Banking majors, State Bank of India and Indian Bank have announced rise in their non resident external (NRE) and foreign currency non resident (banking) (FCNR (B)) deposits.
Largest lender of the country, SBI has raised interest on one year NRE deposits to 2.54% from the existent 2.51%. Also deposits having tenor of 2 years will see interest rates getting raised to 2.51% from 2.28% and those having maturity of 3-5 years will now earn 2.79% interest as compared to 2.53% earlier.
The bank has also raised its FCNR deposit rates. For USD based deposits having tenor of 1 year to less than 2 years, interest rates have been raised to 1.79% from 1.76%. Deposits having tenor of 3 years to less than 4 years will earn interest of 2.04% as compared to 1.78% earlier and those maturing in 5 years with have upped rates of 2.73% from 2.47%.
Interest rates on these two deposits have also been hiked by Indian Bank.
For FCNR deposits in USD terms, deposits of maturity between 1 year to less than 2 years will fetch interest of 1.79%. Deposits of 2 years to less than 3 years will earn interest of 1.53% while for deposits of 3 years and above but less than 4 years, the rates has been increased to 2.04% from 1.78 %.
Interest rate will be 2.36% for deposits of 4 years to below 5 years and for those of 5 years tenor, the interest will be 2.73% as against 2.47%.
"The revised interest rate has been fixed at 2.54 per cent for one year and above but less than two years from the existing 2.51 per cent", it said for its raised NRE deposit rates.