What is FCNR Account? (FCNR Full Form)

FCNR stands for Foreign Currency Non-Resident Account. If you are an NRI and wish to maintain a Fixed Deposit Account in India, you can opt for an FCNR Account that allows you to save money earned overseas in Foreign Currency. Mostly banks book FCNR deposits in the following currencies.

• US Dollars
• Pounds Sterling
• Euro
• Japanese Yen
• Australian Dollars
• Canadian Dollars

FCNR Accounts are an excellent investment option for NRIs if you wish to retain your money in foreign currency and earn good returns at the same time. Since your money will be held in foreign denomination, you can be saved the risk of exchange rate fluctuations. This also ensures that you earn higher, risk-free returns. Also, if you are unsure about where to save or invest your hard -earned money, you can opt for an FCNR Account.

What are the Features of an FCNR Account?

Here are some features of an FCNR Account that make it an extremely feasible option to invest and maintain funds in India-

• FCNR Accounts are Term Deposit Accounts and not a Savings Account. Premature withdrawal is allowed by Banks but Interest is paid only post completion of 1 year.
• You can open an FCNR Account by transferring money from your existing Non-Resident External (NRE) Account.
• The interest you earn on your deposits on FCNR Accounts is tax-free, e., it is not taxable in India.
• The Principal amount of your FCNR deposit and the interest you earn thereon is fully repatriable, e., it is completely transferable.
• You can also avail an overdraft facility over your FCNR Term Deposit Account.

Therefore, if you are looking for an option to save your money in foreign denominations, FCNR Accounts are an excellent choice.

Looking to open your FCNR Account? Click here to get started! You can read more on how to open an NRI Account here.

* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.