NRI FD Calculator India 2026 — NRE vs NRO vs FCNR
Compare NRE, NRO, and FCNR fixed deposit returns side by side. NRE and FCNR interest is tax-free in India; NRO interest is taxed at 30% + surcharge + cess (reducible via DTAA). Analyze currency risk between NRE (INR) and FCNR (USD/GBP/EUR), find the break-even depreciation rate, and optimize NRO tax with DTAA rates for US, UK, Canada, UAE, Singapore, Australia, and Germany. Based on RBI FEMA 1999, Income Tax Act Section 10(4)(ii), and RBI Master Direction on NRI Deposits for FY 2025-26.
How to Use This Calculator
NRE vs NRO vs FCNR tab
Enter your deposit amount in USD, the current INR/USD exchange rate, interest rates for NRE, NRO, and FCNR FDs, and the tenure. The calculator computes gross interest earned, tax deducted (NRE and FCNR: nil; NRO: 30% + surcharge + 4% cess), net return, maturity value, and repatriation rules for each account type. Use this to decide which NRI FD gives you the best after-tax return.
Currency Risk tab
Compare NRE FD (INR deposit) against FCNR FD (USD deposit) to understand the impact of INR depreciation on your USD returns. Enter your expected annual depreciation rate and the calculator shows your effective USD return for each option, plus the break-even depreciation rate where both options give equal returns. If INR weakens more than the break-even, FCNR wins; if less, NRE wins.
Tax Optimization tab
See how much tax you can save on NRO FD interest by claiming DTAA (Double Taxation Avoidance Agreement) benefits. Select your country of residence to see the applicable DTAA rate versus the standard 31.2% effective TDS. The calculator shows exact savings and the documents required (Form 10F, Tax Residency Certificate).
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The Formula
NRI FD interest is calculated using compound interest. NRE and NRO FDs compound quarterly; FCNR FDs compound semi-annually.
A = P × (1 + r/n)n×t
Interest = A − P
Where:
P = Principal (deposit amount)
r = Annual interest rate (decimal)
n = Compounding frequency (4 for quarterly, 2 for semi-annual)
t = Tenure in years
NRO Tax Calculation:
TDS = Interest × 30%
Surcharge = TDS × applicable rate (varies by income slab)
Cess = (TDS + Surcharge) × 4%
Effective TDS ≈ Interest × 31.2% (for income >₹15L)
Example ($50,000 deposit, 3 years, ₹84/$):
Deposit in INR = $50,000 × 84 = ₹42,00,000
NRE FD @ 7%: Interest = 42,00,000 × [(1 + 0.07/4)12 − 1] = ₹9,60,389 (tax-free)
NRO FD @ 7%: Interest = ₹9,60,389 − TDS ₹2,99,641 = ₹6,60,748 net
FCNR @ 5% (USD): Interest = 50,000 × [(1 + 0.05/2)6 − 1] = $8,010 (tax-free)
Break-Even Depreciation (NRE vs FCNR):
d = [(NRE Maturity INR) / (FCNR Maturity USD × Current Rate)]1/t − 1
If actual depreciation > d, FCNR wins. If < d, NRE wins.
Note: Actual bank calculations may vary slightly due to day-count conventions (365/365 or 365/366 for leap years). Rates shown are indicative for March 2026 and subject to change.
Example
Rajesh — NRI software engineer in California, $50,000 to invest in India FD
Rajesh (34) works in San Francisco and wants to park $50,000 in an Indian fixed deposit for 3 years. He is comparing NRE, NRO, and FCNR options at SBI. The current exchange rate is ₹84/$.
Step 1: NRE vs NRO vs FCNR Comparison
Step 2: Currency Risk Analysis
Step 3: DTAA Optimization (US)
Rajesh's decision: Since he expects INR to weaken ~3% annually (historical average), FCNR is the safer choice for his $50K. For his NRO account (which holds Indian rental income), he files Form 10F with his US Tax Residency Certificate to reduce TDS from 31.2% to 15%, saving ₹1.55 lakh on a 3-year FD.
NRI FD Rates — Major Banks (March 2026)
NRE vs NRO vs FCNR FD — Rate Comparison Table
| Bank | NRE FD (1-3 yr) | NRO FD (1-3 yr) | FCNR USD (1-3 yr) |
|---|---|---|---|
| SBI | 6.50–7.10% | 6.50–7.10% | 4.50–5.50% |
| HDFC Bank | 6.60–7.25% | 6.60–7.25% | 4.75–5.25% |
| ICICI Bank | 6.50–7.20% | 6.50–7.20% | 4.50–5.00% |
| Axis Bank | 6.50–7.15% | 6.50–7.15% | 4.25–5.00% |
| Bank of Baroda | 6.25–7.05% | 6.25–7.05% | 4.00–4.75% |
| Kotak Mahindra | 6.50–7.20% | 6.50–7.20% | 4.50–5.25% |
Rates are indicative for March 2026 and vary by tenure, deposit amount, and whether the deposit is fresh or a renewal. NRE and NRO FD rates are generally the same as domestic FD rates at most banks. FCNR rates vary by currency. Source: Bank websites.
DTAA TDS Rates by Country — Interest Income
| Country | Normal TDS | DTAA Rate | DTAA Article | Key Document |
|---|---|---|---|---|
| United States | 30% + cess | 15% | Art. 11(2) | TRC + Form 10F + W-8BEN |
| United Kingdom | 30% + cess | 15% | Art. 12(2) | TRC + Form 10F |
| Canada | 30% + cess | 15% | Art. 11(2) | TRC + Form 10F |
| UAE | 30% + cess | 12.5% | Art. 11(2) | TRC from FTA + Form 10F |
| Singapore | 30% + cess | 15% | Art. 11(2) | TRC from IRAS + Form 10F |
| Australia | 30% + cess | 15% | Art. 11(2) | TRC from ATO + Form 10F |
| Germany | 30% + cess | 10% | Art. 11(2) | TRC from Finanzamt + Form 10F |
DTAA rates apply only to NRO FD interest (NRE and FCNR are already tax-free). To claim DTAA benefit, submit documents to your bank before maturity. India has DTAAs with 90+ countries; check the relevant treaty for your country.
Key Concepts for NRI Fixed Deposits
NRE FD — rules, eligibility, and tax treatment
NRE (Non-Resident External) FD is for NRIs who want to park their foreign earnings in India in INR.
- Deposit source: Foreign earnings remitted to India, converted to INR at prevailing rate
- Tax: Interest is completely TAX-FREE in India under Section 10(4)(ii) of the Income Tax Act
- Repatriation: Both principal and interest are freely repatriable without any limit
- Tenure: 1 year to 10 years
- Joint account: Cannot be opened jointly with a resident Indian. Can be joint with another NRI.
- Currency risk: Yes — deposit is converted to INR; if INR weakens, USD value of maturity drops
- On return to India: NRE FD must be redesignated as a resident FD. Interest earned after redesignation is taxable.
- Premature withdrawal: Allowed after minimum lock-in of 1 year; penalty of 0.5-1% applies at most banks
NRO FD — rules, TDS, and repatriation limits
NRO (Non-Resident Ordinary) FD is for Indian-sourced income that NRIs earn in India.
- Deposit source: Indian income (rent, pension, dividends, capital gains) or foreign remittances
- Tax: Interest is TAXABLE. Bank deducts TDS at 30% + applicable surcharge + 4% cess (~31.2% effective)
- DTAA relief: Lower TDS rate available if your country has a DTAA with India (e.g., US: 15%, UAE: 12.5%, Germany: 10%)
- Repatriation: Limited to $1 million per financial year after tax payment, with CA certificate (Form 15CB) and Form 15CA
- Joint account: Can be opened jointly with a resident Indian
- Tenure: 7 days to 10 years
- On return to India: NRO account can be redesignated as a regular savings/FD account
FCNR FD — currencies, tenure limits, and tax treatment
FCNR (Foreign Currency Non-Resident) FD lets NRIs keep deposits in foreign currency, eliminating exchange risk.
- Permitted currencies: USD, GBP, EUR, JPY, CAD, AUD (6 currencies as per RBI)
- Tax: Interest is TAX-FREE in India under Section 10(4)(ii)
- Repatriation: Fully repatriable — both principal and interest, in foreign currency
- Tenure: Minimum 1 year, maximum 5 years (per RBI rules — shorter than NRE/NRO)
- Compounding: Semi-annual (vs quarterly for NRE/NRO)
- Currency risk: None — deposit and maturity are both in foreign currency
- Rates: Lower than INR FD rates (4.5-5.5% for USD vs 6.5-7.1% for NRE). Rates vary by currency; JPY is lowest (~1.5%), USD is highest.
- Best for: NRIs who plan to eventually repatriate and want zero currency risk. Also useful as collateral for loans in India.
DTAA — how to claim lower TDS on NRO FD interest
India has Double Taxation Avoidance Agreements (DTAAs) with 90+ countries. For NRO FD interest, DTAA can reduce TDS from ~31.2% to as low as 10% (Germany).
Steps to claim DTAA benefit:
- Obtain a Tax Residency Certificate (TRC) from the tax authority of your country of residence (IRS for US, HMRC for UK, CRA for Canada, FTA for UAE, IRAS for Singapore)
- File Form 10F on the Indian Income Tax e-filing portal (incometax.gov.in)
- Submit TRC, Form 10F, and a self-declaration to your Indian bank branch or NRI services team
- Bank applies the lower DTAA TDS rate on your NRO FD interest going forward
Important: If the bank has already deducted TDS at 30%, you can claim a refund of the excess when filing your Indian ITR. But it is better to submit documents upfront to avoid the refund process.