NRE vs FCNR deposit: rupee return or foreign-currency stability?

An NRE deposit is held in Indian rupees. An FCNR(B) deposit is held in a permitted foreign currency. The better choice depends on the currency in which you expect to use the money at maturity, not the headline interest rate alone.

NRE deposits expose the overseas value of principal and interest to INR movements. FCNR(B) deposits reduce INR conversion risk while the funds remain in the designated foreign currency.

Quick answer

Compare the maturity value in your eventual spending currency. A higher rupee rate can be offset by INR depreciation, while an FCNR(B) deposit can still carry risk when your future spending currency is different.