Federal Bank has introduced special interest rates for their NRE fixed deposits where it is offering up to 80 basis points more in interest than existing rates in the category, according to a press release.
According to the press release, “It is an exciting opportunity for non- residents to invest their funds as the interest earned is exempt from Income Tax and loan can be availed up to 90% of the deposit amount.” offers 5.60 percent for one-two year maturities to domestic investors with deposits of less than Rs 2 crore.
Interest rates for NRE Fixed Deposits
The Federal bank offers interest rates on NRE starting from 5.45 percent to 6.40 percent for tenure one year to above 75 months.
Banks try to attract dollar inflows
recently launched a dedicated two-day window to mobilise NRE deposits, giving up to 50 basis points more in interest than current rates in the category, a news report in the Economic Times stated.
“HDFC Bank expects overseas Indians to utilise the special window and buy NRE deposits for 12 to 15 months. The window will be available on July 27 and 28 for NRE fixed deposits where non-resident Indians can invest in rupees.”
“Relationship managers are reaching out to the Indian diaspora across the world, urging them to invest,” stated the ET news report.