FCNR(B) FD Rates Hit 6.50%: Which Bank Wins?

NRIs can now earn up to 6.50% on FCNR(B) fixed deposits in foreign currency. Punjab National Bank currently leads the pack for 5-year tenures, with HDFC Bank and ICICI Bank also offering competitive rates. Here's what NRI families in India need to know.

Here's what happened: FCNR(B) FD interest rates for 3-to-5-year tenures have risen, with Punjab National Bank offering up to 6.50% per annum on select 5-year USD deposits.. HDFC Bank and ICICI Bank are also offering attractive rates for longer-tenure FCNR(B) deposits, making this a competitive window for NRI savers.. FCNR(B) deposits allow NRIs to park foreign currency in Indian banks without bearing rupee depreciation risk, with full repatriation allowed on maturity..

What you should do: Compare FCNR(B) rates across at least 3 banks — PNB, HDFC Bank, and ICICI Bank — for your preferred currency (USD, GBP, EUR) before booking.. Check the exact tenure offering the highest rate at each bank, since rates can vary sharply between 3-year and 5-year deposits at the same institution.. Confirm your NRI status and KYC documents are updated with your bank, as lapsed KYC can delay or block FCNR(B) account opening or renewal..

FCNR(B) interest is completely tax-free in India — no TDS is deducted. NRIs don't need to declare this in their Indian ITR, making it one of the most tax-efficient deposit options available.