FCNR(B) Rates Rise: What NRI Deposits Earn in 2025?
Indian banks like SBI, HDFC, ICICI and others have raised interest rates on FCNR(B) deposits for NRIs. The government is also covering hedging costs on 3–5 year deposits, making these accounts more attractive than before.
A $10,000 FCNR deposit at 6% earns more than ₹50,000/year — tax-free in India
Your foreign currency savings can now earn this much in Indian banks
Key Takeaways
Compare FCNR(B) rates across SBI, HDFC Bank, ICICI Bank, PNB, and Central Bank of India before opening or renewing a deposit.
Check if your deposit tenure qualifies for the government's hedging cost support — currently applicable on 3 to 5 year fresh deposits only.
Consult a tax advisor to confirm your FCNR(B) interest remains tax-exempt in India as long as you maintain valid NRI status under FEMA rules.
Indian banks like SBI, HDFC, ICICI and others have raised interest rates on FCNR(B) deposits for NRIs. The government is also covering hedging costs on 3–5 year deposits, making these accounts more attractive than before.
Here's what happened: Multiple major Indian banks including SBI, HDFC Bank, ICICI Bank and PNB have revised upward their FCNR(B) deposit interest rates in 2025.. The Indian government announced it will cover hedging costs on new 3 to 5 year FCNR(B) deposits, reducing the effective cost for NRI depositors.. Central Bank of India is currently offering up to 6% per annum on eligible FCNR(B) deposits, one of the higher rates in the market right now..
What you should do: Compare FCNR(B) rates across SBI, HDFC Bank, ICICI Bank, PNB, and Central Bank of India before opening or renewing a deposit.. Check if your deposit tenure qualifies for the government's hedging cost support — currently applicable on 3 to 5 year fresh deposits only.. Consult a tax advisor to confirm your FCNR(B) interest remains tax-exempt in India as long as you maintain valid NRI status under FEMA rules..
FCNR(B) interest is fully exempt from Indian income tax as long as you are a non-resident. Even after returning to India, the exemption continues for up to 2 more years — most NRIs miss this window.
Compare NRI Deposit Rates
Open GoCredit App →References
- [1]“Latest FCNR interest rates: HDFC Bank, SBI, ICICI Bank, PNB, Central Bank of India and more” Wealth-Economic Times · 10 Jun 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.