FCNR(B) deposit calculator: estimate returns in foreign currency
An FCNR(B) deposit lets NRIs hold fixed deposits in foreign currency — USD, GBP, EUR, AED, CAD or AUD — at Indian banks without currency risk. Interest is tax-free in India. The calculator estimates maturity value based on principal, currency, tenure and bank rate.
FCNR interest is tax-free in India
FCNR(B) deposits are held in foreign currency so the principal and interest have no INR conversion risk. Interest is exempt from Indian income tax. Tenure is 1–5 years and rates vary by currency and bank.
Key points
- No INR risk — Principal and interest stay in foreign currency — no exchange-rate risk on the deposit itself.
- Tax-free in India — FCNR interest is exempt from Indian income tax for NRIs, unlike NRO FD interest which is subject to TDS.
- 6 currencies — FCNR deposits are available in USD, GBP, EUR, AED, CAD and AUD at most major Indian banks.
How to calculate FCNR returns
Enter the principal in your chosen currency, select the tenure (1–5 years) and enter the annual interest rate offered by your bank. The calculator returns the maturity amount in the same foreign currency.
To compare with NRE FD: convert the FCNR maturity amount at the expected future exchange rate and compare with the NRE FD INR maturity value. NRE FD has INR exchange-rate risk; FCNR does not.
FCNR vs NRE FD: which is better?
FCNR: no currency risk, moderate rates (linked to LIBOR/SOFR caps), best when INR is expected to weaken.
NRE FD: higher INR rates (typically 6–7%), full exchange risk, best when INR is stable or strengthening.
Both are tax-free in India and fully repatriable.
Frequently asked questions
What currencies can I use for an FCNR deposit?
USD, GBP, EUR, AED, CAD and AUD are permitted. Each currency has its own rate schedule at each bank.
Is FCNR interest taxable in India?
No. FCNR interest is exempt from Indian income tax as long as you maintain NRI status. It may be taxable in your country of residence — check local rules.
Can I break an FCNR deposit early?
Yes, with a penalty. Most banks charge a reduced or zero interest rate for premature closure — check the specific bank's terms before opening.