Updated 23 October 2026. We opened SBI's NRE and FCNR(B) rate pages, the RBI's deposit Master Direction and the October policy statement. This is not about the best deposit overall; it is about where a Gulf buyer keeps a down payment or the next construction-linked instalment.

What changed since August?

  • 8 June to 31 August 2026: the RBI ran a swap window to attract FCNR(B) deposits. Total inflows reached $136.38 billion, of which FCNR(B) was $127.23 billion (Outlook Business, 2 September 2026, reporting RBI data).
  • The window was due to run to 30 September but closed on 31 August (Outlook Business).
  • 7 October 2026: the RBI's Monetary Policy Committee raised the repo rate by 25 basis points to 5.50% (RBI). NRE rates are set by each bank; FCNR(B) rates follow foreign-currency conditions more than the repo rate.

SBI's rates today

NRE term deposits below ₹3 crore, with effect from 15 August 2026 (SBI, page updated 22 October 2026):

  • 1 year to under 2 years: 6.25%.
  • 444 days (Amrit Vrishti): 6.45%.
  • 2 years to under 3 years: 6.40%.
  • 3 years to under 5 years: 6.30%.
  • 5 to 10 years: 6.05%.

And on US dollar FCNR(B)?

SBI's USD FCNR(B) table, the same at every amount slab (SBI, page updated 22 October 2026):

  • 1 year to under 2 years: 4.50%.
  • 2 years to under 3 years: 3.55%.
  • 3 years to under 4 years: 3.50%.
  • 4 years to under 5 years: 3.10%.
  • 5 years: 3.15%.
  • SBI pays no interest on either deposit withdrawn before one year (SBI rate pages).

The break-even, in plain numbers

An NRE deposit is in rupees, so you carry the currency risk; an FCNR(B) deposit stays in dollars, so you do not. Over two years, 6.40% on NRE against 3.55% on FCNR(B) means the rupee would have to fall by about 2.75% a year against the dollar for the two to come out equal. Over three years, 6.30% against 3.50% gives about 2.7% a year (our arithmetic, before any tax). For reference, the rupee is down 4.06% since the US–Iran conflict began but up 1.06% in October to 22 October (Business Standard, 22 October 2026).

For a home payment, the currency risk mostly disappears once you are sure to spend the money in rupees: the bill is in rupees whatever happens to the dirham.

Which account suits which part of the purchase

  • Booking amount due within weeks: NRE savings, not a term deposit, because SBI pays nothing on term deposits broken before a year.
  • Instalments due in 12–36 months on a construction-linked plan: NRE term deposits laddered to the payment dates.
  • Money you may or may not spend in India: FCNR(B), which keeps it in foreign currency.
  • Tax: SBI states that interest on NRE accounts is exempt from Indian income tax (SBI NRE account page). Confirm with your adviser if your residential status may change.
  • Repatriation later: a home paid for from NRE or FCNR(B) funds keeps the right to repatriate sale proceeds, for up to two homes (RBI Master Direction No. 12, para 8.2).
  • Loan against the deposit: banks may lend against NRE deposits, including to buy a house for your own residence (RBI Master Direction on deposits, para 4.8.1(c)).

What a Gulf buyer should do now

  • Ask your developer for the payment schedule in writing, then match deposit tenors to each due date.
  • Check your own bank's current NRE and FCNR(B) tables; rates differ between banks and change without notice.
  • Keep the payment trail: remittance advice, FIRC where issued, and the NRE statement. You will need it for repatriation.
  • Guides: Nre Nro Fcnr Accounts, Nri Home Loan, True Cost Calculator, Gulf.