Foreign Currency Non-Resident (Bank), or FCNR(B), fixed deposits have emerged as popular investments for a lot of Non-Resident Indians (NRIs) ever since the government said that it would bear the hedging cost on deposits of 3-5 years till September 30, 2026. As a result, many banks have increased interest rates on their FCNR(B) FDs of 3 to 5 years. In a high interest rate-scenario, even a small difference of 0.25-0.50% in the FCNR(B) interest rate can significantly increase returns. So, it is important to compare FCNR (B) deposit rates across banks before investing.
Here's a comparison of the highest USD FCNR (B) deposit rates offered by leading banks such as State Bank of India (SBI), HDFC Bank, ICICI Bank, Punjab National Bank (PNB), Kotak Mahindra Bank and Axis Bank.
HDFC Bank FCNR (B) interest rates
HDFC Bank is offering its highest FCNR (B) interest rate on FDs of 3 to 5 years. The bank has increased deposit rates by 25 basis points, from 6% to 6.25%, on tenures from 3 years to 5 years effective August 1, 2026.
ICICI Bank FCNR (B) deposits interest rates
ICICI Bank is offering its highest FCNR (B) deposit rate of 6.25% on tenures of 3 years to 5 years. The rate is available for deposits above USD 4 million. For deposits below USD 4 million, the rate is 6%. These rates are effective from August 4, 2026.
SBI FCNR (B) interest rate
On its 5-year FCNR (B) deposits of above USD one million, State Bank of India is offering its highest interest rate of 6%. The rate is 5.75% on deposits below USD one million of the same tenure.
PNB FCNR (B) interest rate
Punjab National Bank (PNB) offers its highest FCNR (B) deposit rate of 6.50% on its 5-year deposit of less than USD one million. The rate is effective from August 1, 2026.
Axis Bank FCNR (B) interest rate
Axis Bank offers its highest FCNR (B) deposit rate of 6% on tenures of 3 to 5 years. The rate is effective from August 3, 2026.
As per the Axis Bank website, “In accordance with the applicable RBI regulatory guidelines, FCNR (B) deposits opened or renewed on maturity during the period from June 8, 2026, to September 30, 2026, with a minimum contractual tenor of three years and a maximum tenor of five years, shall be subject to a mandatory lock-in period of one year from the date of opening or renewal, as the case may be.”
Kotak Mahindra Bank FCNR (B) interest rate
Kotak Mahindra Bank is offering its highest FCNR (B) deposit rate of 6.30% on its 5-year deposit of above USD 0.5 million. The rate is effective from August 1, 2026.
Highest FCNR (B) interest rates of leading banks
| Bank | 5-Year USD FCNR (B) Interest Rate | Deposit Amount | Effective Date |
| Punjab National Bank (PNB) | 6.50% | Up to USD 1 million | 1-Aug-26 |
| HDFC Bank | 6.25% | All deposits (3-5 years) | 1-Aug-26 |
| ICICI Bank | 6.25% | Above USD 4 million | 4-Aug-26 |
| Kotak Mahindra Bank | 6.30% | Above USD 0.5 million | 1-Aug-26 |
| State Bank of India (SBI) | 6.00% | Above USD 1 million | Current |
| Axis Bank | 6.00% | Up to and above USD 1 million | 3-Aug-26 |
