FCNR Term Deposits are an investment option for NRIs who prefer to hold their deposit in a foreign currency of their choice and with interest payment also in the same currency. FCNR deposit insulates the depositors from risks relating to currency conversion and foreign currency exchange rates. Returns on FCNR deposits are higher than those offered by similar products abroad.
- FCNR deposit can be opened in the following currencies USD, GBP, EUR, JPY, AUD and CAD.
- Flexible deposit tenor ranging from 1 to 5 years.
- Interest earned is not taxable in India.
- Loans against FCNR deposit are available.
- Option of forward contract against FCNR deposit is available for NRIs who prefer to take the FCNR maturity proceeds in INR (Forward contract is a process to fix conversion rate in advance at the time of creating a deposit to take the maturity to proceed in INR. It will safeguard against rate fluctuation and a combination of interest rate & premium on the rates will give high ROI).
- Rates are subject to change, without prior notice.
- No interest is payable if the deposit is withdrawn before one year.
- Any pre-closure after completion of one year will be applicable to pre-closure penalty norms.
The revised interest rates for the period from 01/01/2019 To 31/01/2019 in respect of FCNR term deposits are as below:
|1 Year & above but less than 2 Years||4.01||1.76||0.79||0.78||3.04||2.48|
|2 Years & above but less than 3 Years||3.77||1.92||0.84||0.78||2.75||2.44|
|3 Years & above but less than 4 Years||4.00||1.73||0.94||0.77||3.00||2.70|
|4 Years & above but less than 5 Years||3.83||1.79||1.06||0.77||3.02||2.92|
|5 Years only||3.86||1.83||1.21||0.78||3.05||3.00|