FCNR FDs offering up to 7.50% return: Check list

In June, the government announced it would cover hedging costs for 3-5-year Foreign Currency Non-Resident (Bank), or FCNR (B) deposits until September 30, 2026. This decision made FCNR (B) fixed deposit (FD) interest rates more appealing to investors such as Non-Resident Indians (NRI) and Overseas Citizens of India (OCIs). Many banks started offering rates of over 7%, with some providing as much as 6.25% on the 5-year tenure.

An FCNR (B) account enables NRIs, OCIs, and Persons of Indian Origin (POIs) to hold deposits in foreign currencies, providing tax-free interest, easy fund repatriation, and protection from exchange rate fluctuations. These accounts can be held in US dollars, Australian dollars, Canadian dollars, Euros, British pounds, or Japanese Yen. Most banks now provide the best FCNR (B) FD interest rates on US dollar investments.

Among the FD interest rates up to 7.50% offered on USD deposits, ESAF Small Finance Bank stands out with a 7.50% rate on a 5-year tenure, starting from June 30, 2026. AU Small Finance Bank offers the highest FCNR (B) deposit interest rate of 7.40% on USD-denominated deposits, lasting 3 to less than 4 years, beginning July 27, 2026.

HDFC Bank and ICICI Bank both provide a 6.25% rate on tenures of 3 to 5 years, effective from August 1 and August 4, 2026, respectively. Ujjivan Small Finance Bank offers a 7.50% rate for tenures of 3 to 5 years, applicable from June 25, 2026. Bank of Baroda and Yes Bank offer 6.50% and 6.60% interest rates, respectively, on tenures of 4 to 5 years, starting from July 13 and July 8, 2026.