Investment & Financial Planning

FCNR Deposit Interest Rates in 2026

Hatim Dudhiyawala
Written by Hatim Dudhiyawala
Updated on: June 23, 202616 mins Editorial Standards
FCNR Account FD Rate Comparison List Bank Wise For 2026

FCNR is a great option for NRIs planning to have an investment in India. This is so because the interest earned on these bank accounts is exempt from income tax in India. Also, FCNR accounts in India offer a much higher interest rate than in other countries. 

In this blog, we will explore the FCNR deposit interest rates in 2026 for all currencies across different banks in India.

Key Takeaways
  • Yes Bank leads the market with the highest FCNR rates across the most currencies for a 1-year deposit. 
  • For AUD deposits, Indusind Bank offers a 1-year deposit rate of 4.80%, while HDFC Bank is the only bank quoting competitive AUD rates for up to 5 years. 
  • NRIs committing to a long-term tenure for USD deposits (4-5 years) may find IDFC First Bank's 4.40% rate the strongest value in the market. 
  • Gulf-based NRIs generally benefit the most from FCNR deposits, as interest in India is tax-free and there is no income tax applicable in their country of residence, making the return truly tax-free end-to-end. 
  • Ensure that the banks may change the interest rate at any time without prior notice. Verify the latest rates on the bank's official website. 

Top Interest Rates On FCNR Accounts

The following is a list of banks that provide the best interest rates on FCNR Accounts.

1. Yes Bank FCNR Rates

Yes Bank provides a wide range of financial services for NRIs. Their highest interest rate is 5.15% on FCNRs denominated in US dollars, with a tenure of two years or less. 

Tenure

HKD

SGD

AUD

CAD

JPY

EURO

GBP

USD

1 year to less than 2 years

3.00%

4.05%

4.75%

4.60%

1.90%

4.10%

5.65%

6.10%

2 years to less than 3 years

3.00%

3.75%

4.50%

4.60%

1.95%

3.65%

5.00%

5.15%

3 years to less than 4 years

1.35%

3.60%

4.30%

3.30%

1.95%

2.55%

4.25%

4.80%

4 years to less than 5 years 

1.35%

1.40%

4.30%

3.10%

0.05%

2.00%

4.00%

4.75%

5 years

1.35%

1.40%

4.30%

3.00%

1.95%

2.00%

4.00%

4.70%

Please Note: YES Bank may change the interest rate at any time without prior notice. Please verify the latest YES Bank FCNR rates on the official YES Bank website. 

2. RBL Bank FCNR Rates

RBL Bank offers FCNR accounts in all major currencies worldwide. The interest on these FCNR deposits is paid half-yearly and automatically renewed. They offer a high interest rate of 4.85% on US dollar deposits. 

Period

USD

GBP

EUR

AUD

SGD

JPY

CAD

CHF

1 year and above but less than 2 years. 

4.85%

4.00%

3.00%

3.50%

2.00%

0.05%

2.75%

0.05%

2 years and above but less than 3 years

4.25%

4.20%

2.50%

3.50%

1.50%

0.05%

2.50%

0.05%

3 years and above but less than 4 years

4.25%

4.00%

2.50%

2.85%

0.80%

0.06%

2.25%

0.05%

4 years and above but less than 5 years

4.25%

3.00%

2.00%

2.75%

0.80%

0.06%

2.00%

0.05%

5 years

4.40%

3.00%

2.00%

2.60%

0.80%

0.06%

2.00%

0.05%

3. IDBI Bank FCNR Rates

IDBI is a reputable bank in India that offers FCNR facilities in major foreign currencies. Their USD deposits pay 3.5% for five years, and the GBP deposits pay 3.00%. 

Maturity Slab

USD up to 1 million

GBP

EUR

AUD

CAD

JPY

SGD

HKD

CHF

1 year to less than 1 year.

4.75%

4.250%

2.65%

3.75%

2.90%

0.40%

2.10%

0.50% 

NA

2 years to less than 3 years

3.90%

3.60%

2.20%

3.00%

2.30%

NA

1.60%

0.50%

NA

3 years to 4 years

3.55%

3.20%

1.95%

2.60%

1.90%

NA

1.00%

0.50%

NA

4 years to less than 5 years

3.35%

3.00%

1.75%

2.400%

1.75%

NA

0.45%

0.50%

NA

5 years only

3.35%

3.00%

1.75%

2.25%

1.75%

NA

0.45%

0.50%

NA

4: Indusind Bank FCNR Rates 2026 

The tiered USD structure for high-net-worth NRIs. Best AUD rate in the market at 4.80% for 1 year. The rates effective from 5th May 2026. 

Tenure

USD < $1 Mio

USD $1–10 Mio

USD $10–25 Mio

USD ≥ $25 Mio

GBP

EUR

JPY

CAD

AUD

1 Year to < 2 Years

4.50%

4.60%

4.60%

4.60%

4.40%

2.60%

0.01%

2.65%

4.80%

2 Years to < 3 Years

3.90%

3.90%

3.90%

3.90%

4.40%

0.01%

0.01%

0.01%

0.01%

3 Years to < 4 Years

3.70%

3.70%

3.70%

3.70%

4.30%

0.01%

0.01%

0.01%

0.01%

4 Years to < 5 Years

3.60%

3.60%

3.60%

3.60%

4.25%

0.01%

0.01%

0.01%

0.01%

5 Years

3.60%

3.60%

3.60%

3.60%

4.25%

0.01%

0.01%

0.01%

0.01%

The premature withdrawals: No interest if the deposit is broken before 1 year. After 1 year, the applicable rate is 0.25%. 

Best For: Australia-based NRIs (best AUD rate at 4.80%), HNI USD deposits above $1 million, and UK-based NRIs wanting a strong GBP rate across all tenures.

5: ICICI Bank FCNR Rates 2026

The most widely used NRI is a bank globally. ICICI has one of the best digital banking experiences in the industry. Accepts the USD, GBP, AUD, CAD, and SGD. 

Tenure

USD (< $1M)

USD ($1M–$2.5M)

USD (≥ $2.5M)

GBP

AUD

CAD

SGD

12 Months to < 24 Months

3.85%

4.00%

3.85%

4.10%

4.35%

2.35%

1.25%

24 Months to < 36 Months

3.35%

3.35%

3.35%

3.85%

4.20%

2.45%

1.20%

36 Months to < 48 Months

3.00%

3.00%

3.00%

—

—

—

—

48 Months to < 60 Months

2.90%

2.90%

2.90%

—

—

—

—

60 Months

2.90%

2.90%

2.90%

—

—

—

—

Note: The GBP, AUD, CAD, and SGD are available for tenures up to 36 months only. Beyond the three years, only USD is accepted. 

Best For: NRIs who prioritize seamless digital banking, video KYC convenience, and credible global NRI service. 

6: State Bank of India (SBI) FCNR Rates 2026

SBI is India's largest and most trusted bank. The bank has government-backed safety. Rates are effective from January 15, 2026. 

Tenure

USD

GBP

EUR

CAD

AUD

JPY

1 Year

4.40%

4.00%

2.75%

2.97%

3.75%

0.40%

Above 1 Year to < 2 Years

4.40%

4.00%

2.75%

2.97%

3.75%

0.40%

2 Years to < 3 Years

3.55%

3.95%

1.25%

2.72%

3.65%

0.40%

3 Years to < 4 Years

3.35%

3.00%

1.25%

2.47%

3.55%

0.40%

4 Years to < 5 Years

2.95%

2.90%

1.25%

2.52%

3.45%

0.30%

5 Years

3.05%

2.80%

1.25%

2.57%

3.35%

0.30%

Best For: SBI is an ideal pick for conservative investors who prioritize government-backed safety above all else. AUD holders across any tenure. Further, for UK-based NRIs, locking in a 2-year GBP-denominated at 3.95%. 

7: Axis Bank FCNR Rates 2026

Axis is one of India's leading private sector banks with a credible NRI banking platform. Clean and straightforward rate card covering all seven major currencies, with no deposit-size tiering complexity. The rates are effective from 2nd March 2026. 

Tenure

USD (Below $1 Million)

USD ($1 Million & Above)

GBP

EUR

AUD

CAD

JPY

1 Year to < 2 Years

4.00%

4.00%

4.10%

1.65%

3.75%

2.30%

0.01%

2 Years to < 3 Years

3.50%

3.50%

3.65%

0.01%

3.60%

2.20%

0.01%

3 Years to < 4 Years

3.25%

3.25%

0.01%

0.01%

3.15%

2.10%

0.01%

4 Years to < 5 Years

2.95%

2.95%

0.01%

0.01%

3.15%

1.95%

0.01%

5 Years

2.95%

2.95%

0.01%

0.01%

2.95%

1.75%

0.01%

Key Observations

  • The USD Rate of 4.00% is uniform across deposit sizes, with no tiering complexity. 
  • A 4.10% 1-year GBP rate is competitive among private-sector banks. 
  • GBP and EUR are quoted meaningfully for 1- and 2-year tenures; beyond 2 years, only USD, AUD, and CAD remain viable. 

Best For: NRIs seeking a simple, uncomplicated FCNR account with a trusted large private bank. That aside, it is also suitable for AUD holders who prefer the Axis Bank's established NRI platform. 

8: Kotak Mahindra Bank FCNR Rates 2026

The competitive FCNR rates with a specialty string AUD offering across multiple tenures. The rates are effective from June 1, 2026, covering the USD, GBP, EUR, AUD, and SGD. 

Tenure

USD (Below $1 Million)

USD ($1 Million & Above)

GBP

EUR

AUD

CAD

JPY

1 Year to < 2 Years

4.00%

4.00%

4.10%

1.65%

3.75%

2.30%

0.01%

2 Years to < 3 Years

3.50%

3.50%

3.65%

0.01%

3.60%

2.20%

0.01%

3 Years to < 4 Years

3.25%

3.25%

0.01%

0.01%

3.15%

2.10%

0.01%

4 Years to < 5 Years

2.95%

2.95%

0.01%

0.01%

3.15%

1.95%

0.01%

5 Years

2.95%

2.95%

0.01%

0.01%

2.95%

1.75%

0.01%

Key Observations: 

  • The AUD rate of 4.50% for 1 year is the second-highest in the market after Induslnd Bank's 4.80%. 
  • AUD rates remain strong across 2-year (4.20%) and 3-year (4.00%) tenors, among the best sustained AUD rate structures at any bank. 
  • GBP rate for 4.15% is for 1 year is competitive; 3.85% for the 2-year is among the best GNBP 2-year rates available. 
  • GBP, EUR, AUD, and SGD are quoted only up to 3 years; for 4- and 5-year tenures, only USD is available. 
  • A premature withdrawal penalty applies to deposits withdrawn after one year, as per the bank's uploaded schedule. 

Best For: Australia-based NRIs seeking the best sustained AUD rates for tenures of 1, 2, or 3 years. Along with this, a strong choice for UK-based NRIs wanting competitive GBP rates for up to two years. 

9: IDFC First Bank FCNR Rates 2026

A new generation of banks, such as IDFC, is growing its NRI presence in India. Strong long-term USD rates make it a standout for NRIs willing to commit to 4 or 5 years. 

The FCNR Rates- Up to $1 Million (Effective 26th Feb 2026)

Tenure

USD

GBP

EUR

AUD

SGD

1 Year to < 15 Months

4.50%

4.25%

2.55%

4.00%

1.90%

15 Months to < 2 Years

4.50%

4.00%

1.25%

3.85%

1.65%

2 Years to < 3 Years

4.25%

NA

NA

NA

NA

3 Years to < 4 Years

4.25%

NA

NA

NA

NA

4 Years to < 5 Years

4.40%

NA

NA

NA

NA

5 Years

4.40%

NA

NA

NA

NA

 

Key Observations

  • The USD rate of 4.50% for deposits below $1 million is strong and rises to 4.40% for 4- and 5-year tenures, making it one of the best long-term USD structures in the market. 
  • The GBP is available only for deposits under $1 million, up to 2 years at a competitive 4.25% for the first bracket. 
  • For deposits above $1 million, only the USD is quoted at a flat 4.00% across all tenures, simple and transparent. 

Best For: NRIs with the USD deposit below $1 million who are seeking competitive rates across both the long and short tenures. Specifically for those committed to 4 or 5 years. 

10: HDFC Bank FCNR Rates 2026

In India, HDFC is one of the most trusted and widely recognized private sector banks with a stellar global NRI presence and a reputation for servicing consistency. Their FCNR rate cards encapsulate the seven currencies and stand out for offering some of the most competitive AUD rates in the market across all the multiple tenures- making HDFC a specifically attractive choice for NRIs based in Australia.

Tenure

USD

GBP

EUR

JPY

AUD

CAD

SGD

1 Year to < 2 Years

3.95%

3.95%

2.30%

0.75%

4.50%

2.30%

1.05%

2 Years to < 3 Years

3.60%

N/A

N/A

N/A

4.00%

2.10%

N/A

3 Years to < 4 Years

3.65%

N/A

N/A

N/A

4.25%

2.50%

N/A

4 Years to < 5 Years

3.40%

N/A

N/A

N/A

4.10%

2.40%

N/A

5 Years Only

3.40%

N/A

N/A

N/A

4.10%

2.40%

N/A

The key observations on HDFC Bank FCNR Rates: 

  • AUD rate of 4.50% for 1 year matches the Kotak Bank, jointly offering the second best AUD rate in the market after the Induslnd Banks' of 4.80%. 
  • AUD rates remain reliable over long tenures: 4.25% for the 3-year term and 4.10% for the 4- and 5-year terms, making HDFC one of the best options for an Australian-based NRI seeking a longer-tenor AUD deposit with a large, stable bank. 
  • The GBP is the only available for a 1-year tenure at 3.95%, beyond 1 year. GBP, EUR, JPY, and SGD are not quoted. 
  • USD, AUD, and CAD are available across all tenures.
  • The three-year USD rate of 3.65% is a little higher than the two-year rate of 3.60%. This is a minor rate increase, which is worth noting when you're choosing your tenure. 

Best For: NRIs based in Australia seeking competitive AUD rates across multiple tenures, with the reliability and service quality of India's largest and most established private-sector banks. This is also suitable for NRIs who already maintain an HDFC NRI banking relationship and seek to consolidate their FCNR deposits with the same bank. 

Currency Wise Best FCNR Rate Pick For 2026

Currency

Best Bank

Best Rate

Tenure

USD

Yes Bank 

6.10%

1 year

USD (Long tenure)

IDFC FIRST Bank 

4.40%

4-5 years 

GBP

Yes Bank

5.65%

1 year

GBP (2 Year)

Yes Bank

5.00%

2 years

EUR

Yes Bank

4.10%

1 year

AUD (1 Year)

Induslnd Bank

4.80%

1 year

AUD (2-3 Year)

Kotak/HDFC Bank

4.20/4.25%

2-3 years

AUD ( Long Tenure)

HDFC Bank

4.10%

4-5 years

CAD

Yes Bank

4.60%

1 year

SGD

Yes Bank

4.05%

1 year

JPY

SBI

0.40%

Any

The Bottom Line

For NRIs holding foreign currency savings in India, the FCNR deposit genuinely stands out as a compelling combination that is hard to find elsewhere, offering competitive interest rates, zero currency risk, full tax exemption in India, and unrestricted repatriation. So, whether you are a Gulf-based NRI seeking a tax-efficient home for your foreign savings or a UK-based NRI with GBP to invest, you will definitely find a bank and a tenure combination that suits you in the list mentioned above. 

Henceforth, choose what best matches your currency, tenure preference, comfort with the institution, and your need for flexibility or digital access. And if you want professional assistance with this, Savetaxs can help. From analyzing the best interest rates to consulting on the one that suits your financial situation, we have you covered. 

Connect with us to serve our clients 24/7 across all time zones. 

Glossary
  • Best Judgment Assessment: The Best Assessment Judgement Performed by an Assessing Officer on the Financial Conditions of the Assesse.
  • Capital: Capital, a Financial Term Used for Business Operations, Like Bank Accounts, Stocks, Assets, Etc.
  • Capital Gain: Capital Gains, Profits on the Financial Assets at the Time of Selling.
  • Double Taxation Avoidance Agreement (DTAA): DTAA, an Agreement Signed Between the Countries to Avoid Double Taxation.
  • Direct Tax: Direct Tax, a Type of Tax Imposed on Income, Sales, or Property, Based on the Ability to Pay.
  • Advance Tax : Advance Tax is a Tax Paid in Advance, in Installments, During the Same Financial Year.
  • Annual Information Statement: Annual Information Statement Includes Taxpayers' Information, Including Securities, Interests, Dividends, and Transactions.
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Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

About Author
Hatim Dudhiyawala
Hatim Dudhiyawala Certified Public Accountant (CPA)

Hatim Dudhiyawala is a Certified Public Accountant (CPA) with SaveTaxs and specializes in Indian and NRI taxation. He advises individuals, NRIs, and businesses on income tax filing, capital gains taxation, DTAA benefits, fund repatriation, and tax compliance. With experience in cross-border tax matters, Hatim helps taxpayers understand complex regulations and make informed decisions. Through his articles, he shares practical insights to help readers stay compliant and manage their tax obligations with confidence.

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Frequently Asked Questions

Generally, it is said that the IDBI Bank offers the best FCNR rates in India.

The maximum tenure of opening an FCNR account is five years.

Yes, definitely, an NRI investing in FCNR FD is, in fact, a great decision. These FCNR investments can be considered long-term investments, just like term deposits.

Yes, you can transfer money from your NRE account to your FCNR account. You can do this through wire transfer or through personal cheques.

No, in India, interest on an FCNR fixed deposit account is not taxable.