Bank FCNR Deposit Rates; Several big Indian banks have lowered their FCNR (B) deposit rates from September 1, 2026. The change came after a special government support for hedging costs ended earlier than first planned on August 31.
The higher rates had been offered mainly on 3 to 5-year deposits. Banks had pushed rates as high as 6% to 6.5% to attract more US dollar deposits. The response was stronger than expected, leading the government to end the special support sooner. FCNR (B) deposits are foreign-currency deposits meant for eligible non-resident customers.
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HDFC Bank
- HDFC Bank had earlier offered up to 6.25% on 3 to 5-year FCNR (B) deposits. From September 1, the rate is 3.50% for 3 to 4 years and 3.15% for 4 to 5 years.
ICICI Bank
- ICICI Bank has also made a big cut. Its rate has come down from 6.25% to 3.25% for deposits in the 3 to 5-year range.
SBI
- SBI has reduced its earlier rates as well. It had offered up to 6% on 5-year deposits above $1 million and 5.75% on deposits up to $1 million.
- The new rates are 3.35% for 3 to 4 years, 2.95% for 4 to 5 years and 3.05% for 5-year deposits.
PNB
- Punjab National Bank has lowered its 5-year rate from 6.50% to 3.06% for deposits below $1 million.
- For 3 to 4-year deposits, its rate has moved from 6.40% to 3.25%.
Axis Bank
- Axis Bank’s rate for 3 to 4-year deposits below $1 million has fallen from 6.25% to 3.25%.
- For deposits with a 4 to 5-year maturity, the new rate is 2.95%.
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Kotak Mahindra Bank
- Kotak Mahindra Bank had earlier offered 6.30% on 5-year deposits above $0.5 million.
- It now offers 3.40% for 3 to 4 years, 3.20% for 4 to 5 years and 3% for 5 years.
FCNR (B) accounts allow NRIs and other eligible non-resident customers to keep fixed deposits in foreign currency. They can get interest without Indian income tax on the interest under the applicable rules. The deposits are also designed to allow repatriation and reduce the effect of rupee exchange-rate changes. RBI rules govern FCNR (B) deposits and the interest rates banks can offer
