SBI raises FCNR, NRE deposit rates

Mumbai: The State Bank of India, the country's largest lender, has announced a hike in interest rates on deposits of non-resident Indians with effect from May 1.

SBI raised the interest rates on non-resident external (NRE) rupee deposits of one year to less than two years to 3.08 per cent from 2.49 per cent, for two years to less than three years to 3.18 per cent from 2.5 per cent and for three to five years to 3.45 per cent from 2.81 per cent.

The bank has also hiked interest rates on foreign currency non-resident (FCNR) deposits held in US dollars, pound sterling, euro, Australian dollar, Canadian dollar and the Japanese yen.

The US dollar deposits of one to two years will earn interest of 2.33 per cent as against 1.74 per cent. Interest rate on deposits of two to three years has been raised to 2.43 per cent from 1.75 per cent, three to four years to 2.7 per cent from 2.08 per cent and on deposits of four to five years to 2.93 per cent from 2.35 per cent.

For five years deposits, interest rates have been raised to 3.11 per cent from 2.65 per cent.