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According to the RBI circular, “ In this connection, banks are advised that with effect from July 07, 2022, the interest rate ceiling applicable to FCNR (B) deposits is being temporarily withdrawn for incremental FCNR (B) deposits mobilized by banks for the period until October 31, 2022.
Following the circular many banks including
, , and revised their FCNR deposits.
What is FCNR account?
Foreign Currency Non-Resident Account is referred to as FCNR. An FCNR Account, which enables you to keep money earned abroad in foreign currency, is an option if you are an NRI and wish to retain a Fixed Deposit Account in India.
According to HDFC Bank, “FCNR Accounts are an excellent investment option for NRIs if you wish to retain your money in foreign currency and earn good returns at the same time. Since your money will be held in foreign denomination, you can be saved the risk of exchange rate fluctuations. This also ensures that you earn higher, risk-free returns. Also, if you are unsure about where to save or invest your hard -earned money, you can opt for an FCNR Account.”
State Bank of India FCNR rates
revised Foreign Currency Non-Resident rates with effect from July 10, 2022. According to SBI website, for 1 year’s FCNR deposit, simple Interest is applicable. For deposits above 1 year, interest is compounded at half yearly frequency.
SBI interest rates for FCNR deposits is in the range of 2.85 percent to 3.25 percent for USD currency.
Premature withdrawals of FCNR (B) Deposits
If the deposit is withdrawn before one year, no interest is payable. There is no early withdrawal penalty for deposits withdrawn after one year. However, interest will be paid at the rate in effect during the time the deposit was held by the Bank. Interest will be paid at the rate in effect on the day of deposit.
HDFC Bank FCNR rates
HDFC Bank interest rates for FCNR deposits is in the range of 2 percent to 3.35 percent for USD currency. The bank has revised FCNR rates with effect from July 9, 2022.
According to the HDFC Bank website, “Effective 1st JULY 2021 FCNR deposit for GBP,EURO & JPY currencies will be offered only for 1 Year tenure. Existing FCNR deposits booked under GBP, EURO & JPY currencies for the tenor 1 year 1 day to 5 year and which are due for auto renewal will be auto renewed for 1 year tenor by default.”
ICICI Bank FCNR rates
The new FCNR interest rates are applicable w.e.f July, 13th 2022. ICICI Bank offers FCNR deposits for USD, GBP, SGD, CAD, AUD and HKD.
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