SynopsisGovernment support for FCNR(B) deposits until September 2026 has sparked renewed investor interest. Banks are now offering higher interest rates on these foreign currency accounts. Non-Resident Indians can benefit from avoiding Indian currency depreciation risks.ET Online FCNR (B) FD rates at India’s top banks comparedEver since the government announced that it would bear the hedging cost on Foreign Currency Non-Resident- FCNR (B)- deposits till September 30, 2026, there is renewed interest in FCNR (B) investments. As a result of the government’s announcement, many banks reciprocated with increasing interest rates on their FCNR (B) schemes.An FCNR (B) allows deposits in a foreign currency such as US dollar, British Pound, Euro, Canadian dollar, etc. Non-Resident Indians (NRIs), Persons of Indian Origin (POIs) and Overseas Citizens of India (OCIs) can deposit and withdraw their amounts in an FCNR (B) in India in a foreign currency.This avoids them from Indian currency depreciation. With banks increasing interest rates on FCNR(B) schemes, many NRIs, OCIs and POIs have been eyeing earning a high interest by investing in them. Here, we take you through the 5-year FCNR (B) fixed deposit (USD) interest rates from the leading banks such as State Bank of India (SBI), HDFC Bank, Punjab National Bank (PNB), ICICI Bank and Axis Bank. FCNR (B) FD interest rates on 5-year USD depositsWhat is an FCNR(B) fixed deposit (FD) scheme?It is a fixed-term deposit account allowing NRIs, POIs and OCIs to park overseas earnings in India in designated foreign currencies rather than Indian rupees. They can earn interest and withdraw the maturity amount in the same currency in an FCNR(B) FD. This can be relevant for NRIs who expect to use the funds in that foreign currency in the future.Tax treatment of FCNR (B) in IndiaInterest earned on an FCNR (B) deposit is exempt from income tax in India, subject to applicable regulations and eligibility conditions.Tax rules in the country of an FCNR (B) depositor’s residence may be different. It may be useful to check your local tax obligations before booking a deposit.Repatriation of funds in FCNR(B)Both the principal amount and interest earned on an FCNR (B) deposit can be repatriated in the foreign currency of the deposit, subject to applicable regulations.This can be useful for NRIs, OCIs and POIs who may need the funds outside India after maturity. (Join our ETWealth WhatsApp channel for all the latest updates)...more