Indian banks hike FCNR, NRE deposit rates

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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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