SBI's 7.5% Forex Deposit: Is Your Dollar Safe?

SBI is offering up to 7.5% interest on foreign currency deposits under an RBI-backed scheme. If you or your family have dollars or foreign currency savings, this could be a rare high-return option worth exploring.

Here's what happened: SBI attracted over $1.5 billion in foreign currency deposits under a special RBI-supported deposit programme offering elevated returns.. The RBI is subsidising the scheme to attract foreign exchange into India, allowing banks to offer depositors unusually high rates near 7.5%.. These Foreign Currency Non-Resident (FCNR-B) deposits are available to NRIs and people with foreign currency holdings, with tenure-linked interest rates..

What you should do: Check with SBI or your bank whether you qualify for FCNR-B deposits — NRIs and returning Indians with foreign currency are eligible.. Compare the 7.5% FCNR-B rate against domestic FD rates and NRE fixed deposits before deciding where to park your foreign currency savings.. Ask your bank about the currency and tenure options — FCNR-B deposits are available in USD, GBP, EUR and others, typically for 1–5 years..

FCNR-B deposits are fully repatriable and the interest earned is tax-free in India for NRIs — making the effective yield even better than the headline 7.5%.