HDFC Bank, ICICI Bank raise FCNR (B) interest rates: Depositors to get up to 6.25% rates on select tenures; check details - The Economic Times

After the government relaxed the hedging cost on select FCNR (B) deposits, many banks are passing this advantage to its customers by increasing Foreign Currency Non-Resident (Bank)-FCNR (B)- fixed deposit (FD) interest rates.

HDFC Bank and ICICI Bank have also increased FCNR (B) deposit rates by 25 basis points (0.25%) each on select USD FCNR (B) deposit tenures.

The applicable interest rate depends on the deposit amount and tenure.

One of the key advantages of FCNR (B) fixed deposits is that the interest earned is tax-free in India.

Before investing, Non-Resident Indians (NRIs) looking to park their foreign currency savings in India should compare the latest FCNR (B) deposit rates offered by different banks.In June 2026, the RBI announced that the government would bear the hedging cost on 3-5-year FCNR (B) deposits.