Latest Kotak Bank FCNR Rates 2026
The table shows you the current FCNR Rates 2026 offered by Kotak Bank, effective from 1st June 2026:
| FCNR (B) Deposit |
USD (< 0.5 mio) |
GBP |
EURO |
AUD |
SGD |
| >=1 Year - Less than 2 Years |
4.40% |
4.40% |
4.15% |
2.75% |
4.50% |
| 2 Year - Less than 3 Years |
3.70% |
3.70% |
3.85% |
1.25% |
4.20% |
| 3 Year - Less than 4 Years |
3.40% |
3.40% |
3.00% |
1.25% |
4.00% |
| 4 Year - Less than 5 Years |
3.20% |
3.20% |
No Quote |
No Quote |
No Quote |
| 5 Year Only |
3.00% |
3.00% |
No Quote |
No Quote |
No Quote |
*Kotak Mahindra Bank FCNR(B) Deposit Interest Rates w.e.f 1st June 2026
Penalty on premature withdrawal of FCNR(B) deposits (withdrawn after one year):
| Premature Penalty |
USD |
GBP |
EURO |
YEN |
AUD |
SGD |
| < 0.5 mio |
>=0.5 mio |
| 0.25% |
0.25% |
0.25% |
0.00% |
0.00% |
0.25% |
*The penalty for premature withdrawal of Kotak FCNR(B) deposits is (withdrawn after one year). The FCNR(B) Deposit Interest Rates w.e.f 1st June 2026*
Features of Kotak Mahindra Bank FCNR Rates
With the competitive interest rates of the Kotak Mahindra FCNR(B)account, it has several features:
-
Compounding:
Interest is compounded every 180 days (half-yearly). This consistent compounding frequency helps the NRI investor maximize their returns over the long term.
-
Minimum Tenure:
The amount must be kept for a minimum of one year to earn any interest on the FD. This ensures the account serves its purpose as a medium-to-long-term Kotak savings account.
-
Maximum Tenure:
FCNR deposits at Kotak Mahindra Bank can be kept for a maximum of five years. This range provides flexibility, allowing NRIs to align the deposit maturity with their financial planning goals.
-
Tax Exemption:
Both the principal amount and the FCNR deposit interest earned are exempt from Income Tax in India.
Factors Affecting Kotak FCNR Rates
Here are some of the pointers where the investing amount can change its interest rates or be affected due to these circumstances:
-
Global Benchmark Rates:
The primary influence is the interest rate policy of the foreign central bank. The FCNR rate is benchmarked to these global rates (like SOFR/Swap rates).
-
RBI Guidelines:
The Reserve Bank of India (RBI) sets the maximum rate ceiling that the bank can offer, calculated as a spread over the global benchmark.
-
Currency & Tenure:
The rate is specific to the currency (USD, GBP, EURO, etc.) and the chosen deposit tenure (1 to 5 years). Shorter tenures (1-2 years) often carry the highest rates.
-
Deposit Amount:
Banks may offer different rates for deposits below vs. above a certain large threshold (e.g.,0.5 million USD).
Wrapping Up
The Kotak Mahindra Bank FCNR(B) Deposit is a highly competitive and strategic investment vehicle for Non-Resident Indians. This type of FCNR account successfully mitigates foreign exchange risk by allowing deposits in major currencies (USD, GBP, EURO, AUD, SGD) and provides attractive tax-exempt returns. With current rates up to 4.40% p.a., compounded half-yearly, and flexible tenures of 1 to 5 years, it is a secure and fully repatriable option for NRIs looking to earn a stable income in India.
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