Search

SBI, Kotak Mahindra Announce Hike in NRE Deposit Interest Rates

Wednesday, December 28, 2011
Print Print Email Email
Bangalore: The country's largest lender State Bank of India (SBI) and a few other banks, including Kotak Mahindra Bank,announced a sharp hike in interest rates offered on non-resident external (NRE) deposits. SBI raised the interest rates on fixed deposits by non-resident Indians of less than Rs.1 crore with a maturity of one to two years to 9.25 per cent, as against 3.82 per cent earlier. However, NRE term deposits above Rs 1 crore and of the same maturity will attract 9 percent interest with effect from January 1, 2012, SBI said in a statement. The statement further said term deposits between 2-3 years and 3-5 years' tenure will also earn 9.25 percent interest. The revised deposit rates will apply only to fresh deposits and on renewal of maturing deposits, it said. No interest is payable if the deposit is withdrawn before one year, it said, adding that in other cases of premature withdrawal, the interest paid shall be 0.5 per cent below the rate applicable for the period the deposit has remained with the bank. Banks are offering such high rates because of the sharp depreciation of the rupee in the past few months. There has been a considerable spike in inflows since the rupee fall, one analyst said, opining that such high rates will not last long. Mumbai-based Kotak Mahindra Bank has also hiked interest rates on NRE deposits with a maturity of one to two years to 9.25 per cent with effect from today, while the rate for deposits of 2-3 years' tenure will be 9 percent, the bank said in a release. Another private sector lender, Federal Bank also revised the interest rate on NRE deposits of select maturities. NRE deposits with a maturity of less than year will earn 8.25 per cent to 9.10 percent interest at the bank, depending on the amount.
Source: PTI
Looking For Loan? Let us Help you !!!
Product
Name
City
Phone
Email
Loan Amount
Annual Income
Preferred banks
Captcha
Type the characters you see in the picture
  Submit
SPOTLIGHT
Bharti Airtel board approves
Telecom major Bharti Airtel on Thursday said its board of directors has approved fund raising ..
Banks need to raise own capital
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth ..
Brookfield to buy RIL E-W Pipeline
Canadian investor Brookfield has acquired the loss-making East-West Pipeline Ltd from Mukesh Amba..
90% of developing economies
Ninety per cent of developing economies, including India are falling behind or are at risk of fall..
Previous
Next