by NR INDRAN / INT

Mumbai  – Federal Bank has hiked the interest rates on Non Resident Term Deposits opened for a period of 1 year to 6.5%. The rate for the same period before the hike was 3.82% only.  The unprecedented rate hike is due to the deregulation of interest rates on NRE deposits by the Reserve Bank.

The revised rate is applicable for deposits opened for a period of one year only. Interest rates for all other periods will remain the same.

The hiked rate is applicable for a limited period from 19th December to 31st December 2011 only.

Given below are the Interest rates on NRE Term Deposits

Asset Liability Management Committee (ALCO) in its meeting held on 17.12.2011, reviewed the interest rates on NRE Term Deposits in the context of deregulation interest rates on Non Resident (external) Rupee (NRE) Deposits. The meeting decided to offer 6.50% for ONE year

The revised rate is applicable for deposits opened for a period of one year only.

Interest rate for all other periods will remain the same.

The above rate of interest will be applicable for a limited period from 19.12.2011 to 31.12.2011.

Federal Bank is a leading private sector bank in the country with branch network of more 823 and 867 spread across the country. In June 2010, Federal Bank became part of National Financial Switch ATM Network – the largest ATM network in India. Federal bank is the first bank in India to launch an instant online remittance solution in association with Visa to the visa debit card holders across the country.

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