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.
