$17.4 billion flows into FCNR(B) deposits: Which bank offers the best 3-year FCNR(B) FD rate—SBI, PNB, HDFC Bank, ICICI Bank or Canara Bank?

Interest in Foreign Currency Non-Resident (FCNR) deposits has picked up after the Reserve Bank of India (RBI) introduced a concessional swap facility for banks to mobilise fresh foreign currency deposits. The scheme, available until September 30, 2026, has already attracted sizable inflows, with banks mobilising over USD 17.4 billion through FCNR(B) deposits as of July 17, 2026, as per RBI data. Investors can invest and withdraw FCNR(B) deposits in foreign currencies such as US dollar, Canadian dollar, Australian dollar, British Pound, Euro and Japanese Yen. Interest earned is also exempt from tax in India.

If you are a Non-Resident Indian (NRI), Overseas Citizen of India (OCI) or a Person of Indian Origin (PIO) looking to invest in FCNR(B), here's a look at the 3-year FCNR(B) USD fixed deposit (FD) interest rates offered by State Bank of India (SBI), Punjab National Bank (PNB), HDFC Bank, ICICI Bank, Canara Bank and Axis Bank.

SBI 3-year FCNR (B) interest rate

State Bank of India (SBI) offers an interest rate of 5.25% on its 3-year FCNR (B) FD for deposits of up to USD 1 million. For deposits above USD 1 million, the bank offers a 5.50% rate for tenures of 3 years to less than 4 years.

PNB 3-year FCNR (B) interest rate

Punjab National Bank offers an interest rate of 6.40% on FCNR (B) fixed deposits of 3 years to less than 4 years.

HDFC Bank 3-year FCNR (B) interest rate

HDFC Bank offers an interest rate of 6% on FCNR (B) FDs of 3 years to less than 4 years.
HDFC Bank says FCNR (B) deposits booked for 3 to 5 years tenure will have a lock-in period of 1 year. This will be applicable to deposits booked between June 10, 2026, to September 30, 2026.

Axis Bank 3-year FCNR (B) interest rate

Axis Bank offers an interest rate of 6% on FCNR (B) deposits of 3 years to less than 4 years.

ICICI Bank 3-year FCNR (B) interest rate

ICICI Bank offers an interest rate of 6% on FCNR (B) deposits of 3 years to less than 4 years.

Canara Bank 3-year FCNR (B) interest rate

Canara Bank offers an interest rate of 6.50% on FCNR (B) deposits with tenures of 3 years to less than 4 years.

Bank	FCNR (B) Deposit Tenure	Interest Rate
Punjab National Bank (PNB)	Above 3 years but less than 4 years	6.40%
HDFC Bank	Above 3 years but less than 4 years	6.00%
Axis Bank	Above 3 years but less than 4 years	6.00%
ICICI Bank	More than 3 years and less than 4 years	6.00%
State Bank of India (SBI)	Above 3 years but less than 4 years	5.25% (up to USD 1 million); 5.50% (above USD 1 million)

What is an FCNR (B) Account?

A Foreign Currency Non-Resident (FCNR) account allows an NRI, OCI or PIO to keep a fixed deposit in India in freely convertible foreign currencies for a period of one to five years.

FCNR (B) deposits are available for tenures from one year to five years. Interest earned is exempt from income tax in India, and both principal and interest can be repatriated, subject to applicable regulations.

According to the SBI Bank website, “A key benefit of FCNR (B) accounts is the unrestricted repatriation of both the principal and interest overseas. Account holders can seamlessly transfer their funds back to their residing country without any limitations, ensuring financial flexibility.”