Banks hike interest rates on deposits for NRIs

DCB Bank today announced an increase in it’s NRE Fixed Deposit Interest Rates.The new yields are in the range from 10.83 percent per annum to 15.57 percent per annum. DCB NRE FD interest rates range from 9.50 percent to 10.25 percent per annum for varying duration of more than two years to 10 years.

IDBI bank yesterday announced it has increased interest rates on its foreign currency for non-resident FCNR (B) and non-resident external (NRE) deposits across select maturity buckets. This move comes in place with the objective of bringing in foreign currency inflow from the NRI investors.

[caption id=“attachment_1053049” align=“alignright” width=“380”]  IDBI Bank logo. Image courtesy IDBI Bank[/caption]

As per the press statement the banks has hiked it’s FCNR (B) deposit rates for tenor of 3 years and above, by 100 basis points. This hike is across all nine currencies.

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

Even the NRE deposits rates have been hiked in the range of 25 to 50 basis points, for tenor of more than 3 years to 7 years. The new rates will be effective from, August 20, 2013, shall be valid up to November 30, 2013.

Earlier this week, Dena Bank, had also revised the rate of interest on FCNR (B)/RFC term deposit, by as much as 100 basis points. For instance, FCNR (B) deposits of 3 years to less than 4 years, in US Dollar terms, the revised interest rates are now 4.78 percent as compared to 3.78 percent previous rates for August 1-18, 2013.