State Bank of India, the country's largest lender, has raised the interest rate on non-resident external (NRE) rupee deposits of three to fives years maturity to 9.0 per cent from 8.75 per cent, effective today.
The increase in interest rates is applicable to all deposits below Rs15 lakh, SBI said. The 9 per cent interest rate is applicable on all NRE deposits between Rs15 lakh and less than Rs1 crore, the bank said.
SBI has also kept interest rates on all other deposits of various tenors unchanged.
For NRE deposits of 5 to 10 years' maturity, SBI said, the interest rate would be 8.75 per cent.
Interest on NRE term deposits paid quarterly and the principal and interest amount are fully repatriable. A higher rate of interest rate would help the bank avoid repatriation of principal by depositors.
Meanwhile, the State Bank of Bikaner and Jaipur (SBBJ), a subsidiary of SBI, has reduced interest rate on fixed deposits for resident Indians by 0.25 per cent on select maturities.