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Bandhan Bank FCNR Rates
Non-Resident Indians (NRIs) looking to invest their foreign currency earnings securely and profitably can consider the Foreign Currency Non-Resident (FCNR) deposits offered by Bandhan Bank. An FCNR deposit allows NRIs to hold deposits in foreign currency, earn competitive interest, and avoid currency exchange risks. This article covers the latest Bandhan Bank FCNR rates, benefits, tenure options, and common questions to help NRIs make informed decisions.
Returns as high
as 6.9%*
Includes life cover
Completely Tax free+
as 6.9%*
Includes life cover
Completely Tax free+
Maximum returns Offered by
Guaranteed
Highest
6.9%*
Guaranteed Plan
(by insurance companies)
(10 Years)
6.5%**
Fixed Deposits
(by SBI bank)
(5-10 Years)
6.9%***
Public Provident Fund
(other popular options)
(15 Years)
Get Guaranteed returns up to 6.9%*
Fully Tax-Free* (unlike FD), Life Cover Included
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Bandhan Bank FD Rates
- Bandhan Bank FCNR Rates
Understanding Bandhan Bank FCNR Deposits
Bandhan Bank FCNR deposits are fixed deposits held in foreign currencies such as US Dollar (USD), British Pound (GBP), and Euro (EUR). These deposits offer NRIs a safe investment option with attractive rates and the flexibility of tenure from 1 year to 5 years. The interest earned on these deposits is tax-free in India, and both principal and interest amounts are fully repatriable to overseas accounts without any restrictions.
Information About
Guaranteed Return Plans
Returns Before Tax
6.9%* (TAX-FREE)
Returns After Tax
6.9%*
Guaranteed Returns
Yes
Life Cover
Yes
Tax on Profit
Tax Free*
Risk
No Risk
Fixed Deposits
Returns Before Tax
7% (TAXABLE)
Returns After Tax
4.8%
Guaranteed Returns
Yes
Life Cover
No
Tax on Profit
Taxable
Risk
Low Risk
Debt Mutual Fund
Returns Before Tax
8% (TAXABLE)
Returns After Tax
5.5%
Guaranteed Returns
No
Life Cover
No
Tax on Profit
Taxable
Risk
High Risk
*For annual premium upto ₹5 Lacs
Current Bandhan Bank FCNR Interest Rates
Below are the interest rates for NRI accounts for FCNR deposits:Â
| Tenor | USD | GBP | EUR |
| 1 Year to < 2 Years | 5.56% | 3.97% | NA |
| 2 Years to < 3 Years | 3.86% | NA | NA |
| 3 Years to < 4 Years | 3.86% | NA | NA |
| 4 Years to < 5 Years | 3.86% | NA | NA |
| 5 Years only | 2.86% | NA | NA |
As of August 2025Â
Note: Interest on FCNR deposits for tenures above 1 year is calculated using simple interest, while deposits under 1 year have compounded interest calculated half-yearly. No interest is paid if withdrawn before completing 1 year. Rates are subject to change as per market conditions and Reserve Bank of India (RBI) guidelines.
Benefits of Bandhan Bank FCNR Deposits
- Attractive Interest Rates: Especially in USD and GBP deposits for short to medium tenure.
- Tax-Free Earnings: Interest income is exempt from Indian income tax, making earnings more profitable.
- Complete Repatriability: Both principal and interest can be freely transferred abroad without limits.
- Currency Risk Protection: Deposits are held in foreign currency, shielding depositors from INR exchange fluctuation risks.
- Flexible Tenure: Choose tenures from 1 year up to 5 years based on investment horizon.
- Nomination Facility: Allows easy succession of deposits.
How to Open a Bandhan Bank FCNR Account?
NRIs can open an FCNR account account by submitting required documents such as passport, visa, overseas address proof, and completing Know Your Customer (KYC) formalities at Bandhan Bank branches or online through authorized channels. Deposits can be made via inward remittance in foreign currency.
Conclusion
Bandhan Bank FCNR deposits offer NRIs a secure and efficient way to invest foreign currency funds with the advantage of tax-free interest, repatriability, and competitive rates. With multiple currencies and flexible tenure options, they are a preferred choice for NRIs aiming to maximize returns while managing currency risks.
FAQs
-
Are interest payments on FCNR deposits taxable in India?
No, interest earned on FCNR deposits is exempt from Indian income tax. -
Can NRIs repatriate the principal and interest amounts?
Yes, both principal and interest are fully repatriable without restrictions. -
Is there any penalty for premature withdrawal of Bandhan Bank FCNR deposits?
No interest is payable if the deposit is withdrawn before completion of 1 year. After 1 year, premature withdrawal attracts interest payable only for the period the deposit was held. -
How is interest calculated on Bandhan Bank FCNR deposits?
For deposits held for 1 year or more, interest is calculated on a simple interest basis. For deposits below 1 year, interest is compounded half-yearly.
*All savings are provided by the insurer as per the IRDAI approved
insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per
applicable tax slabs post 31st march 2023
#Discount offered by insurance company
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
˜Top 5 plans based on annualized premium, for bookings made through https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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