FCNR (Foreign Currency Non-Resident) fixed deposits let NRIs park USD, GBP, EUR, AUD, CAD or JPY in India — interest paid in same currency, tax-free in India, no INR depreciation risk on principal. Below: current rates across the 5 banks with widest FCNR offering, plus the GIFT City IBU alternative that pays 50-75 bps more.
Current FCNR rates · October 2026
| Bank | USD (1 yr) | USD (3 yr) | USD (5 yr) | GBP (3 yr) | EUR (3 yr) |
|---|---|---|---|---|---|
| IDFC First | 4.50% | 4.25% | 4.75% | — | — |
| SBI | 4.40% | 3.35% | 3.05% | 3.95% | 1.50% |
| Kotak | 3.65% | 3.30% | 3.00% | 3.20% | 1.75% |
| HDFC | 3.35% | 3.35% | 3.10% | 3.00% | 1.40% |
| ICICI | — | — | — | — | — |
Each row is taken from that bank’s own FCNR rate card, checked 7 October 2026 (SBI 7 Oct; IDFC First, Kotak and HDFC 1 Oct). SBI’s USD figures are the below-$375,000 band — larger deposits earn more. ICICI publishes FCNR rates only behind its own rate widget, so we show no figure rather than a guess. Confirm on the bank’s NRI page before opening. Minimum deposit typically $1,000 / £1,000 / €1,000. Tenors 1-5 years only (FCNR is NOT a savings account).
GIFT City IBU FDs — the +50-75 bps alternative
IFSC Banking Units (IBUs) at GIFT City — operated by HDFC, ICICI, Kotak, SBI, Yes, Axis among others — pay 50-75 basis points more than equivalent FCNR rates, in the same currencies, also tax-free for NRIs. The catch: minimum is typically $5,000-25,000 (higher than FCNR) and the deposit is held at the IBU branch, not your home-branch.
- IDFC First IBU USD 3 yr: roughly FCNR + 50-75 bps (its FCNR 3 yr is 4.25%)
- HDFC IBU USD 3 yr: roughly FCNR + 50-75 bps (its FCNR 3 yr is 3.35%)
- ICICI IBU USD 3 yr: roughly FCNR + 50-75 bps — confirm both with the bank
- Liquidity, tax treatment, repatriation: same as FCNR — fully repatriable, tax-free in India
For $50K+ idle USD, GIFT City IBU is almost always the better pick. Full GIFT City vs FCNR comparison →
What it costs to open
- Minimum: typically $1,000 / £1,000 / €1,000 / AED 5,000
- FX conversion (if funding from rupees): banks charge 0.3-0.6% spread — not common, most fund directly from foreign account
- Wire-in fee: usually waived if funding via NRE; SWIFT charge if from foreign bank
- Early withdrawal penalty: ~1% of principal if breaking before 1 year minimum