For all those non-residents who bank with nationalized banks, here is a good news for you. If you have a foreign currency non-resident account (FCNR-B) with State Bank of India (SBI) or Bank of Baroda (BoB), you will be offered more on your deposits with effect form May 28.
SBI has increased the interest rates payable on short to medium term FCNR (B) deposits. The rate of interest on US dollar deposits for a maturity period of one year and above but less than two years has been increased to 6.5 per cent per annum. For two year to three year, the rate has been raised to 6.75 per cent. On Euro deposits, interest rates have been increased by 0.75 per cent across the board for all maturities.
Rates on pound sterling deposits, for a maturity of one year to two year and two to three year has been raised to 6 per cent and 6.1 per cent respectively.
State Bank of Travencore (SBT), subsidiary of SBI has raised the FCNR interest rates for US dollars, which will now fetch a maximum of seven per cent per annum. The rate for one-year deposit has gone up by 0.5 per cent to 6.5 per cent for deposits less than $ 20,000. However for deposits above $20,000 but below $ 50,000, the rate is pegged at 6.75 per cent for similar maturity profile.
BoB has also revised the rate of interest on FCNR (B) deposits. For pound sterling deposits, the rate of interest for the maturity period of one year to less than two year is 5.75 per cent and for two year to less than three year 6 per cent and for three year 6.25 per cent.
For US dollar deposits, the rates have been revised to 6.5 per cent for one year to three year. On deutsche mark deposits, the rates have gone up to 3 per cent for one year to less than two year. On yen deposits, it is 0.2 per cent for one year to less than two year, 3.25 per cent for two year to less than three year and 3.5 per cent for three year.
For Euro, it is 3 per cent for one year to less than two year, 3.25 per cent for two year to less than three year and 3.5 per cent for three year. The revised rates are applicable to fresh deposits and renewals of old deposit.