Some prominent banks in India – State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), HDFC Bank and others – have increased the deposit rates for FCNR and NRE accounts.
| In order to encourage foreign currency inflows into India, the major banks in India have increased the interest rate offered on FCNR and NRE accounts. |
State Bank of India (SBI)
The rates have been increased by 0.5%.
FCNR
Rates on FCNR USD deposits with a maturity between 1-2 years will have an interest rate of 2.96% compared to 2.46% earlier.
Rates for deposits with tenures between 2-3 years, 3-4 years and 4-5 years have been revised to 3.06% (2.56%), 3.38% (2.88%) and 3.60% (3.10%) respectively.
The deposits in Euro (EUR) and Pound (GBP) for a maturity between 1-2 years will have a new rate of 5.08% (4.58%) and 5.77% (5.27%) respectively.
NRE
The interest rate for NRE deposits with a tenure between 1-2 years has been increased to 3.71% (3.21%).
NRE deposit rates for deposits having 2-3 years and 3-5 years maturities have also been upped to 3.81% (3.31%) and 4.13% (3.63%) respectively.
HDFC Bank
FCNR
HDFC has increased the interest rate to 2.95% from 2.45% for US Dollar deposits having a 1-2 years tenure, and to 3.05% (2.55%) for deposits having a 2-3 year maturity.
The interest rate on a deposit of 3-4 years tenure would be 3.38%. The interest rate for a deposit having a 5 years maturity would be 3.75%.
For deposits in Euro (EUR), following are the revised rates:
Maturity 1-2 years: 5.07%
Maturity 2-3 years: 4.63%
Maturity 3-4 years: 4.52%
For deposits in Pound (GBP), following are the revised rates:
Maturity 1-2 years: 5.77%
Maturity 2-3 years: 5.15%
Maturity 3-4 years: 5.12%
NRE
Maturity 1-2 years: 3.71%
Maturity 2-3 years: 3.81%
Maturity 3-5 years: 4.13%
Punjab National Bank (PNB)
FCNR
No change in rates.
NRE
The interest rate for NRE deposits has been hiked by 0.50%.
Bank of Rajasthan
FCNR
For US Dollar deposits:
Maturity 1-2 years: 2.96% (2.46%)
Maturity 2-3 years: 3.06% (2.56%)
Maturity 3-4 years: 3.38% (2.88%)
Maturity 4-5 years: 3.60% (3.10%)
Maturity 5 years: 3.76% (3.26%)
For Pound (GBP) deposits:
Maturity 1-2 years: 5.77% (5.27%)
Maturity 2-3 years: 5.15% (4.65%)
Maturity 3 years: 5.13% (4.63%)
For Euro (EUR) deposits:
Maturity 1-2 years: 5.08% (4.58%)
Maturity 2-3 years: 4.63% (4.13%)
Maturity 3 years: 4.53% (4.03%)
NRE
Maturity 1-2 years: 3.71% (3.21%)
Maturity 2-3 years: 3.81% (3.31%)
Maturity over 3 years: 4.13% (3.63%)
Others
Union Bank of India (UBI) and Bank of Baroda (BoB) have also increased their deposit rates by 0.5%.
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