Friday, October 25, 2013

FCNR Deposit Interest Rates USD - ICICI vs SBI vs HDFC vs Kotak vs Axis Bank

FCNR term deposit is very hot at the moment. As I said in my last post it Right time to invest in FCNR deposit, it's the perfect time to get much better interest rates on foreign currency in India than abroad. If you consider USD interest rates, then Indian banks are offering up to 5.53% interest rates for five years deposit, this looks awesome.


No wonder, many NRI are opening NRE accounts to hold FCNR term deposit. This increase in interest rates is mainly to save sliding rupee from further slowdown. In an effort to improve rupee's value, RBI allowed Indian bank to offer better FCNR rates and increased competition among them to lure Non Resident Indian. Not only interest rates but also interest earned on FCNR deposit is tax-free in India. So if you want to keep your money in USD, and expecting appreciation in exchange rate along with high-interest rate than FCNR fixed deposit are best for you.




FCNR Deposit Interest Rates Comparison between SBI, ICICI, HDFC, Kotak and Axis bank

In an effort to provide overview and comparison of FCNR deposit rates among top five Indian banks, which also offers NRI banking facilities, here are interest rates from SBI, ICICI, HDFC, Kotak Mahindra and Axis bank. I think it's still prefer to open FCNR term deposit to the bank, where you already have NRE account, but if you find significant different than you can always go for opening a new NRE account on that bank.




Looks like ICICI, HDFC and Axis banks are providing best FCNR deposit rates. They also tend to have better customer care services than public sector bank, which is more important in the case of NRI investor. HDFC banks also allow you to open FCNR term deposit in USD from your INR saved in NRE account though this will require reverse conversion and depends on the exchange rate at that moment. Overall, I think it's the best time to invest in FCNR term deposit if you want to keep your fund on foreign currency on which you are earning e.g. USD, JPY, CAD or GBY.


Interest rates vary very quickly, so if you are going to invest money on FCNR fixed deposit then it's always better to check current rates from Bank website itself. Here are some direct links to check FCNR interest rates from bank

SBI Bank FCNR Interest Rates
https://www.sbi.co.in/user.htm?action=viewsection_opennew2&lang=0&id=0,16,387,388


ICICI Bank FCNR term deposit Interest Rates for USD and other currencies
http://www.icicibank.com/nri-banking/RHStemp/rates.html#T-5

HDFC Bank FCNR deposit Interest rates for US dollars, pound and others
http://www.hdfcbank.com/nri_banking/accounts/fcnr_deposits/fcnr_deposits.htm


Axis bank FCNR fixed deposit Interest rates
http://www.axisbank.com/download/Interest-Rates-on-NRI-Deposits.pdf

Kotak Mahindra Bank FCNR deposit rates for USD
http://nri.kotak.com/interest-rates.html

5 comments:

  1. All Indian banks are offering very attractive interest rates on FCNR term deposit. If you want to invest in India and also wants to keep money in foreign currency than FCNR fixed deposit are best investment option. In this post, I have compared FCNR term deposit interest rates for USD for 1 to 5 years period for quick comparison, looks like top 5 banks SBI, ICICI, HDFC, Axis and Kotak Mahindra are offering very similar rates, but HDFC looks better overall.

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  2. In short, which bank is offering best FCNR deposit rates in India? Apart from these big 5, which may not provide best rates, may be any public sector or small bank like Karur Vyasya?

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  3. I think how often the interest is compounded and the restrictions and penalties also vary from bank to bank. Can you please add that information also?

    Thanks!

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  4. How do I choose between NRE and FCNR or should we have both for optimum usage?
    if yes, where should more moeny lie in the ratio of 1 to 10?

    THANKS

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    Replies
    1. Hello @Anonymous, the choice is straightforward, if you want to keep your money in foreign currency then keep it on FCNR deposit and if you want to keep it on Indian rupees then keep it on NRE fixed deposit. Regarding ratio, it depends upon your need and future plan. If you want to remain overseas then put 70% money in FCNR but if you want to come back India, put 70% money on NRE account. ?You can adjust percentage based upon your requirement.

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