FD Interest Rates: Good news for bank customers. From SBI, ICICI, Bank of Baroda, so many banks gavemajor gift to its customers. In light of the Reserve Bank’s recent easing of regulations and changes in rules, numerous banks nationwide, such as SBI and ICICI Bank, have raised interest rates on deposits for non-resident Indians.
This initiative is designed to draw foreign currency into the nation. Earlier, the RBI revealed the establishment of a foreign currency swap window for banks, which will remain open until September 30th. Once this window is activated, banks will no longer have to cover hedging costs associated with these deposits. It is anticipated that this strategy could potentially bring in around $70 billion in foreign currency.
Several banks, including sbi, have introduced a new Foreign Currency Non-Resident (FCNR(B)) deposit scheme featuring enhanced interest rates for non-resident Indians. The rise in interest rates for NRI fixed deposits follows closely after the RBI’s announcement regarding the foreign currency swap window for banks until September 30. This development will remove the necessity for banks to incur hedging costs on these deposits, enabling them to raise deposit rates.
What is the goal of increasing interest rates?
The primary objective of this initiative is to attract foreign currency deposits from non-resident Indians. Experts estimate that this deposit scheme could bring in about $60-70 billion in foreign capital. ICICI Bank has indicated on its website that it is offering a 6.50% interest rate on NRI fixed deposits starting June 11. Furthermore, the State Bank of India (SBI) has launched a new SBI Advantage FCNR (B) deposit scheme, which is available in US dollars for tenures of 3-5 years and includes a one-year lock-in period.
How much is the interest on SBI account
SBI has announced 5.5 per cent interest on deposits above $1 million for 3-4 years, 5.75 per cent for 4-5 years and 6 per cent for 5 years. Bank of Baroda (BoB) said it is offering higher interest rates under the new FCNR (B) deposit scheme on maturities of 3 to 5 years in major foreign currencies including US dollar, British pound sterling (GBP), euro, Australian dollar (AUD) and Canadian dollar (CAD).
Other banks have also increased interest rates
Bank of Baroda has announced that it will offer its customers 6% interest on dollar deposits, 4.75% on GBP and AUD deposits, 5.15% on CAD deposits, and 3.75% on Euro deposits, effective June 11. Similarly, Kotak Mahindra Bank stated on its website that from June 11, it will offer 6% interest on FCNR(B) deposits for 3-5 years for deposits less than $1 million and 6.15% interest on deposits above $1 million. HDFC Bank has also increased its FCNR(B) deposit rate to 6% for 3-5 year terms, effective June 10. This rate will apply to deposits booked between June 10, 2026, and September 30, 2026.
