State Bank of India FCNR Interest Rates
The SBI interest earned on the FCNR is tax-exempt in India, and both the principal and interest are fully transferable back overseas. The SBI FCNR rates are competitively linked to global rates and vary significantly based on the currency and deposit period.
| CURRENCY |
USD |
GBP |
EURO |
CAD |
AUD |
JPY |
| PERIOD OF THE DEPOSIT |
RATE |
RATE |
RATE |
RATE |
RATE |
RATE |
| 1 year |
4.70 |
4.25 |
2.75 |
2.97 |
3.75 |
0.40 |
| Above 1 year to less than 2 years |
4.70 |
4.25 |
2.75 |
2.97 |
3.75 |
0.40 |
| 2 years to less than 3 years |
3.85 |
4.20 |
1.25 |
2.72 |
3.65 |
0.40 |
| 3 years to less than 4 years |
3.65 |
3.25 |
1.25 |
2.47 |
3.55 |
0.40 |
| 4 years to less than 5 years |
3.25 |
3.15 |
1.25 |
2.52 |
3.45 |
0.30 |
| 5 years |
3.35 |
3.05 |
1.25 |
2.57 |
3.35 |
0.30 |
*State Bank of India FCNR Interest Rates w.e.f. 15.12.2025. The interest on a 1-year deposit is calculated using Simple Interest, and for deposits above 1 year are compounded half-yearly (every six months).
Factors Affecting SBI FCNR Interest Rates
SBI Foreign Currency Non-Resident (FCNR) deposit rates are mainly driven by global markets and regulations. Some factors that can affect are:
-
Global Interest Rates:
FCNR rates follow the interest rates set by the CBFC. For example, USD rates track the US Federal Reserve's policy. If the US Fed hikes rates, the USD FCNR rates in India tend to rise.
-
RBI Ceiling (Cap):
The RBI sets a maximum limit on the rate SBI can offer. SBI's rates must always be at or below this cap, which is usually the global benchmark rate plus a small margin.
-
Currency of Deposit:
The rate is unique to the currency you deposit (USD, GBP, EUR, etc.). Currencies with higher global interest rates will have higher FCNR rates than those with low rates.
-
Tenure of Deposit:
The interest rate changes based on how long you lock the money in, usually ranging from 1 year to 5 years.
State Bank of India FCNR Account Rates & Tax Implications
Interest income is tax-free for NRIs, but taxability applies upon relocation to India based on the depositor’s tax status. However, after coming back to India, you will be liable to pay tax based on your tax status.
Wrapping Up
SBI FCNR rates are tax-exempt for NRIs to earn competitive rates up to 4.70% for shorter tenures. FD rates for NRIs usually depend on the currency and tenure. It’s wise to check the current NRE FD interest rates before investing. The tax liability kicks in only after relocating back to India, and that is based on your status.
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