If you live in the United States or Canada and send money to India, there’s a limited-time opportunity you may want to consider.
The Reserve Bank of India (RBI) is allowing banks to offer higher interest rates on Foreign Currency Non-Resident (FCNR) deposits for a short period, starting June 10, 2026, through September 30, 2026 (timelines may vary by bank).
If you’re sending money home to build something bigger, i.e., support family, grow savings, or plan ahead, this could be a chance to make every dollar go further.
What is an FCNR account
An FCNR (Foreign Currency Non-Resident) account is a type of fixed deposit designed for Non-Resident Indians (NRIs).
It lets you hold your money in foreign currencies, such as:
- US dollar (USD)
- Canadian dollar (CAD)
- British pound (GBP)
- Australian dollar (AUD)
With an FCNR deposit, you can:
- Earn interest on your savings
- Keep your money in foreign currency
- Avoid exchange rate changes during the deposit period
- Move money between your overseas account and India more easily
In simple terms, if you send USD from the US, your deposit can stay in USD while earning interest in India.
Here’s why it stands out:
- Higher interest rates: Many banks are offering better-than-usual rates during this period, depending on the currency and duration.
- Tax-free interest in India: The interest you earn is not taxed in India, similar to NRE (Non-Resident External) account.
- Protection from currency changes: Because your money stays in foreign currency, you’re not exposed to exchange rate ups and downs during the deposit period.
Flexible ways to fund your deposit
You can:
- Transfer money from your NRE account, or
- Send money directly from abroad
What interest rates to expect
Interest rates can vary depending on:
- The bank you choose
- The currency you deposit
- How long you keep the money in the account
In many cases:
- Rates may range from around 3% to over 7%
- Longer deposit periods (such as 3 to 5 years) may offer better returns
Since rates differ across banks, it’s worth comparing your options before you decide.
Banks offering FCNR deposits
Several major Indian banks are offering FCNR deposits, including:
- State Bank of India
- HDFC Bank
- ICICI Bank
- Axis Bank
- Central Bank of India
- AU Small Finance Bank
- Karur Vysya Bank
Each bank sets its own interest rates and minimum deposit requirements, so checking details directly with your bank is important.
Who this is best for
Whether you’re helping your family back home, setting aside savings for the future, or planning your next move, how you send money can make a difference.
- You live in the US or Canada and want to send money to India
- You’re planning to send a larger amount home
- You want to earn interest without converting your money into INR
- You prefer a stable and predictable return
How to get started
To take advantage of this opportunity, you’ll first need to send money to India. Once your money reaches India, you can place it into an FCNR deposit with your chosen bank.
How Western Union can help
Western Union makes it easy to get your money where it needs to go.
You can:
- Send money to India quickly and securely
- Transfer funds directly from the US or Canada
- Transfer money to your bank account in India
- Start the process from your phone or computer
This makes it easier to act within the limited-time window and set up your FCNR deposit.
Important things to keep in mind
Before you decide, remember:
- This is a limited-time opportunity, ending around September 30, 2026
- Interest rates can change during this period
- Minimum deposit amounts and terms vary by bank
- Available currencies may differ
Always confirm the latest details directly with your bank.
If you’re already planning to send money to India, this could be a good time to make that transfer. With higher interest rates, tax-free earnings in India, and the ability to keep your money in foreign currency, FCNR deposits offer a simple way to get more value from your savings.
Turn today’s transfer to India something more.
Start your transfer with Western Union and explore FCNR deposit options with your and your recipient’s bank.
