Foreign Currency Non-Resident (FCNR) Deposit
Karnataka Bank's Foreign Currency Non-Resident (FCNR) Deposit is an opportunity to save and grow your funds, supporting NRIs from United States, the Eurozone, the United Kingdom and more. These deposits are attractive for their tax-free interest, making them an excellent option to diversify your investments across various stable global currencies. With flexible deposit periods ranging from one to five years, you can tailor these accounts to your specific financial needs and goals. This deposit is a strategic financial tool for NRIs, combining the benefits of global currency diversification with the security and stability of Indian banking. Read more
Why this fixed deposit is for you
Choose from 8 major currencies for your deposits
Benefit from the stability and safety offered by Karnataka Bank, a trusted financial institution
Save in eight key international currencies such as USD, EUR, GBP, CAD, AUD, SGD, HKD, and CHF
Enjoy the advantage of tax-exempt interest, enhancing the value of your global savings
Eligibility criteria
- NRIs residing abroad
- Indian students studying overseas
- Seafarers of Indian origin working for overseas shipping companies
- PIOs and OCIs
- Individuals holding a foreign passport (excluding Bangladesh and Pakistan) with Indian lineage, or spouses of Indian citizens
Documents required
- Resident card or foreign passport
- Relevant visa of overseas country
- Overseas residential proof
- PAN card or Form 60
- Document photocopies attested by officials from overseas Indian banks, notaries, magistrates, or Indian embassies/consulates
As easy as 1,2,3...
Apply for a FCNR Deposit in 3 simple steps
Step 1
Visit your nearest branch
Go to your nearest Karnataka Bank branch
Step 2
Start with your basic details
Provide your basic details and keep your documents handy
Step 3
We’ll take care of the rest
Our branch officials will notify you when your deposit is opened
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These accounts can be opened in several major currencies, including the US Dollar (USD), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), Singapore Dollar (SGD), Hong Kong Dollar (HKD), and Swiss Franc (CHF). This wide range of options allows NRIs to choose a currency based on their personal or business-related financial exposure and requirements.
The deposit tenures for these accounts are quite flexible, ranging from a minimum of 1 year to a maximum of 5 years. This range allows NRIs to align their investment with both short-term and long-term financial goals, providing the opportunity to plan for various financial needs or milestones.
The interest earned on these foreign currency deposits is exempt from tax in India. This tax-efficient feature makes these accounts highly attractive to NRIs who are looking to optimize their savings and investment returns in a fiscally advantageous manner.
Joint deposit options are available for these deposits, where an NRI can hold a deposit jointly with another NRI or a resident close relative in India. This feature provides flexibility and convenience in managing funds, especially useful for families where financial responsibilities or investments are shared.
The minimum period for depositing in these accounts is set at 1 year. This period is designed to cater to NRIs who are looking for a short-term saving instrument in foreign currency, offering them the benefits of liquidity and interest accumulation.
The rules regarding repatriation of funds in these deposits can vary, and it is advisable to check with us for specific details. Generally, these deposits offer a degree of flexibility in repatriation, which can be beneficial for NRIs needing to move funds across borders.
Opening and managing these deposits is straightforward with our digital banking platforms. These platforms provide the convenience of online deposit management, allowing you to handle your foreign currency deposits remotely and efficiently, irrespective of their geographic location.
To download the KBL Mobile Plus app, visit the Google Play Store or Apple App Store on your mobile device. Search for 'KBL Plus' in the store, select the app published by Karnataka Bank, and click 'Install' to download it onto your device.
Nomination facilities are provided with these accounts. This feature is crucial as it simplifies the process of transferring funds in the event of unforeseen circumstances, ensuring a smooth transition of the account's holdings to the nominee.
Foreign Currency Non-Resident (FCNR) Deposits and Non-Resident (Ordinary) Recurring Deposits cater to different needs of NRIs. FCNR accounts, held in foreign currencies like USD, GBP, or EUR, offer tax-free interest in India and full repatriability, ideal for investing foreign earnings without currency conversion risks. In contrast, NRO deposits are for saving income earned in India in Indian Rupees (INR), with interest subject to Indian taxes. The principal in NRO deposits is non-repatriable, but interest can be repatriated under certain conditions. FCNR is suitable for foreign currency savings, while NRO is for managing Indian earnings.
The Foreign Currency Non-Resident (FCNR) Deposit is an advantageous financial tool for NRIs looking to maintain their savings in foreign currency, safeguarding them from exchange rate fluctuations. One primary benefit of an FCNR deposit account is its ability to accrue interest at competitive rates in the chosen foreign currency, which could potentially offer higher returns than those available in the home country. Furthermore, an FCNR bank account is fully repatriable, meaning the funds in the account, along with the interest earned, can be moved back to the NRI's country of residence without incurring any currency conversion charges. This type of account, which includes variants like foreign currency fixed deposit account and foreign currency investment account, offers the flexibility and convenience of managing large sums of money in foreign denominations. Whether for savings or as part of a broader investment strategy, an FCNR deposit account stands as a secure and profitable option for NRIs seeking to optimize their earnings and maintain their wealth in a stable currency.
NRI services play a crucial role in bridging the financial needs of the Indian diaspora with the opportunities available in India. They provide a platform for NRIs to invest, save, and manage their earnings in their home country, even while they reside abroad. Services like NRI accounts, loans, and investment options ensure that NRIs can contribute to and benefit from India's economic growth. These services also aid in maintaining a financial connection with their homeland, which is crucial for those who plan to return or have familial and investment ties in India.
