FCNR Account [FCNR Deposit Account]

In this article, we’re discussing the FCNR account.

If you’re not familiar with the FCNR account, it refers to the Foreign Currency Non-Resident Account.

In this article we will take a look at the FCNR, why it is used, answer related questions, and help you decide if it’s right for you.

This article is part of our free series on banking, ranging from how to open accounts as a foreigner to NRI bank account opening, and everything in between.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

1. FCNR Account
2. Who Can Open an FCNR Fixed Deposit Account?
3. Benefits of Having an FCNR Account
4. Frequently Asked Questions
5. Ready to Explore Your Options?

FCNR Account

FCNR account refers to a Foreign Currency Non-Resident Account, which is a fixed-term deposit account in India. The FCNR account is available to Non-Resident Indians and Non-Resident Indian majority-owned overseas entities. The minimum deposit term for an FCNR is one year, and it can be opened (and held) in a number of major international currencies.

Who Can Open an FCNR Fixed Deposit Account?

Clients who can open an FCNR fixed deposit account include Non-Resident Indians (or NRIs) and Overseas Corporate Bodies, which include corporations, partnerships, trusts and other corporate entities outside of India with at least sixty percent ownership held by Non-Resident Indians.

In other words, to open an FCNR, the prospective customer either needs to be a Non-Resident Indian or a company with the majority ownership (60%) held by a Non-Resident Indian.

Importantly, an FCNR account has a minimum deposit horizon of one calendar year. So, in addition to restrictions on who can open an account, it’s important to mention that the account holder needs to be willing to deposit their funds for this length of time.

Benefits of FCNR Accounts

There are several key benefits to FCNR accounts that are worth considering. The most important benefits that most people reference when considering an FCNR account include protection against international exchange rate fluctuations, the ability to repatriate funds freely, higher interest rates, and tax-free interest payments.

Here is a look at the key benefits of FCNR deposits that many people reference when choosing to open.

Benefits of FCNR Deposits

• Choice of international currencies
• Rupee fluctuation protection
• Higher interest rates on FCNR deposits
• Ability to repatriate funds out of India
• Tax-free interest payments

Do You Want Our Free Non-Resident Banking Guide?

Sign up here to receive our Free Non-Resident Banking Starter Guide and weekly updates on the best account opening options available:

Frequently Asked Questions

Below are three of the most common questions we receive from people looking into opening an FCNR account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

Is It Safe to Put Money Into an FCNR Account?

Whether it is safe to put money into an FCNR account will ultimately depend on the specific bank where the account is being held. Likewise, the currency of choice can impact the overall risk profile of a deposit. This is especially true when compared to other currencies or when you have expenses in the local market (India) but you hold deposits in another currency.

Which Is Better FCNR or NRE?

Whether FCNR or NRE is a better account choice for you will ultimately depend on whether you want to hold foreign currencies or Indian Rupee. This is because the FCNR allows individuals to hold foreign currency while the NRE automatically converts all foreign deposits into Indian Rupee. Therefore, many depositors choose to open an FCNR as it can provide greater security for their deposits.

What Currencies Are Available for Opening an FCNR Deposit Account?

Currencies available for opening an FCNR deposit account are generally limited to the largest and most transferable currencies in the world. This includes major reserve currencies like the United States Dollar (USD), British Pound (GBP), Euro (EUR), Canadian Dollar (CAD), Australian Dollar (AUD), and Japanese Yen (JPY).

Do You Want Help Opening Bank Accounts?

If so, you can get access to GlobalBanks IQ in just a few clicks.

GlobalBanks IQ is our flagship international account opening solution. It gives you instant access to the…

+ Expert insights on which banks to choose & why

+ Step-by-step reports to open accounts in the best banking hubs

+ GlobalBanks international bank database & detailed bank profiles

+ Tried & tested banks for high-risk, offshore, & non-resident clients

+ Plus, get YOUR most pressing bank account opening questions answered by our team!

And “yes!” GlobalBanks IQ helps foreigners and non-resident individuals open bank accounts.

In fact, GlobalBanks IQ even helps non-resident, foreign & offshore entities open bank accounts.

Use the link in our menu above to learn more about GlobalBanks IQ. Or, contact us directly with any questions!