Updated November 2026 · VG CPA PC advisors
Which Indian accounts count
Savings and current accounts, NRE and NRO accounts, fixed and recurring deposits, demat and brokerage accounts, and mutual fund holdings in India are generally foreign financial accounts for FBAR purposes. Many advisors also treat PPF and EPF balances as reportable. Each account is listed separately, and fixed deposits held under one customer ID may still need separate entries.
If the combined maximum balance of all your foreign accounts exceeded $10,000 at any time in the calendar year, every account must be reported, not just the large ones.
Tax on interest
US citizens and residents are taxed on worldwide income. Interest on NRE accounts and fixed deposits is tax-free in India for non-residents, but it is fully taxable in the US in the year it is credited, even if it is reinvested. NRO interest is taxable in both countries, and Indian tax withheld can usually be claimed as a foreign tax credit.
Fixed deposits that accrue interest until maturity still produce taxable income each year for US purposes in many cases, so look at the bank's interest certificates rather than waiting for maturity.
Form 8938 and practical steps
If your foreign assets exceed the Form 8938 thresholds, the same accounts must also be reported with your tax return. Keep year-end and peak balances for each account, and convert using the Treasury year-end exchange rate.
If you missed prior years, the Delinquent FBAR procedures or Streamlined procedures can usually fix the problem with little or no penalty, as long as you act before the IRS contacts you.