Indian Bank has raised interest rates on its foreign currency deposits. The deposit rates have been increased for Foreign Currency Non Resident Bank deposits and Non Resident External Rupee deposits.

FCNR bank deposits entertain deposits in foreign currency while NRE deposits entertain the same in Indian rupee.

State Bank of India has also hiked its foreign currency deposit rates from the month of April 2010.

The bank has revised interest rate on FCNR (B) deposits to 1.92% for deposits having a tenor from 1 year to 2 years. The current interest rate for the same tenor is 1.84%.

Deposits maturing from two years to less than three years would fetch the depositor with interest of 2.24 per cent as compared to 2.08 per cent.

Interest rates on deposits for above three years and less than four years have also been incremented to 2.84 per cent against 2.69 per cent.

For deposits of four years and above but less than five years, the rate has been fixed at 3.75 per cent compared to 3.20 per cent now.

The NRE term deposits would fetch interest of 2.67% for one year and less than two years as compared to the present rate of 2.59%.

The interest rate on NRE deposits above two years but less than three years has been fixed at 2.99 per cent against 2.83 per cent.

For three years above but less than five years, the interest rate in NRE deposits has been increased to 3.59 per cent against 3.44 per cent.