Top Banks Offering RFC Fixed Deposit Schemes
Non-Resident Indians (NRI) having funds in foreign currency can earn high returns by investing in a special term deposit scheme, RFC fixed deposit.
Many banks in India offer an excellent option to Indians who have returned to the resident country and need to manage their earnings in foreign currency.
Here are the top Indian banks that offer RFC fixed deposit schemes to NRIs.
Features of RFC Account
The features of RFC fixed deposit accounts depend on the financial institutions. Below is the list of common features:
- RFC account can be opened with any Indian bank.
- The account can be either a savings or a fixed deposit account.
- The account can be opened singly or jointly with any ‘former or survivor’ resident relative.
- RFC account in any Indian bank accepts funds received from abroad in the form of salary, pension, earnings from business, returns on investment, or through sale of assets.
- The foreign currency accepted as a deposit varies depending upon the bank.
- RFC account deposits are usable for investment abroad.
- The deposits can be used in a freely convertible currency.
- The deposit amount will be converted to Indian rupee as per the current rate.
- Funds held in an existing Non-Resident External Account (NRE), or Foreign Currency Non-Resident Account (FCNR) account can be transferred to another bank.
- Offers nomination facility and a resident or non-resident can be a nominee.
Eligibility
The eligibility criteria may vary depending upon the bank. Here are the most common eligibility criteria for opening an RFC fixed deposit account:
- Indian citizen residing outside India for employment, business, vocation, or studies.
- NRI returning to India after staying abroad for a continuous period of one year.
- NRI permanently settled in India since return.
- Person of Indian Origin (PIO) card or Overseas Citizen of India (OCI) card for PIO or OCI candidates.
Note: All the self-attested KYC documents mentioned in the application form should be submitted.
Documentation
The documentation process may vary from bank to bank. Here is the list of common documents required to open an RFC fixed deposit account:
- Correctly filled application form for RFC account
- Self-attested photocopy of Indian passport (the page consisting personal details and passport details)
- Permanent Account Number (PAN)- if not available, individual can provide Form 60
- Copy of Visa (applicable for both expired and valid visas)
- Immigration stamp (including last departure and arrival page)
- Address proof for Indian residence
- Original KYC documents
Top Banks Offering RFC Fixed Deposits
Here is the list of the top five banks offering RFC fixed deposits.
HDFC Bank RFC fixed deposits
HDFC bank has specially designed this term deposit scheme for Non-Resident Indians (NRI) by allowing them to deposit their foreign currencies earned abroad in Resident Foreign Currency Saving Account for a fixed tenure. Here are more details on RFC fixed deposit offered by HDFC bank.
Below are the features and a brief overview of the RFC Fixed Deposit scheme offered by HDFC bank:
- Offers fixed deposit in four currencies
- Protects the deposit amount from exchange rate fluctuations
- Offers tax benefits on interest earned on declaration of Resident
- Tax exemption not offered on Not Ordinary Resident (RNOR) status
The interest rates for HDFC Bank RFC fixed deposits are mentioned in the table below:
Tenure | GBP | USD | EURO | JPY | Effective Date |
Less than 29 days | 0.01% | 0.01% | 0.01% | 0.01% | 1 December 2018 |
30 days to 3 months | 0.01% | 0.01% | 0.01% | 0.01% | 1 December 2018 |
3 months 1 day to 6 months | 0.01% | 0.01% | 0.01% | 0.01% | 1 December 2018 |
6 months 1 day to less than 1 year | 0.01% | 0.01% | 0.01% | 0.01% | 1 December 2018 |
1 year to less than 2 years | 4.65% | 5.35% | 2.50% | 0.01% | 25 March 2025 |
2 years to less than 3 years | 0.01% | 4.30% | 0.01% | 0.01% | 1 March 2025 |
3 years only | 0.01% | 4.15% | 0.01% | 0.01% | 1 March 2025 |
ICICI Bank RFC fixed deposits
ICICI bank offers safe and high returns to its NRI customers. Customers have the freedom to transfer their funds back to the NRE account after regaining the NRI status, if they invest under this scheme offered by the ICICI bank. Here are more details on ICICI bank RFC Fixed Deposit scheme.
The following are the features and a brief overview of the foreign currency term deposit scheme offered by ICICI bank:
- Banks offer a choice of three foreign currencies such as USD, GBP, and JPY
- Users can withdraw cash in rupees from their branch
- Facilitates joint account holding
- The balance including the interest earned can be transferred to a foreign account
- Risk-free conversion of foreign exchange into rupees
The interest rates for ICICI Bank RFC fixed deposits are mentioned in the table below:
Tenure | USD | GBP |
Overnight and up to 30 days | **** | **** |
30 days to less than 6 months | 0.75% | 0.25% |
6 months to less than 1 year | 1.00% | 0.50% |
12 months to < 24 months | 5.00% | 4.75% |
>= 24 months to < 36 months | 4.00% | 4.00% |
36 months | 3.65% | NA |
Note: The interest rates mentioned in the table above are effective from 13 February 2025.
SBI RFC Fixed Deposits
State Bank of India offers all its NRI customers the opportunity to earn high returns on their foreign currency funds by depositing the amount in this term deposit scheme for a maximum of 3 years. The section below provides details about the SBI RFC fixed deposit scheme:
An overview of the scheme along with its features are mentioned below:
- Accounts can be opened in three foreign currencies such as USD, GBP, and EUR.
- Balance held in NRE or FCNR deposit account can be transferred to RFC account after maturity.
- No interest earned on premature withdrawal before one year.
- Interest will be paid 1.00% less the applicable rate, if withdrawn after completing one year.
- Local payments and investment in India can be made using the amount.
- Interest earned is taxable.
- Two account types are permissible and those are term deposit and special term deposit.
- Principal and interest will not incur any exchange loss and are payable in any foreign currencies.
The interest rates for SBI RFC fixed deposits are mentioned in the table below:
Tenure | USD | GBP | EURO |
1 year to less than 2 years | 5.50% | 4.75% | 3.50% |
2 years to less than 3 years | 4.50% | 4.65% | 1.50% |
3 years | 4.25% | 3.65% | 1.50% |
Note: The interest rates mentioned in the table above are effective from 15 March 2025.
Canara Bank RFC fixed deposits
Residents in India can open an RFC account in Canara bank to earn high returns from foreign exchange acquired or received. The funds can be in any form such as LIC claim, superannuation benefit from overseas employer, converting asset acquired, inherited or gifted by other person, and others. Here are a few additional details about the scheme offered by Canara bank:
Here is the list of features and overview of the Canara bank RFC fixed deposit:
- Accounts can be opened in five foreign currencies such as USD, GBP, EUR, CAD, and AUD.
- Cheque books will not be issued for savings and current account.
- Authority letters issued by the account holders will be used for all banking operations.
- Minimum tenure is one month
- The tenure can be less than a month or even one week for a minimum deposit of $250,000 or equivalent.
The interest rates for Canara Bank RFC fixed deposits are mentioned in the table below:
Tenure | USD<100000 | USD>=100000 | GBP | EUR | CAD | AUD |
Savings Bank | 0.10% | 0.10% | 0.10% | NIL | NIL | NIL |
1 month & above but less than 3 months | 0.10% | 0.10% | NA | NA | 0.10% | 0.10% |
3 months & above but less than 6 months | 0.10% | 0.10% | NA | NA | 0.10% | 0.10% |
6 months & above but less than 1 year | 0.10% | 0.10% | NA | NA | 0.10% | 0.10% |
1 year & above but less than 2 years | 5.45% | 5.55% | 4.80% | 3.00% | 4.00% | 4.00% |
2 years & above but less than 3 years | 4.00% | 4.00% | 3.00% | 2.00% | 3.50% | 3.50% |
3 years only | 3.70% | 3.70% | 2.50% | 1.50% | 3.00% | 3.00% |
Note: The interest rates mentioned in the table above are effective from 12 March 2025.
Axis Bank RFC fixed deposits
NRIs who have returned India can invest their foreign currency deposits under this scheme offered by Axis bank to earn high returns without foreign exchange conversion risk. Here are further details of this scheme:
The following are the features of Axis bank RFC fixed deposit:
- Accounts can be opened in five foreign currencies such as USD, GBP, AUD, CAD, and EUR.
- The bank offers currency deposit in any foreign currency.
- Customers can avail high interest rates on this type of deposit.
- Bona fide money transfer outside India is permitted through normal banking channels.
- Payment can be done in foreign currency within India with RBI permission.
- No penalties for premature withdrawal on deposit below $1 million (USD), €1 million, £750,000, $1.5 million (AUD), and $1.5 million (CAD).
- Credits permitted on transfer from RIEEE account, from NRE or FCNR account, and from other RFC accounts.
The interest rates for Axis Bank RFC fixed deposits are mentioned in the table below:
Tenure | USD(Less than 1 million) | USD (1 million and above) | GBP | EURO | AUD | CAD |
30 days to less than 3 months | 0.15% | 0.15% | 0.15% | 0.01% | 0.30% | 0.35% |
3 months to less than 6 months | 0.25% | 0.25% | 0.15% | 0.01% | 0.30% | 0.35% |
6 months to less than 1 year | 0.30% | 0.30% | 0.15% | 0.01% | 0.30% | 0.35% |
1 year to less than 2 years | 5.80% | 5.80% | 4.00% | 2.90% | 3.70% | 4.20% |
2 years to less than 3 years | 4.30% | 4.30% | 3.75% | 0.01% | 3.75% | 3.50% |
3 years to less than 4 years | 4.10% | 4.10% | 2.45% | 0.01% | 3.80% | 3.45% |
4 years to less than 5 years | 4.10% | 4.10% | 2.45% | 0.01% | 4.00% | 3.35% |
5 years | 4.10% | 4.10% | 2.45% | 0.01% | 4.05% | 3.30% |
Note: The interest rates mentioned in the table above are effective from 13 March 2025.
FAQs on RFC Fixed Deposit
- What is the minimum balance of an RFC account?
According to the RBI guidelines, foreign exchange up to $2,000 is permitted in India in the form of traveler's cheque or in cash notes. The maximum and minimum deposit amount in RFC fixed deposit account depends entirely on the bank.
- Are the interests earned on RFC account taxable in India?
Yes, interest earned is taxable in India, but it is non-taxable for individuals holding a Resident but Not Ordinary Resident (RNOR) status.
- Can an individual maintain foreign account after becoming a permanent resident of India?
Yes, foreign accounts opened or inherited when a person was a non-resident can be maintained after being an Indian resident.
- Are RFC savings account and RFC (D) account the same?
No, both are different. RFC saving account earns interest while the latter is a current account which does not yield any interest.
- Can I renew my RFC fixed deposit account?
Yes, you may renew your RFC fixed deposit account depending upon the bank.
- Where should I open an RFC fixed deposit account?
You can open RFC fixed deposit account in any Indian bank that comes with ease withdrawal option, strong overseas presence, and good credibility.
- Can I open an RFC fixed deposit account with my step-parents?
Yes, you can open an RFC fixed deposit account with any of your resident relatives.
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