After the government decided to cover hedging costs for 3 to 5-year Foreign Currency Non-Resident Bank- FCNR (B) accounts until September 30, 2026, a lot of banks have raised interest rates on these deposits. With some banks offering over 7% interest rate on FCNR(B), Non-resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (PIOs) can look forward to higher maturity amounts than before. But what if they want to explore ways to maximise their returns from FCNR(B)? Can leveraging help them earn even more?
An expert projection shows that by leveraging a $10,000 investment, you can earn as much as $6,150 in interest from a three-year FCNR(B) deposit offering a 7% rate. The projections also show that even with a deposit offering a 6% rate, you could see potential returns of up to $3,150 in three years. This stands in stark contrast to the $4,750 loss you would incur for the same period if the interest rate of the same FCNR(B) were only 3.5%.
