FCNR Foreign Currency Non Resident Account

Desi · Post by **Desi** » Sun Jan 14, 2007 7:47 pm

Thread starter for FCNR Accounts.

Links:

RBI Link

Another RBI Link

FCNR Fixed Account FAQ link to ICICI Bank

FCNR accounts are not available as savings / current but only with Fixed Deposit options.

Desi · Post by **Desi** » Sun Jan 14, 2007 7:53 pm

karthikik · Post by **karthikik** » Mon Feb 26, 2007 12:47 am

Hello,
I have an FCNR account and it has matured, I would like to transfer it to my bank account here in the USA. Is there any thing that I need to be aware of regarding USA finance and tax laws relating to FCNR investment.

Thanks in advance for any pointers and guidance in this regard.

Cheers,
Karthik

Desi · Post by **Desi** » Mon Feb 26, 2007 8:46 am

Interest earned on FCNR account by US residents is taxable by US.
There are requirement to report interest in foreign accounts exceeding $10K in any year to treasury on form TDF 90 (Google for the exact form #).

nsk · Post by **nsk** » Wed Feb 28, 2007 9:26 pm

Hi Desi and others!

I have a FCNR account opened on Jan 13 of 2006 with 2 year mature period ending on Jan 13 2008. I took 90% loan against that deposit for some investments india. Do I need to pay taxes to IRS for year 2006 even if the deposit is not matured or do I need to pay taxes once it is matured?

cool_r2i · Post by **cool_r2i** » Thu May 24, 2007 10:40 pm

I am thinking of opening FCNR account and will be returning to India soon (within an year). Amount will be less than 10,000$. So, I have some questions and would appreciate your answers.
a) Is FCNR better than US Bank account in terms of interest earned?
b) Can I transfer the amount to US Bank account after maturity? I think the maximum term allowed is 60 months.
c) What are the tax implications in India and in US? I think I will not be filing US tax returns since I am Indian citizen and by that time will be residing in India.

bobo2000 · Post by **bobo2000** » Fri Nov 23, 2007 3:32 am

Does anyone have any experience with Citibank FCNR accounts ? How easy is repatriating the money ? Is there an issue with safety verses a nationalized bank like SBI ?

submarine66 · Post by **submarine66** » Fri Nov 23, 2007 8:31 am

bobo2000;59378Does anyone have any experience with Citibank FCNR accounts ? How easy is repatriating the money ? Is there an issue with safety verses a nationalized bank like SBI ?

I have in the past repatriated FCNR deposits with both Citibank and SBI. Have never faced an issue, it has always been "no questions asked". It takes a few days to get the money reflected into the US account. Once with SBI, my money went into "no-man's land" for a week or two before it was tracked down, and deposited into my US account.

deepakbh899 · Post by **deepakbh899** » Tue Sep 12, 2017 7:41 am

Hi
I wanted to get feedback on opening FCNR ? Is it a good idea to open Checking Account with SBI ( New York ) and transfer USD into it from local bank.
Then, transfer USD to SBI India for opening FCNR.

plansup · Post by **plansup** » Wed Feb 14, 2018 8:30 am

Does anyone have any experience with FCNR with forward cover?
I've got an email from my bank SBI , but dont quite understand it

Yields are quite attractive upto 8.5% for 5 years deposit ( 7.3% for 1 year). From what I understand, your deposits will be in INR only (unlike FCNRs which are in USD, GBP etc.) but you go into contract with bank at fix exchange rate at future date. So even if rupee devalues, you will get a favorable exchange rate. However if dollar( or foreign currency) devalues you dont get to benefit from it, even though your deposits are in INR. Since SBI itself is offering a higher rate that normal NRE deposits(or even domestic deposits), looks like they are betting on a stronger rupee in future.

Any comments/suggestions would be greatly appreciated. Even better , if you have dealt with them in past and dont mind sharing your experiences