Public sector banks hike interest rate on FCNR deposits

Two public sector banks PNB and Dena bank have raised their FCNR and NRE term deposit rates after the announcement of an increase in interest rate ceiling by 50 basis points on non-resident deposits by the Reserve Bank of India.

Both the banks have increased rates by half a percentage points on non-resident deposit schemes across all maturities in dollar, British pound, euro and Australian and Canadian. The increase will be with immediate effect.

According to banks statements on the dollar deposits the interest rate has been hiked to 4.21 per cent for a maturity of 1-2 years from 3.71 per cent. For the maturity of 2-3 years, the rate has been revised to 3.52 per cent, as against 3.02 per cent.

While on the tenure of 3-4 years, the interest rate has been raised to 3.81 per cent from 3.31 per cent and on 4-5 years term deposit the new rate is at 3.95 per cent and the rate for fixed deposit for five years has been hiked at 4.14 per cent.