# YES Bank FCNR Rates 2026: Currency-Wise Comparison
Author: Ankur Choudhary
Author URL: https://getbelong.com/blog/author/ankur-choudhary/
Published: 2026-08-15
Category: NRI Banking
Category URL: https://getbelong.com/blog/category/nri-banking/
Meta Title: YES Bank FCNR Rates 2026: Currency-Wise Guide
Meta Description: A currency-wise look at YES Bank FCNR rates in 2026, why the tenure curve dips before it jumps, and which currencies run the opposite way.
Tags: FCNR
Tag URLs: FCNR (https://getbelong.com/blog/tag/fcnr/)
URL: https://getbelong.com/blog/yes-bank-fcnr-rates-2026-currency-wise-comparison/

![YES Bank FCNR Rates](https://prod.superblogcdn.com/site_cuid_clx4a3rx6000caheo10zipfw1/images/yes-bank-fcnr-rates-1786962220883-compressed.jpg)

Almost everyone assumes a deposit rate card slopes upward. Longer money, better rate.

Open YES Bank's FCNR schedule and that assumption breaks in two separate places.

The first break is in the middle. On the dollar line, the two to three year bucket pays less than the one to two year bucket.

Not marginally less. Visibly less.

The second break is bigger. At the three year mark the rate jumps sharply, and stays high through five years.

Then there is the third surprise, which is currency-specific. On at least two currencies, the curve runs downhill the whole way.

This piece explains why the shape looks like that, and what it means for the tenure you pick. We do not reproduce the figures, since they change. The shape is the durable part.

## Why the curve dips, then jumps

The shape is not a pricing quirk. It is regulation made visible.

RBI's 2026 arrangement covered a concessional swap facility and a temporary ceiling relaxation. Both applied only to FCNR(B) deposits of three to five years.

Everything below three years stayed under the old ceiling. Everything at three years and above was freed.

So the card has a wall in it. On one side, ordinary pricing. On the other, pricing shaped by a temporary facility.

The two to three year bucket is the worst place to stand. It carries the lock-in of a longer commitment without any of the benefit.

👉 Tip: If you are choosing between two years and three, look at both rows before deciding. The gap is not incremental.

That single comparison is the most valuable thing on the page. Book two years because it feels safer and you may give up a great deal. All for one year of flexibility.

Also Read: [SBI FCNR Rates](https://getbelong.com/blog/sbi-fcnr-rates/)

Tenure zone

What is happening

Under two years

Ordinary pricing, old ceiling

Two to under three years

Lowest point on the dollar line

Three to five years

Shaped by the temporary facility

## Nine currencies, and one almost nobody offers

YES Bank's [NRI interest rates schedule](https://www.yes.bank.in/sites/web/content/published/api/v1.1/assets/CONT4232E91A699245729D4F725A28ECFEA2/native/nri_interest_rates_pdf.pdf) lists an unusually wide currency range for FCNR(B).

It covers USD, GBP, Euro, Japanese Yen, Canadian Dollar, Australian Dollar, Hong Kong Dollar and Singapore Dollar.

The Hong Kong Dollar is the outlier. Very few Indian banks still carry it. At least one large private bank withdrew it from FCNR some years ago.

The dollar line is also split into two size bands, with separate pricing above and below a large-value threshold. Most banks handle large deposits by referral to a branch. This schedule prices them openly.

For the equivalent elsewhere, see our note on [which currencies you can hold in a GIFT City bank account](https://getbelong.com/blog/which-currencies-can-you-hold-in-a-gift-city-bank-account/).

## The currencies that run downhill

Here is the part a single-currency article would miss entirely.

On the Australian Dollar and Canadian Dollar lines, the rate does not jump at three years. It declines as tenure lengthens, so the longest tenure pays the least.

That inversion is real and it changes the advice completely. For those currencies, the temporary facility has not reshaped the curve the way it has for the dollar.

The Japanese Yen sits near the floor across every tenure. That reflects decades of Japanese monetary policy, not anything about this bank. Long periods of [deflation](https://getbelong.com/blog/deflation-meaning/) and near-zero policy rates leave very little to pass on.

The Euro sits well below the dollar and sterling lines, tracking European Central Bank policy.

Also Read: [Canara Bank FCNR Rates](https://getbelong.com/blog/canara-bank-fcnr-rates/)

Currency behaviour

What it means for tenure

USD, GBP, Euro

Longer tenures priced far better

AUD and CAD

Shorter tenures priced better

JPY and HKD

Low across every tenure

👉 Tip: Do not assume longer is better. Check your own currency's line before choosing tenure.

If your spending currency sits in the second or third row, the whole 2026 story barely applies to you. That is worth knowing before you read another rate headline.

Our note on [why you should not pick only the highest rate](https://getbelong.com/blog/why-nris-should-not-pick-only-the-highest-gift-city-rate/) makes the same argument in a different context.

Also Read: [Federal Bank FCNR Rates](https://getbelong.com/blog/federal-bank-fcnr-rates/)

## The penalty table with three effective dates

This is the most transparent disclosure we have found across the banks in this series, and it repays reading.

YES Bank publishes its FCNR penalty across three separate effective dates. You can see how the policy changed through 2026.

The pattern is clear once you look. Penalties on the shorter tenure band stayed unchanged throughout.

Penalties on the three year and above band were raised. The dollar moved first, then the remaining currencies a week later.

Read that alongside the rate curve and it makes sense. The bank improved pricing on the longer band, then raised the cost of leaving it early.

The short band penalty remains very small, and is among the lowest we have seen published. So the exit cost is not uniform across the card, and it now varies by currency as well as tenure.

The bank also publishes a worked example of how the penalty applies. Interest is first recalculated at the rate for the tenure actually completed. The penalty is then deducted from that reset rate.

That two-step is the part depositors underestimate. The rate reset usually costs far more than the penalty itself.

No penalty applies where the deposit is broken before one year. No interest is payable in that period at all.

## The lock-in, and the date to check

Deposits booked for three to five year tenures within the current window carry a twelve month lock-in.

The schedule gives the window as running from 11 June 2026 to 30 September 2026.

That end date needs care. Reporting in mid-August indicated RBI moved that deadline forward to 31 August 2026. Inflows had run ahead of expectations.

We have now seen the September date on several bank pages across this series. We cannot reconcile the two from published sources.

👉 Tip: Treat 31 August as your working deadline and confirm with the bank. It is the safer assumption.

Note also the start date. Banks opened their windows on different days in June.

An early June booking may sit outside the arrangement at one bank and inside it at another.

## What the schedule tells you about returning

The same document carries the RFC deposit card, and comparing the two is instructive.

RFC deposits are what returning NRIs typically move into. The schedule shows RFC covering a narrower currency range than FCNR, and stopping short of the longest tenures.

The RFC rate card also carries an earlier effective date than the FCNR card. The favourable repricing that reached FCNR has not reached RFC in the same way.

That is a planning point rather than a complaint. If you expect to return to India, the currency you hold may earn differently once your status changes.

The schedule also notes that the premature withdrawal penalty does not apply to RFC deposits. So the exit terms improve at exactly the point the rates do not.

For the account transition itself, see our note on [NRE and NRO fixed deposits](https://getbelong.com/blog/nro-and-nre-fixed-deposits/).

## A separate product in the same document

Worth flagging so you do not confuse the two.

The same schedule carries a distinct foreign currency deposit product. It has its own currency list, including the UAE Dirham, and tenures running from days.

That is a different product from FCNR(B), with different rules and a different penalty structure. Confirm which entity and which product any quote refers to.

For UAE readers specifically, the dirham option is worth understanding alongside the alternatives. Our note on [investing dirhams in India](https://getbelong.com/blog/investing-dirhams-india/) covers the routes. Our overview of [fixed deposit rates in the UAE](https://getbelong.com/blog/best-fixed-deposit-rates-uae/) covers staying local.

For dollar holdings in GIFT City, see our note on [holding dollars there](https://getbelong.com/blog/can-nris-hold-dollars-in-a-gift-city-bank-account/). We also cover [the best GIFT City bank accounts](https://getbelong.com/blog/best-gift-city-bank-accounts/).

## Reading a card that has a wall in it

Once you know the shape, a practical habit follows.

Read down your currency column first, not across the tenure row. The row invites you to compare currencies you will never hold.

Then find where the discontinuity sits on your line. On some currencies it is a jump at three years. On others there is no jump at all.

Only after that should you look at the actual figures. The shape tells you which decisions matter; the numbers only tell you by how much.

👉 Tip: Column first, then discontinuity, then numbers. In that order.

This matters because rate cards are designed to be scanned across. Scanning across a card with a wall in it produces exactly the wrong conclusion.

A reader who compares five year rates across currencies will conclude the dollar is the obvious answer. A reader who compares along their own currency line may conclude something quite different.

## Tax, and what actually reaches you

Interest on FCNR(B) deposits is exempt from income tax in India for eligible non-residents under prevailing law.

The exemption follows your residential status rather than the product. Your country of residence may tax the interest regardless.

So the card shows a gross figure in one country. What reaches you is a net figure across two.

Our comparison of [pre-tax against post-tax returns](https://getbelong.com/blog/pre-tax-returns-vs-post-tax-returns/) sets out why that gap matters more than a small rate difference.

Deposit interest is also taxed differently from capital gains in most systems. Our note on [capital gains versus interest income](https://getbelong.com/blog/capital-gains-vs-interest-income/) covers the distinction.

Judged on [nominal return against real return](https://getbelong.com/blog/nominal-return-vs-real-return-meaning/), a deposit typically holds value rather than builds it.

## Choosing the tenure

Work backwards from a date in your life rather than forwards from the card.

If you might need the money inside a year, do not book at all. No interest is payable, and [liquidity](https://getbelong.com/blog/liquidity-meaning/) matters more than yield at that horizon.

If your horizon is two to three years, look hard at whether a third year is possible. The [opportunity cost](https://getbelong.com/blog/opportunity-cost-meaning/) of stopping short is unusually high on this card.

If you are in AUD or CAD, the logic inverts. Shorter may serve you better, and the 2026 story does not apply.

If you are returning to India, check where maturity falls against your status change before anything else.

Our comparison of [short-term against long-term investing](https://getbelong.com/blog/short-term-investing-vs-long-term-investing/) covers the general trade-off.

## Where a deposit belongs

A deposit preserves capital in a chosen currency. It does not build wealth quickly, whatever this year's card looks like.

It sits in the stability layer. Our note on [high return investments against stable investments](https://getbelong.com/blog/high-return-investments-vs-stable-investments/) sets out the distinction honestly.

One structural point deserves stating plainly. Deposits with a scheduled bank in India sit within the DICGC deposit insurance framework, subject to its limits and rules. Deposits with an IFSC Banking Unit in GIFT City do not carry that same cover.

That is not an argument against GIFT City. It is an argument for knowing which protection attaches where.

To compare deposit rates across banks, our [NRI FD rates explorer](https://getbelong.com/tools/nri-fd-rates/) puts the options side by side. For the rupee side of this bank's range, see our note on [YES Bank FD rates](https://getbelong.com/blog/yes-bank-fd-rates/).

Additional rates for senior citizens generally do not apply to non-resident deposits. Our note on [senior citizen schemes for NRIs](https://getbelong.com/blog/nri-senior-citizen-schemes/) covers what does.

## For resident Indians reading this

FCNR is not open to you. It is a non-resident product by design.

If your holdings are entirely rupee-denominated, your currency position is a default rather than a choice. GIFT City is the route residents use for USD-denominated funds without the overseas remittance process.

Our [GIFT City mutual funds explorer](https://getbelong.com/tools/gift-city-mutual-funds/) lists what is available. Mandates run from the [DSP Global Equity Fund](https://getbelong.com/tools/gift-city-mutual-funds/dsp-global-equity-fund/) to the [Tata India Dynamic Equity Fund](https://getbelong.com/tools/gift-city-mutual-funds/tata-india-dynamic-equity-fund/).

Regional and mid-cap mandates sit alongside them. The [Edelweiss Greater China Equity Fund](https://getbelong.com/tools/gift-city-mutual-funds/edelweiss-greater-china-equity-fund/) and [Sundaram India Mid Cap Fund](https://getbelong.com/tools/gift-city-mutual-funds/sundaram-india-mid-cap-fund-gift/) target different outcomes.

For longer horizons, [GIFT City alternative investment funds](https://getbelong.com/tools/gift-city-alternative-investment-funds/) and the [primary market](https://getbelong.com/products/ipo/) open further routes. Our explainer on the [first GIFT City IPO](https://getbelong.com/blog/ipo/gift-city-ipo/) covers how that market works.

You can also browse [mutual fund products](https://getbelong.com/products/mutual-funds/) and follow market direction on the [GIFT Nifty tracker](https://getbelong.com/tools/gift-nifty/).

## FAQ

**Why does the two to three year rate look worse than the one to two year rate?**

Because RBI's 2026 arrangement applied only to three to five year deposits. The shorter bands stayed under the previous ceiling, so the improvement never reached them.

**Which currencies does YES Bank offer for FCNR(B)?**

Its published schedule lists USD, GBP, Euro, Japanese Yen, Canadian Dollar, Australian Dollar, Hong Kong Dollar and Singapore Dollar. The Hong Kong Dollar is rare among Indian banks.

**Is longer always better?**

No. On the Australian Dollar and Canadian Dollar lines the rate declines as tenure lengthens. The longest tenure pays the least.

**What is the premature withdrawal penalty?**

It varies by tenure band and now by currency, and the bank publishes it across three effective dates. Interest is first reset to the tenure actually completed, then the penalty is deducted.

**What happens if I break the deposit inside a year?**

No interest is payable, so no penalty applies either. You receive your foreign currency principal back.

**When does the window close?**

The schedule states 30 September 2026. Reporting indicates RBI moved the deadline to 31 August 2026. Confirm the live date with the bank.

## What we would do next

Find your currency's line first, then read it top to bottom before choosing tenure. Compare the two year and three year rows directly. Then confirm the booking cut-off with the bank, given the date conflict.

[Belong](https://getbelong.com/) brings deposit and fund options into one view. Our WhatsApp community is where NRIs work through these decisions together.

## Sources

- YES Bank, NRI Interest Rates schedule. Primary source for the FCNR(B) currency list, tenure bands and curve shape. Also the lock-in and its stated window. Also the penalty table, worked example, RFC card and the separate foreign currency product: https://www.yes.bank.in/sites/web/content/published/api/v1.1/assets/CONT4232E91A699245729D4F725A28ECFEA2/native/nri\_interest\_rates\_pdf.pdf

- Reserve Bank of India, Master Direction on Interest Rate on Deposits. Also the Commercial Banks Amendment Directions, 2026, dated 17 June 2026. These withdrew the FCNR(B) ceiling for three to five year tenors: https://www.rbi.org.in

- Reserve Bank of India, circular FMOD.MAOG.No.S-56/01.06.016/2026-27, dated 8 June 2026, establishing the concessional swap facility: https://www.rbi.org.in

- Business Standard, RBI lifts cap on FCNR(B) and NRE deposit rates, 17 June 2026: https://www.business-standard.com/finance/news/rbi-lifts-cap-on-fcnr-b-nre-deposit-rates-to-boost-foreign-inflows-126061701121\_1.html

- Gulf News, RBI brings forward the FCNR(B) deposit mobilisation deadline to 31 August 2026: https://gulfnews.com/business/banking/rbi-brings-forward-deadline-for-banks-to-raise-fcnr-deposits-after-strong-response-1.500641215

- Deposit Insurance and Credit Guarantee Corporation: https://www.dicgc.org.in

- Income Tax Department, India: https://www.incometax.gov.in


Rates, penalties, currency lists and deadlines change. Verify each on YES Bank's and RBI's official pages before acting.

## Disclaimer

This article is for information only and is not investment, tax or legal advice. It does not account for your personal circumstances, residential status or country of tax residence.

This piece does not reproduce the numeric rate table published by the bank. Deposit rates change frequently, and a published figure would be stale before most readers saw it.

The curve shape and relative positions between currencies are described directionally. The bank's own schedule is the authoritative source.

The deadline conflict described here is presented as unresolved, not as a finding on which date is correct.

The separate foreign currency deposit product appears in the same schedule. It operates under different terms. Readers should confirm which entity and product any quote relates to.

Terms described here reflect published positions at the time of writing and may have changed since.

Consult a qualified tax adviser in India and your country of residence before booking. Belong is an investment advisory platform and does not accept deposits.


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