The Hindu Business Line : More banks raise NRE, FCNR rates

A number of banks have hiked the interest rates on NRE fixed deposits and FCNR deposits with effect from January 1. The banks are ICICI Bank, Andhra Bank, Union Bank, Dena Bank, Karnataka Bank, Federal Bank, Canara Bank, Punjab National Bank and State Bank of Travancore.

ICICI Bank has hiked its interest rates on NRE fixed deposits and FCNR deposits. The bank has increased rates on NRE deposits by up to 19 basis points across various maturities, said a press release by the bank.

The rates on deposits with maturity of 18 months and above but less than 24 months and 24 months and above but less than 36 months is at 6.33 per cent per annum (6.12 per cent) and 6.16 per cent per annum (6 per cent) respectively.

Interest rates on one-year FCNR deposits denominated in dollars have been increased to 5.33 per cent per annum.

Union Bank of India and Dena Bank have increased the interest rates on NRE term deposits and FCNR deposits across various maturities. The rates on NRE deposits with maturity of one year to less than two years and two years to less than three years is now at 6.33 per cent per annum (6.24 per cent) and 6.16 per cent per annum (6 per cent) respectively. Interest rates on one-year to less than two years FCNR deposits denominated in US dollars have been raised to 5.33 per cent per annum (5.24 per cent).

Andhra Bank has revised rates of interest of Non-Resident (External) rupee accounts (NRE Accounts) term deposits from January 1. With this revision, the interest rates offered on NRE term deposits of different maturity are:

I year to less than 2 years... ... 6.33 per cent (6.24 per cent)

2 years to less than 3 years... ... .6.16 per cent (6 per cent)

3 years and above ... ..6.08 per cent (5.91 per cent)

The revised interest rates are applicable to all fresh deposits and renewals of the existing ones with effect from January 1, a bank press release said.

Karnataka Bank Ltd has increased interest rates on its NRE and FCNR (B) deposit schemes with effect from January 1.A bank release said here that the interest rate on NRE deposits has been revised to 6.33 per cent (6.24 per cent) for tenure of one year to less than two years, 6.16 per cent (6 per cent) for two to less than three years, and 6.08 per cent (5.91 per cent) for three to five years.

In the case of FCNR (B) deposits, the interest rate on dollar deposits for tenure of one year to less than two years is 5.33 per cent (5.24 per cent), two to less than three years is 5.16 per cent (5 per cent), three to less than four years is 5.08 per cent (4.91 per cent), four to less than five years is 5.07 per cent (4.89 per cent), and five years only it is 5.09 per cent (4.90 per cent).

Federal Bank has raised the interest rates for NRE and FCNR deposits with effect from January 1. For NRE deposits of one-to-two year maturity, the rates have been revised to 6.33 per cent (6.24 per cent), for two-to-three years it is 6.16 per cent (6 per cent) and for three years and above it is 6.08 per cent (5.91 per cent).

The FCNR dollar deposits with one-to-two year maturity have been raised to 5.33 per cent (5.24 per cent), two-to-three years to 5.16 per cent (5 per cent), three-to-four years to 5.08 per cent (4.91 per cent) and five years and above to 5.09 per cent (4.90 per cent). The FCNR British pound of one-to-two year maturity has been revised to 5.58 per cent (5.43 per cent), two-to-three years to 5.53 per cent (5.36 per cent), three-to-four years to 5.51 per cent (5.32 per cent) and above five years to 5.41 per cent (5.22 per cent), a press release from the bank said.

Canara Bank has revised upwardly interest rates applicable for NRE (Rupee) and FNCR (B) deposits for various maturities with effect from January 1. For NRE (Rupee) deposits, the new rates will be 6.33 per cent (6.24 per cent existing) for a period of one year and above but less than two years; 6.16 per cent (6.00 per cent) for a period of two years and above but less than three years; and 6.08 per cent (5.91 per cent) for a period of three years. Dollar deposits will attract 5.33 per cent (one year and above but less than two years); 5.16 per cent (two years and above but less than three years); 5.08 per cent (three years and above but less than four years); 5.07 per cent (four years and above but less than five years); and 5.09 per cent (five years only). These will be 5.58 per cent, 5.53 per cent, 5.51 per cent, 5.47 per cent and 5.41 per cent respectively for Pound Sterling; and 4.02 per cent, 4.12 per cent, 4.13 per cent, 4.11 per cent and 4.12 per cent for Euro. RFC deposits will attract 5.33 per cent (one year and above but less than two years); 5.16 per cent (two years and above but less than three years); and 5.08 per cent (three years only) for Dollar; 5.58 per cent, 5.53 per cent and 5.51 per cent for Pound Sterling; and 4.02 per cent, 4.12 per cent and 4.13 per cent for Euro.

State Bank of Travancore (SBT) has announced revision in the FCNR/NRE deposits with effect from January 1. The rate for term deposits of one year to less than two years has been fixed at 6.33 per cent; two years to less than three years at 6.16 per cent; and 6.08 per cent for three years and above to five years. Interest rate for FCNR deposits in Dollars will be 5.33 per cent for a period of one year to less than two years; 5.16 per cent for two years to less than three years; 5.08 per cent for three years to less than four years; 5.07 per cent for four years to less than five years; and 5.09 per cent for five years. For Pound Sterling, the respective rates will be 5.58 per cent; 5.53 per cent; 5.51 per cent; 5.47 per cent and 5.41 per cent. For Euro, these are 4.03 per cent; 4.12 per cent; 4.13 per cent; 4.11 per cent; and 4.12 per cent.

Punjab National Bank (PNB) has raised the interest rate on foreign currency non-resident (banks) deposits scheme for US dollar, British pounds, Euro, Australian dollar and Canadian dollar deposits with effect from January 1 this year.

It has also raised the interest rates on non-resident external (NRE) term deposits to 6.33 per cent for maturities of 1 year to less than 2 year, 6.16 per cent for maturities of two years to less than three years and 6.08 per cent for maturities of three to five years.

A PNB release said that interest rate on US dollar deposits under the FCNR (B) deposits scheme has been revised to 5.33 per cent for maturity of 1 year to less than 2 years (1st maturity), 5.16 per cent for 2 years to less than 3 years (2nd maturity), 5.08 per cent for three years to less than 4 years (3rd maturity), 5.07 per cent for 4 years to less than 5 years (4th maturity) and 5.09 per cent for five years (5th maturity).

The interest rate on GBP deposits has been revised to 5.58 per cent for 1st maturity, 5.53 per cent for 2nd maturity, 5.51 per cent for 3rd maturity, 5.47 per cent for 4th and 5.41 per cent for 5th maturity. The interest rate on Euro deposits has been revised to 4.02 per cent for 1st maturity, 4.12 per cent for 2nd maturity, 4.13 per cent per cent for 3rd maturity, 4.11 per cent for 4th maturity and 4.12 per cent for the 5th maturity.

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