💵 FCNR Account · Foreign Currency Non-Resident

The FCNR account — keep savings in your currency

Updated May 2026

A fixed deposit held in foreign currency — USD, GBP, EUR, AUD, CAD, JPY. No rupee conversion risk on your principal. Ideal for parking savings you don't need for 1–5 years.

How FCNR actually works

Available in USD, GBP, EUR, AUD, CAD, JPY
Interest paid in same currency, tax-free in India
Fixed tenures: 1–5 years only (not a current account)
Good for large lump sums you won't touch
Minimum to open: typically $1,000 USD or equivalent (£1,000 / €1,000 / AED 5,000)

Same currency, ~50–75 bps higher: GIFT City IBU FDs

USD FDs at GIFT City IFSC Banking Units (HDFC, ICICI, Kotak, SBI all run IBUs) typically pay 50–75 basis points more than equivalent FCNR. Compare GIFT City IBU vs FCNR →

Timing: open FCNR BEFORE you move back permanently

FCNR requires NRI status under FEMA. Once you're back permanently, you cannot open new FCNRs — only let existing ones run to maturity. Practical move for returnees: open 2–3 year FCNRs roughly 3 months before your move-back, laddered so something matures each year. You'll keep earning USD-denominated India-tax-free interest for years after you've landed in India. Bank practices vary at maturity post-relocation — some auto-convert to RFC, some let you renew with NRI declarations. Ask your bank specifically before opening.

Best for FCNR: IDFC First Bank — highest rates, up to 5.10% p.a. on USD Open IDFC FCNR →

The FCNR account — keep savings in your currency

How FCNR actually works

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