FCNR (B) fixed deposit (FD) interest rates on select tenures became more attractive after the government said in June that it would bear hedging costs on 3-5-year Foreign Currency Non-Resident (Bank), or FCNR (B) deposits till September 30, 2026. The move provided banks with more flexibility to offer higher rates to investors, such as Non-Resident Indians (NRI) and Overseas Citizens of India (OCIs), on 3-5-year FCNR (B) deposits.Some banks are now offering over 7% interest rate on select FCNR (B) tenures. Many of them are offering a rate of 6.25% or higher, mainly on the 5-year tenure. What is an FCNR(B) account?An FCNR (B) account allows NRIs, OCIs and Persons of Indian Origin (POIs) to maintain deposits in foreign currencies, offering tax-free interest, easy repatriation of funds and protection against exchange rate fluctuations.Investors can invest in the US dollar, Australian dollar, Canadian dollar, Euro, British pound and Japanese Yen. Most banks, however, are offering their best FCNR (B) FD interest rates on US dollar investments.Also read:Hidden risks of FCNR (B) deposit investment and leverage: Why high interest rates may not tell the full storyHere are FCNR(B) FD interest rates of up to 7.50% offered on USD deposits;Highest ESAF Small Finance Bank FCNR (B) interest ratesESAF offers its highest FCNR (B) deposit interest rate of 7.50% on a 5-year tenure of deposits below USD 500,000. The rate is applicable from June 30, 2026.Highest AU Small Finance Bank FCNR (B) interest rateAU Small Finance Bank is offering its highest interest rate of 7.40% on USD-denominated FCNR (B) deposits of 3 to less than 4 years. The rate is applicable from July 27, 2026.Highest HDFC Bank FCNR (B) interest rateHDFC Bank offers its highest interest rate of 6.25% on FCNR (B) deposits of 3 years to 5 years. The rate is applicable from August 1, 2026.Highest ICICI Bank FCNR (B) interest rateICICI Bank offers its highest FCNR (B) deposit interest rate of 6.25% on tenures of 3 years to 5 years. The rate is applicable from August 4, 2026.Highest Ujjivan Small Finance Bank FCNR(B) interest rateUjjivan Small Finance Bank offers its highest FCNR (B) deposit interest rate of 7.50% on tenures of 3 to 5 years. These rates are applicable from June 25, 2026.As per the Ujjivan Small Finance Bank website, “For USD deposits booked under the 3 years up to 5 years tenor during the period of June 12, 2026, to September 30, 2026, the RBI FCNR (B) swap facility shall have a mandatory lock in period of one year. No premature closure will be permitted during this period.”Highest Bank of Baroda FCNR (B) interest rateBank of Baroda is offering its highest FCNR (B) FD interest rate of 6.50% on tenures of 4 to 5 years. The rate is applicable from July 13, 2026.Latest FCNR(B) interest rates offered by select banks for NRIsBankHighest FCNR(B) interest rateTenureUjjivan Small Finance Bank7.50%3 years to 5 yearsESAF Small Finance Bank7.50%5 yearsAU Small Finance Bank7.40%3 years to less than 4 yearsBank of Baroda6.50%4 years to 5 yearsHDFC Bank6.25%3 years to 5 yearsICICI Bank6.25%3 years to 5 years