Following the Reserve Bank of India's (RBI) announcement that the government would bear hedging costs for new Foreign Currency Non-Resident (Bank), or FCNR(B), deposits with maturities of three to five years until September 30, 2026, State Bank of India (SBI) has revised its FCNR(B) deposit interest rates. The bank is now offering Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (POIs) interest rates of up to 5.75% per annum, as per updated FCNR(B) interest rates on its official website. The said interest rate is available on the 5-year SBI Advantage US dollar-denominated deposit of under $1 million investment. The same FCNR(B) scheme is offering a 6% rate on investments above $1 million. What is an FCNR(B) account?An FCNR account allows Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (PIOs) to maintain fixed deposits in foreign currencies, offering tax-free interest, easy repatriation of funds and protection against exchange rate fluctuations.Public and private sector banks offer FCNR(B) in currencies such as USD, GBP, EUR, AUD, CAD and JPY. Tenures and interest rates offered by these banks may vary.Also read: Revised FCNR interest rates up to 7.13%: PNB, ICICI Bank, Axis Bank and others revise ratesSBI Advantage FCNR(B) deposit interest rateSBI's revised FCNR(B) deposit rates under its SBI Advantage scheme vary based on the deposit amount and tenure. For deposits of three years and above but less than four years, the bank offers a 5.25% rate per annum on deposits of up to USD 1 million and 5.50% per annum on deposits exceeding USD 1 million. For deposits with a tenure of four years and above but less than five years, customers can earn a 5.50% per annum rate on deposits up to USD 1 million, while those investing more than USD 1 million can earn a 5.75% rate per annum.For five-year FCNR(B) deposits, SBI offers its highest rates- 5.75% per annum for deposits of up to USD 1 million, and 6% per annum, for deposits above USD 1 million.Following interest rates will be applicable under the scheme: Following interest rates will be applicable under the scheme: Period of Deposit Interest Rate (p.a.) Up to USD 1 Mio Above USD 1 Mio 3 years and above but less than 4 years 5.25 5.5 4 years and above but less than 5 years 5.5 5.75 5 years only 5.75 6 Premature withdrawal conditionsAs per the SBI website, “No premature withdrawal is permitted under the scheme for a period of 1 year from the date of opening of FCNR(B) deposit. In case of premature withdrawal after 1 year and before 3 years, interest will be payable at 3.50% for the period deposit kept with the bank.In case of premature withdrawal between 3 years to less than 5 years, interest will be payable at 1.00% lower than the rate of interest applicable for the period the deposit has run with the bank.”Benefits of SBI FCNR (B) accountsSBI FCNR(B) account benefits include tax-free returns in India and safeguarding funds in a stable currency.Here are benefits of investing in FCNR, as per SBI website Tax advantageSBI FCNR(B) deposit accounts provide tax advantages on the tax-exempt interest earned in India. They are, therefore, the best option for NRIs who want to stay clear of extra tax obligations.Save conversion costMaintaining an FCNR(B) deposit account will relieve you of the burden of conversion costs and volatile exchange rates, which can be problematic for people who transfer money between nations regularly.Exchange rate swingsFCNR(B) deposit account protects you from exchange rate swings because the money is deposited in a foreign currency, guaranteeing steady profits on your investment.