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%.
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.
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 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%
Maturity 1-2 years: 3.71%
Maturity 2-3 years: 3.81%
Maturity 3-5 years: 4.13%
Punjab National Bank (PNB)
No change in rates.
The interest rate for NRE deposits has been hiked by 0.50%.
Bank of Rajasthan
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%)
Maturity 1-2 years: 3.71% (3.21%)
Maturity 2-3 years: 3.81% (3.31%)
Maturity over 3 years: 4.13% (3.63%)
Union Bank of India (UBI) and Bank of Baroda (BoB) have also increased their deposit rates by 0.5%.
Other articles you might be interested in:
- Renting vs Buying: To buy a house or rent it?
- RBI proposes drastic reduction in clearing charges for outstation cheques
- Definition of Residential Statuses: Resident, RNOR, NRI, PIO
- An Introduction to Islamic or Shariah Compliant Banking
- Early retirement – Why a fixed deposit (FD) is not a good choice
- Permanent Account Number (PAN) for an NRI and a PIO
- You are 30 – Think of 50: Impact of inflation on your budget
- An Introduction to Reverse Mortgage
- Home Loan / Mortgage Insurance – What to Buy, How to Buy
- Change in interest rate: Impact on floating rate home loan, EMI and tenure
- All you wanted to know about Senior Citizen Savings Scheme (SCSS)
- When “at-par” is not so good: New Fund Offer (NFO) versus existing MF schemes