How to open a Canara Bank FCNR account

Canara Bank offers FCNR accounts as term deposits to Non-Resident Indians (NRIs) to grow their earnings from abroad. Learn more about the benefits of a FCNR account with Canara Bank, interest rates and how to open an account.

Table of Contents
What is FCNR at Canara Bank? How to open an FCNR account in Canara Bank? Canara Bank FCNR rates How to transfer funds to Canara Bank FCNR account? Features and benefits of Canara Bank FCNR account

What is FCNR at Canara Bank?

A Foreign Currency Non Resident account, or FCNR for short, is a term deposit account Non-Residents or OCIs can open in India. Instead of being held in Indian rupees, the account is held in a foreign currency during the length of the term. The deposit earns an interest rate and can be renewed at maturity or transferred back to the resident country.

Canara Bank offers FCNR accounts within its NRI banking services. Account holders can open an account for up to five years. Canara Bank offers FCNR accounts in one of five global currencies.¹

How to open an FCNR account in Canara Bank?

To be eligible to open an FCNR account at Canara Bank, you must be a Non-Resident Indian or OCI card holder. You can be a new or existing customer to open an FCNR account with the bank.

Here are the steps to opening an FCNR account at Canara Bank:

1. Reach out to Canara Bank NRI services at nrihub@canarabank.com.
2. Complete the application opening form and provide supporting documents.
3. Provide additional details if requested by Canara Bank.
4. Fund the FCNR account with payment.

Check out the section later in this article for the documents you will likely need to provide with your application.

If you need to close your FCNR account for any reason, you can withdraw the funds from the account. You will need to forfeit any interest if the account is held for less than one year, or be penalized a 1% fee for accounts held more than 1 year.

Canara Bank FCNR rates

FCNR accounts can often provide attractive interest rates compared to banks overseas. The interest rates depend on the length of the term deposit and the currency in which the account is held.

Here are the interest rates for FCNR accounts at Canara Bank:²

Term length of 1 year to 2 years

USD	GBP	EUR	CAD	AUD
5.00%	4.25%	2.00%	4.30%	3.50%

Term length of 2 years to 3 years

USD	GBP	EUR	CAD	AUD
4.25%	3.00%	1.75%	4.10%	3.25%

Term length of 3 years to 4 years

USD	GBP	EUR	CAD	AUD
4.00%	3.00%	1.50%	3.85%	3.00%

Term length of 4 years to 5 years

USD	GBP	EUR	CAD	AUD
3.75%	3.00%	1.50%	3.50%	3.00%

Term length of 5 years

USD	GBP	EUR	CAD	AUD
3.50%	3.00%	1.50%	3.50%	3.00%

Rates updated as of April 18, 2023.

To note:

• Rates are subject to change.
• Rates for amounts above $1 million dollars differ.
• FCNR accounts can be converted to a Resident Foreign Currency account if you return to India and are no longer an NRI.

How to transfer funds to Canara Bank FCNR account

An FCNR account requires funding to start earning interest. The money must come from abroad in a foreign currency, but there is one exception. Here are the different ways to transfer money to an FCNR account in India:

• Online money transfer: Online money transfer services are often able to deposit money quickly and at a lower cost than other options. But shop around and compare different providers to find the one with low fees and an exchange rate without a mark-up.
• Wire transfer: Banks around the world are usually part of the SWIFT network which allows for international transfers. You can transfer money from your resident country bank account to India, but it can sometimes be slower or more expensive than other methods.
• Transfer from Non-Resident External (NRE) account: If you have an existing NRE in India, you can transfer the money to open an FCNR account. It can be an NRE account with Canara Bank or another bank in India. The funds will be exchanged into the foreign currency at Canara Bank’s prevailing rates.

For a quick and low-cost way to send money to India, check out Wise. Wise uses smart tech to make transfers simple and easy - right from your phone or computer. Wise transfers have one low upfront fee and use the mid-market exchange rate to help save you money. Transfers with Wise can often be in India within seconds on popular transfer routes.

If you are an NRI or OCI, take a look at the Wise multi-currency account to make money easier around the globe. With one single account, you can send, spend and hold multiple currencies including US dollars, British pounds, Euros and Indian rupees. And with a linked debit card, you can swipe like a local wherever you are in the world. Sign up for a free Wise account and see how much you can save the next time you travel.

• Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.
• The speed of transaction claim depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions

Features and benefits of Canara Bank FCNR account

One of the benefits of a FCNR account is that NRIs can earn interest on foreign currencies in India. Here are some benefits of opening a FCNR account with Canara Bank:³

• Interest earned on the account is tax-free in India.
• The principal and interest can be transferred back to your resident country.
• There can be up to 3 joint NRI account holders.
• The account is automatically renewed after 14 days from maturity.
• Canara Bank allows for loans against the FCNR deposit.

Canara Bank offers attractive interest rates on FCNR accounts, but account holders who are looking for a more digital-first experience may want to look at another Indian bank.

Who can open an FCNR account at Canara Bank?

A FCNR account can only be opened by a Non-Resident Indian (NRI) or Overseas Citizen of India (OCI).

A Non-Resident Indian is an Indian citizen that lives outside of India for more than 182 days in a calendar year.⁴

An OCI is someone who holds a foreign passport but is a child, grandchild or spouse of an Indian citizen.⁵

The account can be held jointly with up to four other NRIs or OCIs. An FCNR account can also be opened jointly with a Resident Indian on ‘former or survivor basis’ or acting as a power of attorney.

Resident Indians individually are not eligible to open a FCNR account at Canara Bank, but can consider a Resident Foreign Currency Account.

Documents required to open an FCNR account in Canara Bank

When you reach out to Canara Bank to open a FCNR account, you will be asked to provide documents with an application. Here are some of the documents you may need:

1. Copy of a passport.
2. Copy of an OCI card (if applicable).
3. Copy of a valid work visa or resident permit for NRIs.
4. A copy of a PAN card, Aadhaar card, Voter ID or driver’s license.
5. A passport sized photo.

You may be also asked to provide evidence of an overseas address, but check with Canara Bank NRI services.

Currencies available in Canara Bank FCNR account

Canara Bank offers FCNR accounts in the following currencies:

• US dollars
• Euros
• British pounds
• Canadian dollars
• Australian dollars

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Sources used for this article:

1. FCNR at Canara Bank
2. Interest rates
3. Various-deposit-schemes.pdf
4. Non Resident Indian
5. OVERSEAS CITIZENSHIP OF INDIA (OCI) CARDHOLDER

Cover photo by Kenny Eliason on Unsplash.