NRIs can balance returns and currency risk by mixing FCNR(B) and NRE deposits

Experts suggest NRIs split savings between FCNR(B) and NRE fixed deposits to balance returns and currency risk, rather than choosing solely on interest rates. NRE deposits offer tax-free rupee returns but expose depositors to currency risk, while FCNR(B) deposits shield principal and interest from exchange-rate fluctuations. RBI waives hedging costs and lifts FCNR(B) rate caps until September 30, 2026. The right mix depends on financial goals, currency outlook and risk tolerance: FCNR(B) suits overseas expenses, while NRE suits rupee spending; a balanced allocation may optimize returns.