Axis Bank FCNR Account Interest Rates 2026
Axis Bank offers the following interest rates for Foreign Currency Non-Resident (FCNR) deposits of 2026:
| Maturity Period |
USD |
GBP |
EURO |
AUD |
CAD |
JPY |
| Below 1 million |
1 million and above |
| 1 year < 2 years |
4.00% |
4.00% |
4.25% |
1.65% |
3.75% |
2.65% |
0.01 |
| 2 years < 3 years |
3.50% |
3.50% |
3.80% |
0.01 |
3.60% |
2.50% |
0.01 |
| 3 years < 4 years |
3.25% |
3.25% |
0.01 |
0.01 |
3.15% |
2.25% |
0.01 |
| 4 years < 5 years |
3.25% |
3.25% |
0.01 |
0.01 |
3.15% |
2.15% |
0.01 |
| 5 years |
3.25% |
3.25% |
0.01 |
0.01 |
2.95% |
1.95% |
0.01 |
*Axis Bank FCNR Account Interest Rates w.e.f. 10th December 2025
Calculation of Axis Bank FCNR Rate
The interest calculation for Axis Bank FCNR deposits is determined by the deposit tenure, differentiating between simple and compounded interest methods.
-
Deposits Up to One Year
- Method: The interest is calculated on a Simple Interest basis.
- Compounding Effect: There is no compounding effect applied.
- Rate: The applicable simple annual percentage rate (APR) is used for the entire period.
- Day Count Convention: Interest is typically calculated on an Actual/360 day count basis.
-
Deposits More Than One Year
- Method: The interest is calculated on a Compounded Interest basis.
- Compounding Frequency: Interest is compounded at regular intervals of 180 days (semi-annually).
- Remaining Period: After the completed 180-day intervals, the interest for the remaining actual number of days up to maturity will also be compounded (i.e., interest is calculated and added to the principal).
- Rate: The specific FCNR rate used varies based on the chosen currency and the total deposit tenure.
Factors Affecting Axis Bank FCNR Rate
The interest rates offered by Axis Bank on its FCNR Deposits are governed by a combination of global financial markets and domestic regulatory guidelines. Here are the key factors affecting Axis Bank FCNR rates:
-
Currency of Deposit:
The interest rate for each currency (USD, GBP, EURO, JPY, AUD, CAD) is independent. The rate reflects the prevailing interest rate environment and monetary policy of the country corresponding to the currency.
-
Deposit Tenure:
The rate is always tiered based on the duration of the deposit. FCNR accounts have a mandatory minimum tenure of 1 year and a maximum tenure of 5 years. Rates are different for each defined slab.
-
Global Benchmark Rates:
Axis Bank, like all Indian banks, sets its FCNR rates by linking them to global money market benchmarks. The Reserve Bank of India provides guidelines linking FCNR rates to these international benchmarks for the respective foreign currencies.
-
RBI Interest Rate Ceilings:
The RBI sets the overall regulatory framework. It specifies the maximum permissible interest rate that banks in India can offer, which is a spread above the international benchmark rates. Axis Bank must operate its rates within these regulatory limits.
-
Bank's Internal Strategy and Liquidity:
Within the RBI's limits, Axis Bank's management decides the final rates to attract currency inflows or to manage its overall foreign currency liquidity position. The bank adjusts rates to remain competitive with other banks offering FCNR rates.
-
Deposit Amount:
While not always the case for standard deposits, for very large deposit amounts (e.g., in millions of US Dollars), banks may offer slightly differentiated or negotiated rates.
Wrapping Up
The Axis Bank FCNR Account offers NRIs and OCIs a secure, tax-free investment in six major currencies in India for 1 to 5 years. Interest rates are up to 4.25% p.a. for certain tenures (as of December 2025) are managed by global benchmark rates, currency, and tenure. Key to the returns is the calculation method: simple interest for deposits up to one year, transitioning to semi-annual compounding (every 180 days) for longer tenures to enhance the maturity value.
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