Features of an FCNR Account
Here are some features of an FCNR Account according to the HDFC Bank website;
- FCNR Accounts are Term Deposit Accounts and not a Savings Account. Premature withdrawal is allowed by Banks but Interest is paid only post completion of 1 year.
- You can open an FCNR Account by transferring money from your existing Non-Resident External (NRE) Account.
- The interest you earn on your deposits on FCNR Accounts is tax-free, e., it is not taxable in India.
- The Principal amount of your FCNR deposit and the interest you earn thereon is fully repatriable, e., it is completely transferable.
- You can also avail an overdraft facility over your FCNR Term Deposit Account.
- Therefore, if you are looking for an option to save your money in foreign denominations, FCNR Accounts are an excellent choice.
SBI FCNR FD rates
Simple Interest is applicable to FCNR (B) deposits made by SBI clients for a year. For FCNR (B) deposits longer than one year, interest is compounded every six months.
HDFC Bank FCNR FD rates
If the FCNR Deposit is prematurely withdrawn before one year, no interest will be paid.
“There won’t be any penalties applied if you close your FCNR Fixed Deposit early.
The interest rate that will apply to deposits that are prematurely closed (all amounts) will be the lesser of: The base rate for the original/contracted tenor for which the deposit has been booked OR
The base rate applicable for the tenor for which the deposit has been in force with the Bank.”
ICICI Bank FCNR FD rates
The bank has revised its FCNR on September 13, 2022.
Canara Bank FCNR FD rates
According to the Canara Bank website, “The interest rates are applicable only for FCNR deposits of amount less than USD 1 Million (or its equivalent in other currencies). For FCNR deposit of USD 1 Million & above (or its equivalent in other currencies) please contact our branch.”
Apart from the basic eligibility of being an NRI or Person of Indian Origin (PIO), you need to furnish the following documents to open an FCNR account according to the DBS Bank website.
- A valid passport and a recent passport size colour photograph
- Address proof in India (optional)
- Address proof in your country of residence
- A copy of your Indian PAN card or Form 60
- Proof of NRI status – Employment / Residence Visa or Work/ Residence permit
- Valid PIO/OCI card or any other proof of PIO status and signed in and filled in PIO declaration for PIOs
- Additionally, for NRI seafarers – Current work contract and copy of CDC along with the disembarkation stamp on the last page & FEMA declaration.