Foreign Currency Non-Resident (Bank) or FCNR(B) accounts have emerged as popular fixed deposit options for non-resident Indians and overseas citizens of India. According to reports from Zee News, banks have increased interest rates on FCNR(B) deposits, enabling investors to achieve significant returns. These accounts allow deposits to be held in foreign denomination and are offered by several banks across India.
IDFC FIRST Bank leads the market with the highest FCNR(B) interest rate of 6.75% on deposits from 3 to 5 years. As reported by Zee News, the rates became effective from June 16, 2026. HDFC Bank and ICICI Bank both offer 6.25% on tenures from 3 to 5 years, with HDFC's rates effective from August 1, 2026 and ICICI's from August 4, 2026. Axis Bank provides 6% on the same tenure range, effective from August 3, 2026.
State Bank of India (SBI) offers 5.75% for deposits up to USD 1 million and 6.00% for amounts above USD 1 million on 5-year tenures. According to Zee News, PNB provides 6.50% on 5-year deposits, effective from August 1, 2026. Bank of Baroda offers 6.50% on deposits from 4 to 5 years, while Indian Bank provides the same rate for deposits up to USD 1 million on 5-year tenures.
Canara Bank follows a tiered approach with 5.70% for 3-year deposits, 5.75% for 4-year deposits, and 5.80% for 5-year deposits. As reported by Zee News, Indian Overseas Bank offers 6.50% on deposits from 3 to 5 years, effective from June 15, 2026. The comprehensive offerings across these 10 banks provide NRIs with multiple options to optimize their foreign currency investments.
