Foreign Currency Non Resident Interest rates, commonly referred to as FCNR Interest Rates, are rates offered by banks to Non Resident Indians in Singapore. Several top Indian banks that have their operations in Singapore, including ICICI and Indian Bank, offer FCNR rates to NRIs in Singapore. The FCNR option is basically a fixed deposit account that these banks offer. The rates are competitive, and flexible tenure options are available to NRIs. Let’s take a look at some popular FCNR packages offered by some popular Indian banks in Singapore.
Features and benefits of FCNR Rates
FCNR rates offered by banks to NRIs in Singapore are much higher than rates offered by a spate of other banks in Singapore. FCNR rates are highly competitive as well.
- The minimum tenure associated with FCNR accounts is 1 year. A maximum tenure of 5 years is permissible.
- In cases where there is premature withdrawal of funds before the completion of the 1-year period, no interest will be earned on the deposit.
- The interest earned on the deposit will be credited on a monthly basis to the registered bank account.
- Besides Indian banks offering FCNR rates to Singaporean NRIs, top Singaporean banks including OCBC and DBS also offer FCNR deposits.
- FCNR deposits are available in a range of currencies apart from the Singapore Dollar. Common foreign currencies include the Pound, Australian Dollar, Euro, Japanese Yen and Chinese Yuan.
- In most cases, these rates are subject to change on the first date of every month.
- Note that FCNR deposits are not taxable in India. Tax on interest earned on the deposit amount has to be paid in Singapore itself.
- In order to open an FCNR account, customers are required to meet the minimum deposit amount. In most cases, accounts with deposits as less as SG$1,000 can be opened.
- Customers who have invested in an FCNR account can opt for automatic renewal of their account after their account hits maturity.
FCNR Rates of top banks in Singapore
As mentioned earlier, there are several top banks offering FCNR deposit accounts to Singaporean NRIs. Let’s take a look at some top banks and what you can expect from their respective products:
DBS FCNR Deposits
- DBS allows you to create an FCNR account in 9 different currencies including the SGD. Popular foreign currencies that you can invest in include the US Dollar, Australian Dollar, Japanese Yen, Hong Kong Dollar, Chinese Yuan, Pound Sterling, Euro, and the Canadian Dollar.
- Tenures for the deposits range from 1 year to 5 years. Premature withdrawals will not attract any interest (this only holds good for accounts where premature withdrawal takes place before the 1-year period).
- You can access your account 24/7 through your internet banking credentials.
- The interest earned on the deposit amount, along with the deposit amount, are repatriable.
- The minimum deposit amount is US$ 1,000. Once the account attains maturity, it can be auto-renewed.
SBI FCNR Deposits
- SBI also offers FCNR accounts and competitive interest rates on deposits.
- Tenures for these deposits can range from 1 year to 5 years. Note that the minimum tenure is 1 year. Withdrawals before the 1-year period will not earn any interest.
- You can keep track of your FCNR account at all times through your internet banking credentials.
- Currencies available under the bank’s FCNR offering include GBP, USD, EUR, CAD, AUD and JPY.
ICICI FCNR Deposits
- ICICI offers FCNR deposits in 9 different currencies, just like DBS. Popular currencies include JPY, AUD, USD and GBP.
- The interest earned on the deposit, and the deposit amount itself, are fully repatriable.
- Tenures for the deposits range from 1 year to 5 years.
- Amount earned as interest is not taxable in India. Deposits start from as low as US$ 1,000.
- The FCNR account also puts you in a better position to get different types of loans.
How to apply for an FCNR account?
You can apply for an FCNR by visiting the nearest branch of the bank (with which you wish to open an account). You will need to fill out an application form and submit your supporting documents, following which your application will be processed. You can also call up the bank’s hotline number to open an FCNR account.
Note that information provided in the documents needs to be authentic and consistent, failing which the bank will not permit you to open an account.
Some other popular banks offering FCNR options to NRIs in Singapore:
- Indian Bank
- Indian Overseas Bank
- Yes Bank
- IDBI Bank