currencies: FCNR deposits may be opened in freely convertible currencies, including USD, GBP, EUR, AUD, CAD and JPY, where the bank has this facility. As a result, this causes the nation to lose its accountability and authority regarding the management of financial affairs and lending processes.
Taxation: FCNR(B) deposit interest is not taxed in India, provided the depositor is still under the NRI/RNOR status. The amount of money retained in foreign accounts is determined by the customer's nationality and the type of account used for utilising the bank accounts.
Repatriation rights: Repatriation rights are principal repatriable and interest repatriable at maturity overseas. The second one represents a more detailed variation of the first and is commonly employed when the bank desires greater control over the depositor.
This is a systematic comparison that would assist NRIs to choose a bank that does not just provide favourable FCNR fixed deposit rates but also facilitates easy repatriation, reduction in returns and clear adherence to Indian laws.
Conclusion
Booking FCNR fixed deposits is one of the easiest ways for NRIs to protect foreign earnings from exchange rate risk while earning steady, tax-free returns in their preferred currency. It ensures a perfect combination of stability, repatriation flexibility, and access to funds anywhere in the world. FCNR deposits are a strong addition to any NRI's savings plan.
Frequently Asked Questions
Can I book an FCNR fixed deposit if I reside in the UK or the USA?
Yes, if you're an NRI living overseas, you can set up FCNR term deposits in foreign currency using services such as Rupeeflo and transfer money through approved channels.
Do FCNR deposit rates stay the same throughout the entire period?
Once you book the FCNR fixed deposit, the rate stays set for your selected period. However, it depends on the currency and the bank chosen.
Can I transfer funds from FCNR fixed deposits to an NRE or NRO account?
Yes, you can transfer funds from your FCNR fixed deposits with interest to an NRE or NRO account at maturity. If you choose to withdraw to an NRE or NRO account, the foreign currency will be held in INR, and exchange rates will apply.
Can I open an FCNR deposit jointly?
Yes, you can open an FCNR fixed deposit jointly with two or more NRIs. With a resident relative, it can be operated on a former or survivor basis.
