Top Banks Offering RFC Fixed Deposit Schemes
An RFC fixed deposit lets returning NRIs park foreign currency earnings with an Indian bank while continuing to earn interest in that same currency. HDFC Bank, ICICI Bank, SBI, Canara Bank, and Axis Bank all offer RFC fixed deposits with tenures of up to five years. This page compares their latest RFC FD interest rates and account features.
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.
- As per the Reserve Bank of India's FEMA guidelines, there are no restrictions on utilising RFC account funds either within India or abroad.
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.
- As per FEMA, 1999, an individual is treated as a resident of India for this purpose if they have resided in India for more than 182 days during the preceding financial year, subject to certain exceptions.
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 (p.a.) | 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 | 3.75% | 3.80% | 2.15% | 0.80% | 25 March 2025 |
2 years to less than 3 years | 0.01% | 3.55% | 0.01% | 0.01% | 1 March 2025 |
3 years only | 0.01% | 3.50% | 0.01% | 0.01% | 1 March 2025 |
Note: The interest rates are effective from 1 September 2026.
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 (p.a.) | 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 | 3.75% | 3.80% |
>= 24 months to < 36 months | 3.50% | 3.65% |
36 months | 3.25% | NA |
Note: The interest rates mentioned in the table above are effective from 1 September 2026.
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 (p.a.) | USD | GBP | EURO |
1 year to less than 2 years | 4.40% | 4.00% | 3.00% |
2 years to less than 3 years | 3.55% | 3.95% | 1.50% |
3 years | 3.35% | 3.00% | 1.50% |
Note: The interest rates mentioned in the table above are effective from 15 July 2026.
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 (p.a.) | 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 | 4.95% | 5.00% | 4.20% | 2.70% | 3.20% | 3.70% |
2 years & above but less than 3 years | 3.90% | 3.90% | 3.00% | 2.00% | 3.25% | 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 1 September 2026.
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 (p.a.) | 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 | 3.80% | 3.80% | 3.80% | 1.65% | 3.75% | 2.25% |
2 years to less than 3 years | 3.55% | 3.55% | 3.65% | 0.01% | 3.60% | 2.20% |
3 years to less than 4 years | 3.50% | 3.50% | 0.01% | 0.01% | 3.15% | 2.00% |
4 years to less than 5 years | 3.25% | 3.25% | 0.01% | 0.01% | 3.15% | 1.95% |
5 years | 3.25% | 3.25% | 0.01% | 0.01% | 2.50% | 1.75% |
Note: The interest rates mentioned in the table above are effective from 4 September 2026.
Summary
RFC fixed deposits let NRIs who have returned to India keep earning interest on their foreign currency savings without converting them to rupees immediately. HDFC Bank, ICICI Bank, SBI, Canara Bank, and Axis Bank all offer RFC FDs across multiple currencies and tenures of up to five years, though rates and minimum deposit rules vary by bank. Compare the latest rates above and check your eligibility before opening an RFC fixed deposit account.
FAQs on RFC Fixed Deposit
1.What is the minimum balance of an RFC account?
The minimum balance for an RFC fixed deposit account varies from bank to bank, so there is no single figure that applies across all lenders. RBI rules only cap foreign exchange held as cash or traveller's cheques at $2,000, which is separate from RFC deposit limits. Check with your bank for its specific minimum deposit requirement before opening an RFC fixed deposit account.
2.Are the interests earned on RFC account taxable in India?
Interest earned on an RFC fixed deposit is taxable in India for a resident account holder. This interest remains tax-exempt for individuals who qualify as Resident but Not Ordinarily Resident (RNOR). Check your residency status to know how tax applies to your RFC fixed deposit.
3.Can an individual maintain a foreign account after becoming a permanent resident of India?
Yes, a foreign currency account opened or inherited while a person was a non-resident can continue even after they become a resident of India. This is exactly what an RFC fixed deposit account is designed for. It lets returning NRIs keep their overseas earnings in foreign currency instead of converting them to rupees.
4.Are RFC savings accounts and RFC (D) accounts the same?
No, an RFC savings account and an RFC (D) account are not the same. An RFC fixed deposit or savings account earns interest, while an RFC (D) account is a current account that does not pay any interest. Choose the account type based on whether you want your foreign currency to earn returns.
5.Can I renew my RFC fixed deposit account?
Yes, most banks allow you to renew an RFC fixed deposit account on maturity. Renewal terms, such as tenure and the applicable rate, depend on the bank's policy at the time of renewal. Contact your bank to confirm its renewal process for RFC fixed deposits.
6.Where should I open an RFC fixed deposit account?
You can open an RFC fixed deposit account with any Indian bank that offers the scheme to returning NRIs. Consider factors such as the ease of withdrawal, the bank's overseas presence, and its overall credibility before choosing. Compare the RFC fixed deposit features of top banks like HDFC Bank, ICICI Bank, SBI, Canara Bank, and Axis Bank before deciding.
7.Can I open an RFC fixed deposit account with my step-parents?
Yes, an RFC fixed deposit account can be opened jointly with a resident relative, including step-parents, on a 'former or survivor' basis. The joint holder cannot operate the account while the primary account holder is alive. Confirm the exact joint-holding rules with your bank before opening an RFC fixed deposit account.
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