Everything You Need to Know About FCNR Accounts
What if there was a way to secure your overseas earnings and make sure fluctuating exchange rates do not diminish their value? The Foreign Currency Non-Resident (FCNR) account offers exactly that. Tailored for Non-Resident Indians (NRIs), the FCNR account not only helps you maintain your savings in your currency of choice but also yields attractive returns for optimum growth.
Interested in opening an FCNR account? Find out all the details here to proceed confidently and make an informed decision.
What is an FCNR account?
An FCNR account is a term deposit account that allows NRIs to hold their earnings in different global currencies. This NRI account protects your deposits from fluctuations in exchange rates since your money is placed in a foreign denomination. Moreover, the interest earned is not taxable in India, which makes it a financially efficient option for managing your foreign income.
Types of currencies accepted
With the IndusInd Bank FCNR Account, you can maintain your funds in major currencies, such as:
- US dollar (USD)
- British pound sterling (GBP)
- Euro (EUR)
- Japanese yen (JPY)
- Canadian dollar (CAD)
- Australian dollar (AUD)
Simply apply online with IndusInd Bank and enjoy competitive rates and premium NRI banking services at your fingertips!
Key features and benefits of FCNR accounts
Interest: FCNR deposits must be held for a minimum of one year to earn interest, which is compounded every 180 days.
Repatriation of funds: These accounts are essentially fixed deposits with a minimum tenure of one year and a maximum of five years. The interest earned and the principal amount are fully repatriable, meaning you can transfer them back to your country of residence without any restrictions.
Loan against deposits: Loans against FCNR deposits may be granted to NRIs, subject to usual margin requirements. It can be repaid by adjusting the deposits or through inward remittances from abroad through banking channels or from the account holder’s NRO account balances.
Joint account facility: It is possible to hold an FCNR account jointly with a resident close relative on a ‘former or survivor’ basis.
Premature withdrawal: If you withdraw from an FCNR deposit before the minimum one-year period is completed, no interest will be paid. Banks may also apply a penalty to cover the swap cost incurred due to early withdrawal. Your FCNR interest rate, along with withdrawal conditions and applicable penalties, are clearly specified in your deposit agreement.
Funding the account: You can fund the FCNR account through a cheque or wire transfer from your overseas bank account.
Another option is to transfer money from an existing Non-Resident External (NRE) account to your FCNR account. Opening an NRE account is simple and can be done entirely online. All you have to do is visit your bank’s online portal, fill out the NRI account opening form, and submit the documents digitally. No multiple bank visits or time-consuming paperwork needed.
Eligibility and documentation
To open an FCNR account online, NRIs must fulfil the following criteria:
| NRI status | Non-Resident Indian (NRI) or Person of Indian Origin (PIO) |
| Documentation | An account opening form Passport size photos Attested copies of your passport and visa Proof of foreign address initial remittance Additional documents like a cancelled cheque, an overseas bank statement, and income documents |
To sum up
FCNR accounts offer NRIs a secure and tax-efficient way to invest their foreign earnings in India. By understanding the key features, benefits, eligibility, documentation, and considerations involved, you can make calculated decisions to leverage FCNR accounts in the best possible way for your financial goals.
Once you open the account, enjoy competitive FCNR deposit rates, insulation against exchange rate fluctuations, easy repatriation options, and even loan facilities. Get the much-needed financial flexibility and growth you deserve.
