A number of state-owned banks have revised upwards the interest rates on Non Resident External (NRE) term deposit and foreign currency non resident (FCNR(B)) term deposits to attract more deposits from non residents.

Oriental Bank of Commerce (OBC) has increased the NRE term deposit rate for 1 to 2 years from 8.75% to 9.75 %. For NRE deposits of 2 to 3 years, interest rate has been increased from 8.25% to 9.25% and for 3 to 5 years interest rate has increased from 8 % to 9.25%. These rate changes are effective from January 2.

FCNR (B) deposit rates have been revised on all maturities from one to five years for US Dollars, British pound, Euro, Australian Dollar ,Canadian Dollar and Japanese Yen.

State Bank of Bikaner & Jaipur (SBBJ) today announced hike in NRE rupee term deposit rates to 9.5 % per annum for the period upto five years The revised rates would be applicable from January 1.

Currently, interest rates are 3.82 percent for 1 year to less than 2 years, 3.51 percent for 2 years to less than 3 years and 3.64% for 3 to 5 years’ maturities.

Indian Bank had recently revised the NRE term deposit rates with effect from December 28.

While NRE deposits less than Rs 15 lakhs would get return of 9.5% for 1 year and above and less than 2 years, the same rate of return would be offered for deposits of 2 years and above and less than 3 years. For deposits with maturity of three years and above and upto five years, Indian Bank will provide a return of 9 %.

In the case of NRE deposits above Rs 15 lakhs and upto Rs 5 crore, the interest rates offered will be 9.25%, 9.25% and 9% for maturities of 1-2 years, 2-3 years and 3-5 years.

>krsrivats@thehindu.co.in

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