If you are an NRI looking to hold foreign earnings in India via an FCNR account, compare rate cards across a few banks and choose a tenure that fits your repatriation plans. The deposit is held and repaid in foreign currency, so there is no need to convert your money into rupees.
Why NRIs should choose a foreign currency deposit account
An FCNR account allows non-resident Indians to hold fixed deposits in foreign currencies like USD, GBP, EUR, AUD, etc., rather than converting earnings into rupees. Holding funds this way protects your savings from exchange rate fluctuation while still earning interest in India. The principal and interest stays fully repatriable, so you retain complete flexibility over how and when you move funds internationally. Among the available FCNR deposit currencies, many customers prefer the US Dollar given its status as the world’s primary reserve currency, deep liquidity, widespread global acceptance, and ease of convertibility across international markets.
What controls your FCNR account interest earnings
- Currency chosen for the deposit
- Tenure selected, usually ranging from one to five years
- The bank’s prevailing rate card at the time of booking
- Global interest rate benchmarks, since FCNR rates move with international trends rather than domestic ones
- Timing of your application, as banks revise rate cards periodically based on shifts in global rates
Comparing rates across a few tenure options can help you identify the combination that suits your repatriation timeline and return expectations.
Who can open an FCNR deposit account
The following are eligible to open an FCNR account with IDFC FIRST Bank:
- NRIs, and OCIs(including eligible Persons of Indian Origin, where applicable)
How you can apply for an FCNR deposit account
IDFC FIRST Bank offers two ways to apply for an FCNR deposit account:
- If you are an existing customer:
- Login to IDFC FIRST Bank Mobile Banking Application & book FCNR deposit digitally or write to your relationship manager from your registered email ID to request the deposit.
- Book the deposit in person at your nearest branch, if you happen to be in India.
- If you are a new customer:
- Select ‘Open Account’ and enter your email address and mobile number to get started.
- Complete your personal details and submit certified KYC documents, along with a photograph and signature.
- Once the bank verifies your documents, your FCNR deposit can be opened.
Getting the highest returns from your FCNR deposit account
A few practical steps can help you secure better outcomes when you open an FCNR account:
- Compare rate cards across different banks and tenure options before committing.
- Choose a currency that matches your future spending or repatriation plans.
- Consider laddering deposits across different tenures for flexibility.
- Check the latest rate card before booking, since FCNR deposit rates can change with global benchmarks.
Ensure your KYC is updated
Interest earned is compounded on a half-yearly basis and credited in the same foreign currency and stays exempt from Indian income tax as long as you retain NRI status. Premature withdrawal usually attracts a lower rate than the contracted one, so align the tenure with your repatriation needs before committing funds. Some banks like IDFC FIRST Bank do not levy any premature penalty on FCNR deposits.
FCNR Plus: A Limited-Period Opportunity for USD FCNR Deposits
For customers looking to lock in attractive US Dollar returns, IDFC FIRST Bank offers FCNR Plus, a special USD FCNR Deposit available under the RBI’s limited-period FCNR Swap Scheme. The deposit offers an interest rate of 6.75% p.a. on tenures ranging from 3 to 5 years*, with a minimum lock-in period of 1 year.
In addition to attractive returns, customers benefit from key FCNR advantages, including tax-free interest in India, protection from INR currency fluctuations, and full return of both principal and interest.
Further enhancing customer convenience, IDFC FIRST Bank is among the few banks in India to offer a fully digital FCNR deposit booking journey, enabling eligible customers to seamlessly create an FCNR deposit online through debit to their NRE Savings Account, without the need for branch visits or physical documentation.
Bookings under the FCNR Plus offering are available only until 30 September 2026
*The rate is as on 16 June 2026 and may be revised from time to time at the Bank’s sole discretion.
Conclusion
Holding foreign earnings in a foreign currency deposit is a practical way for NRIs to protect income from currency risk while earning a defined return. Existing customers can apply digitally or through their relationship manager or nearest branch giving them the much required flexibility, while new customers can create after opening an NRI Account.
Comparing rate cards across banks, choosing the right tenure, and keeping documentation current are the key factors that help you make the most of your foreign currency savings over time.