Karur Vysya Bank Boosts FCNR Deposit Rates, Offers Up To 7.00% on US Dollar Savings

Karur Vysya Bank Boosts FCNR Deposit Rates, Offers Up To 7.00% on US Dollar Savings​

Karur Vysya Bank (KVB), a leading private sector bank with over 110 years of legacy, has raised interest rates across its Foreign Currency Non-Resident (FCNR) deposit schemes. The update aims to provide better returns for Non-Resident Indians (NRIs) saving in foreign currencies, particularly highlighting a rate of up to 7.00% per annum on US Dollar (USD) FCNR deposits.

The bank's revised scheme allows NRIs to hold their overseas savings—currently in foreign currency and away from rupee market volatility—for tenures ranging from one to five years. The updated rates are effective from June 10, 2026.

Revised USD FCNR Deposit Rates​

KVB has structured its interest rate ladder based on the maturity period of the deposit. Customers can choose a scheme that fits their savings timeline:

Special Terms for the Top Rate Tier​

The highest rate of 7.00% is applicable to eligible USD FCNR deposits, which carries a mandatory lock-in period of one year. The bank permits premature closure after the completion of this initial one-year period. If closed prematurely thereafter, the interest will be paid at the applicable run period rate less 1%, as per the Bank's Deposit Policy.

Benefits for NRI Customers​

The FCNR deposit product is designed to offer several unique advantages to the diaspora:

• Tax Efficiency: The interest earned on these deposits is exempt from income tax in India under current tax rules, and both principal and interest are fully repatriable.
• Risk Mitigation: Since the deposit remains in foreign currency, its value is protected against movement with the Indian Rupee during the tenure.
• Financial Flexibility: Customers have access to a forward contract facility to lock in an exchange rate if they plan future conversion into Indian Rupees.
• Access to Credit: FCNR deposits allow customers to borrow without breaking the deposit, meeting short-term financial needs while keeping funds intact.

Management Perspective and Bank Strength​

Shri B. Ramesh Babu, Managing Director and CEO of Karur Vysya Bank, stated that these rates directly address the desire of NRIs to earn higher returns on foreign currency savings without taking on rupee risk. He noted that a 7.00% return on USD deposits is a strong proposition given that the interest is tax-free in India under current rules and the principal remains fully repatriable.

As of March 31, 2026, Karur Vysya Bank demonstrated significant operational strength, reporting its highest ever annual net profit of ₹2,510 crore for FY26. The Bank's total business stood at ₹2,14,420 crore, including deposits totaling ₹1,15,666 crore and advances amounting to ₹98,754 crore. KVB serves its customers through a network of 901 branches and over 2,200 ATMs and cash recyclers nationwide.

KARURVYSYA Stock Price Movement​

Karur Vysya Bank Limited saw its stock rally today, settling at ₹288.95 after advancing 4.68% in post-market trading. The shares finished near their daily high and were supported by robust investor activity, with over 5.06 million shares traded during the session.