The Hindu : Business : Canara Bank cuts interest rates on NRE, FCNR (B) deposits

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Saturday, Sep 02, 2006

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Canara Bank cuts interest rates on NRE, FCNR (B) deposits

Special Correspondent

THIRUVANANTHAPURAM: Canara Bank has brought down the interest rates on NRE deposits with effect from September 1.

Interest rate on NRE (rupee deposits) goes down to 6.41 per cent from 6.54 per cent for periods ranging from one year to less than two years.

The revised rates are 6.24 per cent (down from 6.44 per cent) for periods ranging from two years to three years and 6.2 per cent (down from 6.42 per cent) for three years.

In a press release on Friday, the bank said the interest rates on FCNR (B) deposits too have been revised with effect from September 1.

The new interest rates on FCNR deposits in US dollar (with the period mentioned in brackets) are: 5.41 per cent (one year to less than two years); 5.24 per cent (two years to less than three years); 5.18 per cent (three years to less than four years); 5.2 per cent (four years to less than five years); and 5.22 per cent (five years).

FCNR deposits in pound sterling will have interest rates of 5.24 per cent, 5.2 per cent, 5.18 per cent, 5.14 per cent and 5.11 per cent for the respective periods.

The corresponding rates for deposits in euro are 3.63 per cent, 3.75 per cent, 3.78 per cent, 3.81 per cent and 3.85 per cent.

For FCNR deposits in Canadian dollar, the interest rates are 4.34 per cent (one year to less than two years), 4.28 per cent (two years to less than three years) and 4.29 per cent (three years to less than four years). Australian dollar deposits will get 6.35 per cent (one year to less than two years), 6.25 per cent (two years to less than three years) and 6.24 per cent (three years to less than four years).

The bank has increased the interest rates on domestic term deposits to four per cent on deposits for seven to 14 days, 4.75 per cent for 15 to 45 days, 5.25 per cent for 46 to 90 days, 5.75 per cent for 91 to 179 days, six per cent for 180 to less than one year, seven per cent for one year to less than three years and 7.5 per cent for three years and above.

Preferential rates are offered for domestic term deposits above Rs.15 lakh and up to Rs.2 crore and for senior citizens.

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