1. Is the interest earned on FCNR accounts taxable in India?

No. As per current Indian Income Tax laws (Section 10(4)), the interest earned on FCNR (B) deposits is 100% exempt from income tax in India. You do not have to worry about Tax Deducted at Source (TDS). However, you should check the tax laws in your country of residence, as it may be taxable there.

2. What happens if I withdraw my IDBI FCNR deposit before one year?

If you close your IDBI FCNR account before completing a full 365 days (1 year), the Bank will pay no interest. Only deposits held for one year or longer qualify for interest payouts.

3. Can I open a joint FCNR account with a resident Indian?

No. IDBI FCNR (B) accounts can only be held jointly with other Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs). If you wish to have a joint account with a resident relative, you might consider an NRO (Non-Resident Ordinary) account instead.

4. What is the minimum amount required to open an FCNR account?

The minimum deposit to start an IDBI FCNR account is USD 1,000 (or its equivalent in the other eight accepted currencies).

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IDBI FCNR Rates

IDBI Bank FCNR (B) deposits offer NRIs a way to grow foreign earnings securely. With tax-free interest up to 4.75% in India and protection against currency swings, this scheme allows you to invest in nine major currencies with the ease of full repatriation.

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Latest IDBI FCNR Rates 2026

These are the IDBI Foreign Currency Non-Resident (Bank) - FCNR (B) deposit ratesof 2026 :

Tenure	USD up to $1 Mio	GBP	EUR	AUD	CAD	JPY*	SGD	HKD	CHF
1 yr to 2 yrs	4.75%	4.25%	2.65%	3.75%	2.90%	0.40%	2.10%	0.50%	N.A
2 yrs to 3 yrs	3.90%	3.60%	2.20%	3.00%	2.30%	N.A	1.60%	0.50%	N.A.
3 yrs to 4 yrs	3.55%	3.20%	1.95%	2.60%	1.90%	N.A.	1.00%	0.50%	N.A.
4 yrs to 5 yrs	3.35%	3.00%	1.75%	2.40%	1.75%	N.A.	0.45%	0.50%	N.A.
5 years only	3.35%	3.00%	1.75%	2.25%	1.75%	N.A.	0.45%	0.50%	N.A.

Note: IDBI FCNR Rates are w.e.f January 01, 2026

*N.A.: Not accepting deposits in these buckets.

Key Pointers for IDBI FCNR Rates

Here are some important pointers for FCNR Rates offered by IDBI Bank:

Differentia Interest for USD:

For larger investments in USD, the bank often offers slightly higher rates. As of January 2026, deposits exceeding $1 million can fetch up to 4.75% for a 1-year tenure, compared to the standard 4.75%.
Interest Payouts:

Interest is calculated on a 360-day basis and is compounded half-yearly. You can choose to receive these payouts every six months or accumulate them to be paid out at maturity.
Joint Accounts:

NRIs can open joint FCNR accounts with other NRIs. However, they cannot open a joint FCNR account with a resident Indian (unlike NRO accounts).

Conclusion

IDBI Bank’s FCNR (B) deposits offer a combination of high-yield returns, reaching up to 4.75%, and complete tax exemption in India. By saving in major global currencies, you effectively eliminate exchange rate risks while benefiting from half-yearly compounding growth. With the convenience of full repatriability and the option for joint NRI accounts, it remains one of the most stable and efficient ways for NRIs to grow their overseas earnings securely in India.

FAQs

1. Is the interest earned on FCNR accounts taxable in India?

No. As per current Indian Income Tax laws (Section 10(4)), the interest earned on FCNR (B) deposits is 100% exempt from income tax in India. You do not have to worry about Tax Deducted at Source (TDS). However, you should check the tax laws in your country of residence, as it may be taxable there.
2. What happens if I withdraw my IDBI FCNR deposit before one year?

If you close your IDBI FCNR account before completing a full 365 days (1 year), the Bank will pay no interest. Only deposits held for one year or longer qualify for interest payouts.
3. Can I open a joint FCNR account with a resident Indian?

No. IDBI FCNR (B) accounts can only be held jointly with other Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs). If you wish to have a joint account with a resident relative, you might consider an NRO (Non-Resident Ordinary) account instead.
4. What is the minimum amount required to open an FCNR account?

The minimum deposit to start an IDBI FCNR account is USD 1,000 (or its equivalent in the other eight accepted currencies).

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*Past 10 Year annualised returns as on 01-02-2026
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
^Returns as on 10th Jan'25. 18% returns for Tata AIA Life Top 200 for the last 10 years.The past performance is not necessarily indicative of future performance. Source: Morningstar

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