Highest FCNR (B) rates: Public vs private banks

FCNR (B) FD interest rates: The window for Non-Resident Indians to enjoy favorable FCNR(B) deposit rates is closing shortly, specifically on August 31.

Key points

• (Catch all the Personal Finance News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.).
• Investors can invest in six foreign currencies- the US dollar, Australian dollar, Canadian dollar, Euro, British Pound and the Japanese Yen.
• Among public-sector banks, Central Bank of India is offering the highest rate at 6.60%.
• Note: Rates advertised on respective bank websites as of August 17, 2026.
• IDFC FIRST Bank and IndusInd Bank are offering the highest FCNR (B) interest rate of 6.75% each on US dollar deposits.

Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (PIOs) looking to park their foreign currency savings in India have only a few days left to take the benefit of zero hedging costs on 3-5 year Foreign Currency Non-Resident (Bank) deposits. According to The RBI in June, the administration would bear the hedging cost on 3-5-year FCNR (B) deposits. After this relief, plenty of banks climbed interest rates on their 3-5-year FCNR (B) fixed deposits. The RBI swap window was available till September 30, 2026, but when FCNR (B) drew massive USD deposits, the administration advanced the deadline to August 31. But there are still 12 days left until the deadline. Banks may not decline FCNR (B) immediately on 3-5-year tenors even if the deadline passes. It means NRIs, OCIs or PIOs can still benefit from high FCNR (B) deposit rates for some more days. Here, we take you through the highest FCNR (B) interest rates offered by the public and private sector banks. These rates are mainly of 3-5-year tenors.

Private banks with highest FCNR (B) interest rates.

IDFC FIRST Bank and IndusInd Bank are offering the highest FCNR (B) interest rate of 6.75% each on US dollar deposits. ICICI Bank, HDFC Bank and Axis Bank are offering their highest rate at 6.25% each to NRIs, OCIs and PIOs. Public sector banks offering highest FCNR (B) interest rates.

Among public-sector banks, Central Bank of India is offering the highest rate at 6.60%. While Punjab National Bank's highest rate is 6.45%, bank of Baroda, Canara Bank and UCO Bank are offering a 6.50% interest rate each. Here is a look at the highest FCNR (B) interest rates offered by public and private sector banks. Bank Deposit Rate – USD Public-sector Banks Central Bank 6.60% Bank of Baroda 6.50% Canara Bank 6.50% UCO Bank 6.50% Punjab National Bank 6.45% Private Banks IDFC First Bank 6.75% IndusInd Bank 6.75% ICICI Bank 6.25% HDFC Bank 6.25% Axis Bank 6.25% Note: Rates advertised on respective bank websites as of August 17, 2026. For deposits below USD 1 million with tenures of 3-5 years. Compiled by BankBazaar.

Note: Rates advertised on respective bank websites as of August 17, 2026. For deposits below USD 1 million with tenures of 3-5 years. Compiled by BankBazaar What is an FCNR(B) account?

Meanwhile, an FCNR (B) account allows NRIs, OCIs and PIOs to maintain deposits in foreign currencies, offering tax-free interest, straightforward repatriation of funds and protection against exchange rate fluctuations. Investors can invest in six foreign currencies- the US dollar, Australian dollar, Canadian dollar, Euro, British Pound and the Japanese Yen. Most banks, nevertheless, are offering their best FCNR (B) FD interest rates on US dollar deposits. Why the August 31 deadline matters.

Notably, the current higher-rate opportunity is primarily since of the hedging cost shifting to the administration on 3-5-year FCNR (B) deposits. For NRIs and OCIs considering a longer-term foreign currency deposit, high interest rates provide a good opportunity to earn high returns. Banks are additionally providing up to 19x leverage to FCNR (B) investors. It may additionally support them multiply their profits. Once the August 31 deadline is over, banks may decline their inflated rates on 3-5-year FCNR (B) deposits. (Join our ETWealth WhatsApp channel for all the latest updates).

Add as a Reliable and Trusted News Source.

In short, highest FCNR (B) rates: Public vs private banks is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.