Public sector lender, Indian Bank has announced a hike in interest rates of NRI deposits namely Foreign Currency Non-Resident (FCNR) (Banking) and NRE (Non-Resident External account) deposits.

The revised rates are to come into immediate effect.

Deposits having tenor of 2 years to less than 3 years will now fetch the depositor an intererst of 1.91%.

The 3-4 year deposits will now have interest of 2.44% associated with them as against 2.24% earlier.

Interest has been raised for the 4-5 year deposit to 2.94% while the deposits of more than 5 year tenor will fetch interest of 3.36%.

The NRE deposit rates have also been hiked in the 1-2 year tenor to 2.54% from 2.52% earlier.

The 2-3 year NRE deposit will bear interest of 2.66% while the interest will be 3.19% for ther 3-5 year deposits.