{"id":9699,"date":"2026-06-11T16:56:20","date_gmt":"2026-06-11T11:26:20","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=9699"},"modified":"2026-06-11T17:33:11","modified_gmt":"2026-06-11T12:03:11","slug":"how-can-nris-earn-up-to-7-tax-free-interest-on-usd-deposits-check-interest-rates-of-major-banks","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/how-can-nris-earn-up-to-7-tax-free-interest-on-usd-deposits-check-interest-rates-of-major-banks\/","title":{"rendered":"How Can NRIs Earn Up to 7% Tax-Free Interest on USD Deposits? Check Interest Rates of Major Banks"},"content":{"rendered":"\n
\n

Synopsis: <\/strong>RBI has opened a three-month window for NRI dollar fixed deposits at unusually high interest rates. This article lists down the FD rates of major banks for different tenure and deposit amounts.<\/em><\/p>\n<\/blockquote>\n\n\n\n

The Reserve Bank of India (RBI) has lately announced certain special steps that have been taken to increase foreign currency inflows through bearing the hedging cost on new FCNR (B) deposits having maturity period between three to five years till September 30, 2026. After taking these steps, many banks started providing revised rates of FCNR (B) deposits especially for long periods. This has provided the advantage of earning high interest rates to NRIs, with the rate being up to 7.10% on US dollar deposits.<\/p>

\"scapia<\/a><\/div>\n\n\n\n

What Are FCNR(B) Deposits?<\/strong><\/h2>\n\n\n\n

Foreign Currency Non-Resident (Bank), or FCNR(B) deposits, are term deposits which are available to NRIs and OCIs from Indian banks. FCNR(B) deposits can be made in the specified foreign currencies, including US Dollar (USD), Pound Sterling (GBP), Euro (EUR), Japanese Yen (JPY), Australian Dollar (AUD), and Canadian Dollar (CAD). Unlike traditional fixed deposits, FCNR deposits are held in foreign currency. Thus, investors are not affected by exchange rate movements between the Indian rupee and foreign currency of choice<\/p>\n\n\n\n

Key Features of FCNR(B) Deposits<\/strong><\/h2>\n\n\n\n
    \n
  • Available exclusively to NRIs and OCIs.<\/li>\n\n\n\n
  • Deposits can be maintained in major foreign currencies, including USD, GBP, EUR, JPY, AUD, and CAD.<\/li>\n\n\n\n
  • Minimum deposit tenure is one year, while the maximum tenure is five years.<\/li>\n\n\n\n
  • Principal and interest are fully repatriable.<\/li>\n\n\n\n
  • Interest earned on FCNR(B) deposits is generally exempt from tax in India for eligible NRIs.<\/li>\n\n\n\n
  • Depositors do not bear the risk of rupee depreciation since both the principal and interest are paid in the foreign currency in which the deposit was made.<\/li>\n<\/ul>\n\n\n\n

    1. AU Small Finance Bank FCNR(B) Rates (Effective June 10, 2026) <\/strong><\/h3>\n\n\n
    \n \n \n \n \n \n <\/colgroup>\n <\/table>\n \n \n \n<\/div>\n\n\n\n\n

    2. HDFC Bank FCNR(B) Rates (Effective June 2026) <\/strong><\/h3>\n\n\n
    \n

    \n \n \n \n \n <\/colgroup>\n <\/table>\n \n \n \n<\/div>\n\n\n\n\n

    Note:<\/strong> FCNR deposits having a tenor of three to five years will be locked in for one year only. The lock-in period will apply to deposits made from June 10, 2026 to September 30, 2026.<\/p>