HDFC Bank, ICICI Bank hike FCNR rates — Check here for how much interest depositors now get

India’s largest private sector lenders HDFC Bank and ICICI Bank have both hiked their Foreign Currency Non-Resident (Bank) interest rates for fixed deposits this month, disclosures on their websites showed.

FCNR FD interest rates are the rates of return banks offer on tenured deposits held in foreign currencies by Non-Resident Indians (NRIs) and allow them to invest their foreign earnings in India without worrying about exchange rate fluctuations. 

Increase in interest rates: How do customers benefit?

The moves come after the Centre reduced hedging costs for few FCNR (B) deposits, allowing banks to pass some relief to customers. The Reserve Bank of India (RBI) in June said that hedging costs on three-to-five-year FCNR (B) deposits will be borne by the government till 30 September this year.

As such, HDFC Bank and ICICI Bank have each reduced interest rates for FCNR (B) for those particular tenures by 25 basis points (0.25%). This is good news for NRIs looking to invest in bank FDs to earn tax-free interest.

Here’s how much FCNR (B) interest NRI depositors get:

HDFC Bank: India’s largest private sector lender, HDFC Bank, is giving 6.25% interest rate on FCNR (B) deposits for tenures ranging from 3 years to less than 4 years, 4 years to less than 5 years, and 5 years only.

Notably, the bank in a note on its website added that FCNR deposits booked for 3 to 5 years tenure will have a lock-in period of one year. This will be applicable to deposit booked between 10 June 2026 to 30 September 2026.

For customers booking their FCNR deposit through netbanking, the website added that such requests are processed within two working days, except on Saturdays, Sundays, public holidays in India and international currency holidays. “The actual interest rate and forex rate being applied will be the one which is prevailing at the time of processing the deposit and not at the time of receiving the request,” it stated.

HDFC Bank — Check FCNR (B) fixed deposit interest rates across tenures below:

ICICI Bank: India’s second largest private sector lender, ICICI Bank, is giving 6.25% interest rate on FCNR (B) deposits of ₹4 lakh and above for tenures as follows: More than 36 months (three years) to less than 48 months (four years), More than 48 months to less than 60 months (five years), and 60 months.

Notably, the bank on its website noted that for premature withdrawal of FCNR (B) deposit tenor of 12 months to less than 36 months, no interest will be payable, and no penalty will be levied. However, after completion of 12 months, on premature withdrawal of the deposit, interest shall be paid at the rate applicable, on the date of deposit booking, for the amount and period for which the deposit remained with the bank and no penalty will be levied.

Further, FCNR (B) deposit with original tenor of more than 36 months to less than 60 months (3-5 years) are subject to a lock-in period of 12 months (one year). “If such deposit is prematurely withdrawn after completion of the lock-in period, including partial withdrawal, interest shall be paid at the rate applicable, on the date of deposit booking, for the amount and period for which the deposit remained with the bank, after deducting 1% penalty,”

ICICI Bank — Check FCNR (B) fixed deposit interest rates across tenures below:

Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.