Why Australia-Based NRIs Are Looking at FCNR(B) Deposits in 2026

For many NRIs living in Australia, financial planning often stretches across two countries. You may earn and save in Australian Dollars, while still supporting family in India, building an India-linked corpus or planning for future expenses such as education, property or retirement.

An FCNR(B) Fixed Deposit can be relevant in this situation. It allows eligible NRIs to hold a fixed deposit in a supported foreign currency, including Australian Dollars, instead of converting the deposit into Indian Rupees.

This does not make FCNR(B) a replacement for every Australian savings option. But for customers with India-linked financial goals, it can offer a structured way to hold foreign-currency savings with a fixed tenure, full repatriability and tax benefits in India, subject to applicable laws.

In 2026, Australia-based NRIs may be looking more closely at FCNR(B) deposits for three main reasons.

First, Australian Dollars are a supported FCNR(B) currency with HDFC Bank. This allows eligible customers to hold their deposit in AUD instead of converting funds into INR at the time of booking.

Second, HDFC Bank’s published FCNR(B) rate card currently shows an AUD interest rate of 6.25% per annum for tenures from three years to five years, effective 22 June 2026. FCNR rates are subject to change, and the applicable rate will be the rate prevailing when the deposit is processed.

Third, the product can suit medium-term India-linked financial goals. Rather than leaving eligible foreign currency savings idle, an FCNR(B) deposit can provide a defined tenure and interest rate while keeping the funds in a foreign currency.

Currency choice is one of the most important decisions before opening an FCNR(B) deposit.

When you open an AUD FCNR(B) deposit, the deposit remains in Australian Dollars. This can help avoid converting your savings into INR at the time of booking.

However, holding your deposit in AUD does not eliminate all currency considerations. If your future requirement is in India and will eventually be paid in INR, the AUD–INR exchange rate at that later point will still matter.

The best approach is to match the deposit currency with your future needs. If you expect to use the money in Australia or need flexibility in Australian Dollars, the AUD option may be relevant. If your future expenses are expected in another currency, consider the conversion impact before booking. 

For eligible NRIs, FCNR(B) interest is generally exempt from income tax in India, subject to applicable tax laws and residential status.

However, this Indian tax treatment does not automatically mean the interest is tax-free in Australia.

If you are an Australian tax resident, interest earned from an FCNR(B) deposit may need to be included in your Australian tax return as foreign income. Your final tax position can depend on your overall income, tax residency and individual circumstances.

Tax rules can change, and residency status can affect tax treatment. Consider speaking with a qualified Australian tax professional before relying on any tax outcome.

FCNR(B) is a fixed deposit, not a market-linked investment. The interest rate is linked to the selected currency and tenure, and the applicable rate is confirmed when the deposit is processed.

With HDFC Bank, FCNR(B) deposits can be opened for a minimum tenure of one year and a maximum tenure of five years.

Before booking, consider your liquidity needs carefully. No interest is payable if an FCNR(B) deposit is prematurely withdrawn before one year. For eligible FCNR(B) deposits booked for three to five years between 10 June 2026 and 30 September 2026, a one-year lock-in period applies.

Returns should not be viewed in isolation. Compare the prevailing FCNR(B) rate with your preferred tenure, the currency of your future needs, tax treatment and the terms for premature withdrawal.

HDFC Bank offers FCNR(B) deposits in Australian Dollars. The current minimum amount for an AUD FCNR(B) deposit is AUD 1,000, subject to change.

The AUD option may be useful when:

• You have eligible savings in Australian Dollars

• You want to avoid immediate conversion into INR 

• Your future needs are linked to Australia, India or both

• You are comfortable keeping the deposit for the selected tenure

The key is to avoid choosing a currency only because of the displayed rate. A deposit currency should align with the currency in which you expect to need the funds later.

Australian tax residents are generally required to declare foreign income in their Australian tax return. This can include interest earned from overseas bank accounts and deposits.

For FCNR(B) interest, keep clear records of:

• Interest earned during the relevant Australian financial year

• The currency in which the interest was received 

• The Australian Dollar value used for tax reporting

• Any tax paid overseas, where applicable

• Deposit statements and interest certificates

Where foreign tax has been paid, an Australian tax resident may be eligible to consider a foreign income tax offset. However, as FCNR(B) interest is generally exempt from tax in India for eligible NRIs, there may be no Indian tax paid to offset against an Australian tax liability. 

Existing HDFC Bank customers can book an FCNR(B) deposit through NetBanking.

• Log in to HDFC Bank NetBanking.

• Click on the FD/RD tab.

• Under Quick Links, select Open a New Deposit.

• Under Fixed Deposit Type, select FCNR from the dropdown.

• Select your preferred currency.

• Choose the NRE account to be debited.

• Enter the deposit amount in INR.

• Select the preferred tenure.

• Choose the maturity instruction.

• Read the note displayed on the screen and click Continue.

• Select your preferred branch.

• Add or update your nominee details.

• Read the note displayed on the screen and click Continue.

• Review all the details entered.

• Read and accept the Terms and Conditions by clicking the consent box.

• Click Confirm to submit your FCNR(B) Deposit request.

You can also fund an FCNR(B) deposit through an inward SWIFT remittance from Australia. When remitting funds, mention your Customer ID in the beneficiary account number and add “Book FCNR Deposit for tenure” in the remarks.

New-to-HDFC Bank NRI or PIO customers can contact HDFC Bank to begin the FCNR(B) booking process. Simply write to us at fcnrswap@hdfc.bank.in

An AUD FCNR(B) deposit may be worth considering when:

• You are eligible to open an FCNR(B) deposit

• You have surplus savings in Australian Dollars

• You have India-linked financial goals 

• You do not need the funds immediately

• You can stay invested for at least one year

• You understand the Australian tax-reporting requirement

• You have checked the latest HDFC Bank interest rate and deposit terms 

It may be less suitable when you need immediate access to the money or expect to spend the funds soon in a currency other than AUD.

For Australia-based NRIs, an AUD FCNR(B) deposit can be a useful way to hold eligible foreign-currency savings while retaining an India banking connection.

Its relevance comes from more than the interest rate. The AUD currency option, full repatriability and Indian tax treatment can make it suitable for medium-term India-linked goals.

Before booking, check the latest HDFC Bank rate, tenure and premature-withdrawal terms. Also consider how the deposit fits into your Australian tax position and future currency needs.

View Current FCNR(B) Rates

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Rates and terms are subject to change. Please refer to HDFC Bank’s official FCNR(B) rate card for the most current information.