What are the Latest FCNR Interest Rates Offered by SBI?

FCNR (Foreign Currency Non-Resident) deposits are a popular investment option among NRIs (Non-Resident Indians) who want to earn higher returns on theirforeign currency deposits. State Bank of India (SBI), one of the leading banks in India, offers attractive interest rates on FCNR deposits. In this article, we will discuss the latest FCNR interest rates offered by SBI and the benefits of investing in FCNR deposits.

What are the Latest FCNR Interest Rates Offered by SBI?

SBI offers FCNR deposits in six major currencies - US Dollar (USD), Great Britain Pound (GBP), Euro (EUR), Japanese Yen (JPY), Canadian Dollar (CAD), and Australian Dollar (AUD). The interest rates vary depending on the currency and the tenure of the deposit. Here are the latest interest rates offered by SBI:

Currency Tenure Interest Rate

USD 1 year to less than 2 years 0.83%

2 years to less than 3 years 0.93%

3 years to less than 4 years 1.03%

4 years to less than 5 years 1.28%

5 years and up 1.57%

GBP 1 year to less than 2 years 0.22%

2 years to less than 3 years 0.32%

3 years to less than 4 years 0.42%

4 years to less than 5 years 0.67%

5 years and up 0.97%

EUR 1 year to less than 2 years 0.01%

2 years to less than 3 years 0.11%

3 years to less than 4 years 0.21%

4 years to less than 5 years 0.46%

5 years and up 0.76%

JPY 1 year to less than 2 years 0.01%

2 years to less than 3 years 0.01%

3 years to less than 4 years 0.01%

4 years to less than 5 years 0.01%

5 years and up 0.01%

CAD 1 year to less than 2 years 1.33%

2 years to less than 3 years 1.43%

3 years to less than 4 years 1.53%

4 years to less than 5 years 1.78%

5 years and up 2.07%

AUD 1 year to less than 2 years 0.78%

2 years to less than 3 years 0.88%

3 years to less than 4 years 0.98%

4 years to less than 5 years 1.23%

5 years and up 1.52%

Why Invest in FCNR Deposits?

1. Attractive Interest Rates: FCNR deposits offer higher interest rates compared to other fixed deposit schemes in India. This is because the deposits are made in foreign currency, which carries higher risk and volatility.

2. Currency Risk Hedging: FCNR deposits provide a natural hedge against currency risk. NRIs can deposit their foreign currency earnings in these accounts and earn interest in the same currency. This eliminates the need for currency conversion, which can be risky and expensive.

3. Tax Benefits: FCNR deposits are exempt from Income Tax in India. However, NRIs have to pay taxes in their country of residence as per their local tax laws.

4. Flexible Tenure: FCNR deposits have flexible tenure options ranging from 1 year to 5 years and above. NRIs can choose the tenure that suits their investment goals and risk appetite.

5. Easy Repatriation: NRIs can easily repatriate their FCNR deposits along with the accrued interest to their foreign bank accounts without any restrictions.

In conclusion, FCNR deposits are a lucrative investment option for NRIs who want to earn higher returns on their foreign currency deposits. SBI offers competitive interest rates on FCNR deposits, which makes them a popular choice among NRIs. However, investors should carefully evaluate their investment goals and risk appetite before investing in FCNR deposits.