|State Bank of India (SBI) has announced a hike in interest rates on non-resident external (NRE) deposits for 3 years to 5 years maturity. The bank raised the existing rates of 8.75 by 25 basis points to 9%.
The new rates would be applicable only for deposits below Rs. 15 lakh. The new rates were effective from July 17 2012. The bank kept the other rates on the card unchanged.
For other tenors on NRE term deposits the bank is offering 8.75% for 5 years to 10 years, and 9% on deposits of 1 year upto 3 years. The interest rates on deposits of Rs. 15 lakh above and up to Rs. 1 crore is flat 9% on all maturities.
NRE deposits are deposits in Indian Rupees meant exclusively for nonresident Indians (NRI). The interest is paid quarterly. Both interest and principal are fully repatriable.