The Hindu Business Line : Hike FCNR, NRE deposit rates

Karur-based banks - Karur Vysya Bank and Lakshmi Vilas Bank - have hiked the interest rate on the NRE and FCNR (B) term deposits from June 1. Both banks have effected a uniform rate hike on the NRE term deposit to 6.40 per cent (6.30 per cent) for tenure between one and three years and to 6.50 per cent (6.40 per cent) for maturity of 3 years and above. After the June revision, there is no difference in the FCNR (B) deposit rates between both banks. The rate increase varies between 8 and 11 basis points, with the longest tenure deposits (5 years and above) attracting 8 basis point rise, while deposits maturing between one and three years attracting 10 basis point increase.

State Bank of Hyderabad (has announced a revision in interest rates on NRE and FCNR deposits with effect from June 1. In terms of this, the NRE rates for one year to less than two years were increased to 6.43 per cent from 6.33 per cent, for two years to less than three years at 6.43 per cent (6.34 per cent) and for three years to five years at 6.45 per cent (6.35 per cent).

Tamilnad Mercantile Bank has hiked the interest rate by 10 basis points for all maturity periods on its Non-Resident External (NRE) term deposits. The rate of interest now for NRE term deposits for 1 year to below 3 years stands at 6.40 per cent and for 3-year deposits the bank offers 6.45 per cent. The bank has also hiked the interest rates on its (FCNR-B) term deposits also with effect from June 1for various maturity periods.

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Hike FCNR, NRE deposit rates