Canara Bank FCNR Account

A Canara Bank Foreign Currency Non-Resident (FCNR) Account is a specialised term deposit account for Non-Resident Indians (NRIs), offering a secure and tax-efficient way to save money in foreign currencies. Let’s delve into its benefits, features, and requirements to understand why it’s a preferred choice for NRIs.

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What is an FCNR Account?

An FCNR account is a term deposit account that allows NRIs to park their foreign currency earnings in India without worrying about currency conversion risks. The account is maintained in foreign currencies like USD, GBP, EUR, AUD, CAD, and others, offering flexibility and convenience for NRIs.

Key Features of Canara Bank FCNR Account

Below are the features of Canara Bank FCNR Account: 

  • Half-Yearly Interest Compounding: Interest is compounded semi-annually for term deposits.

  • Not a Savings Account: FCNR accounts are strictly term deposit accounts.

  • Premature Withdrawal Policy: Allowed, but interest is paid only after completing one year.

  • Tax-Free Interest: Interest earned is non-taxable in India.

  • Repatriability: Principal and interest are fully repatriable, making it easier to manage overseas finances.

  • Funding Options: Open the account via transfers from an existing NRE account or through remittances from abroad.

  • Loan Against Deposit: Loans can be availed over the deposit amount.

SIP with Life Cover and Tax Savings SIP with Life Cover and Tax Savings

Benefits of Canara Bank FCNR Account

Below are the benefits of Canara Bank FCNR Account: 

  • Income Tax Exemption: The interest earned on FCNR deposits is completely tax-free in India.
  • Freely Convertible: Funds can be transferred freely without any restrictions.
  • No Exchange Loss: Deposits and withdrawals are in foreign currencies, eliminating exchange rate risks.
  • Flexible Tenure: Choose a term between 1 to 5 years.
  • Multiple Currencies: Available in USD, GBP, EUR, CAD, and AUD.
  • Loan Facility: Loans can be availed against FCNR deposits.
  • Nomination Facility: Nomination is allowed for added convenience.
  • Joint Account: Joint accounts can be opened with another NRI.
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Documents Required for Canara Bank FCNR Account

Below are the documents required for Canara Bank FCNR Account: 

  • ID Proof: Photocopy of valid passport or OCI/PIO card.
  • PAN/ Form 60: PAN card or Form 60 in its absence.
  • NRI Status Proof: Valid visa, work permit, or OCI/PIO card.
  • Address Proof: Required for correspondence.
  • Photographs: Recent passport-sized photographs.
  • FATCA Declaration: Compliance with regulatory requirements.
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Other Important Information for Canara Bank FCNR Account

  • Interest Calculation: Based on 360 days per year.

  • Renewal Policy: One-time automatic renewal is available; overdue deposits can be renewed as per the bank’s terms.

  • Crystallisation: Balances not renewed within three years of maturity are converted into INR at prevailing exchange rates.

  • Premature Closure: No interest is paid if the deposit is closed before one year.

Terms for Premature Closure of Canara Bank FCNR Account

  1. Deposits Opened Before 19.11.2021:
    • Interest payable is 1% lower than the applicable rate if closed after one year.

    • For reinvestment in other permitted currencies, the reduction is 0.50%.

  2. Deposits Opened After 19.11.2021:
    • Interest is payable at the lower of the rate applicable at deposit opening or at premature withdrawal.

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Why Choose a Canara Bank FCNR Account?

The Canara Bank FCNR Account ensures secure savings in foreign denominations with attractive benefits like tax exemptions, repatriability, and flexible tenure. It’s an ideal solution for NRIs seeking financial growth without currency risks.

FAQs

  • What currencies are available for FCNR accounts?

    FCNR accounts can be opened in USD, GBP, EUR, CAD, and AUD.
  • Is the interest earned on FCNR deposits taxable in India? 

    No, the interest earned is entirely tax-free in India.
  • Can I withdraw funds before the deposit matures?

    Yes, premature withdrawals are allowed, but interest is paid only if the deposit has completed one year.
  • Can I open a joint FCNR account? 

    Yes, joint accounts are allowed, but the co-account holder must also be an NRI.
  • What is the tenure range for FCNR deposits? 

    Tenure can range from 1 to 5 years.
  • How can I fund my FCNR account? 

    You can fund it by transferring money from an existing NRE account or through remittance from abroad.
  • Can I avail a loan against my FCNR deposit? 

    Yes, loans can be availed against the deposit.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*Past 10 Year annualised returns as on 01-01-2025
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 2 Cr. is for a 30 year old healthy individual investing Rs 18,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: 1,06,79,507 @ CAGR 4%; 2,12,15,817 @ CAGR 8%. All plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).

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