Features of FCNR Account
Here are some of the features of FCNR account as per the following: HDFC bank Website;
- FCNR accounts are fixed deposit accounts and not savings accounts. Premature withdrawal is allowed by banks but interest is paid only after completion of 1 year.
- You can open an FCNR account by transferring money from your existing Non-Resident External (NRE) account.
- The interest earned on your deposits on FCNR accounts is tax-free, that is, it is not taxable in India.
- The principal amount of your FCNR deposit and the interest earned on it is fully repatriable, i.e. it is fully transferable.
- You can also avail overdraft facility on your FCNR Fixed Deposit account.
- So, if you are looking for an option to save your money in foreign denominations, FCNR accounts are an excellent option.
State Bank Of India FCNR FD Rates
Simple interest is applicable on FCNR (B) deposits made by SBI customers for one year. For FCNR (B) deposits for tenors exceeding one year, the 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If the FCNR deposit is prematurely withdrawn before one year, no interest will be paid.
“No penalty will be levied if you close your FCNR fixed deposit early.
The rate of interest applicable on premature closure deposits (all amounts) shall be the lower of: Base Rate for the principal/contract period for which the deposit is booked or
Base rate applicable for the period for which the deposit is with the bank.”
ICICI Bank FCNR FD Rates
The bank has revised its FCNR on 13 September 2022.
Canara Bank FCNR FD Rates
According to the Canara Bank website, “Interest rates are applicable only for FCNR deposits of less than USD 1 million (or its equivalent in other currencies). USD 1 million and above (or its equivalent in other currencies) Please contact our branch for FCNR deposit of Rs.
Required Documents
Apart from the basic eligibility to be an NRI or Person of Indian Origin (PIO), you need to submit the following documents to open an FCNR account as per the DBS Bank website.
- A valid passport and a recent passport size color photograph
- Address proof in India (optional)
- Proof of address 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 and filled in PIO declaration for PIO
- Additionally, for NRI seafarers – last page with current work contract and copy of CDC landing seal and FEMA declaration.