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Finance & Taxes
FCNR vs HYSA: After-Tax Returns Calculator
Compare FCNR fixed deposit returns vs a US High-Yield Savings Account or CD after US income tax. See net returns, tax impact, and a 10-year compounding chart.
Your details
FCNR (Indian bank USD deposit)★ Better choice by $1,103
Fixed deposit at an Indian bank in USD · 5.5% gross · no India tax under FEMA
Total value at maturity
$30,680
Gross rate5.5%
After-tax effective rate4.2%
Gross interest earned$6,875
US tax paid (total)−$1,650
Net after-tax gain+$5,680
HYSA / CD (US account)
High-yield savings or CD at a US bank · 4.5% gross
Total value at maturity
$29,578
Gross rate4.5%
After-tax effective rate3.4%
Gross interest earned$5,625
US tax paid (total)−$1,350
Net after-tax gain+$4,578
FCNR earns you $1,103 more after US taxes over 5 years — a 3.7% advantage at your 24% tax bracket. HYSA/CD trails by that margin despite identical tax treatment.
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10-Year Compounding Growth
FCNR (Indian bank USD deposit)HYSA / CD (US account)
FBAR filing required: If your total Indian bank account balances exceed $10,000 at any point during the year, you must file FinCEN Form 114 annually by April 15. Failure to file carries steep penalties. → Check your FBAR obligation
FCNR early closure: If you close the deposit before 1 year, you earn zero interest. After 1 year, a 1% penalty applies on the contracted rate.
Deposit insurance gap: Indian deposit insurance (DICGC) covers up to ₹5 lakhs (~$6,000 at current rates) per depositor per bank — much less than the $250,000 FDIC coverage on US accounts. For large amounts, split across banks.
Rate disclaimer: Rates shown are indicative. Verify current rates directly with your bank before opening a deposit. FCNR rates change monthly.
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Educational estimate only. This calculator provides general estimates and is not financial, tax, legal, or immigration advice. Rules change and vary by state, visa status, and individual circumstance. Consult a qualified professional before acting. See our full disclaimer.