Latest personal finance news and trends in India
Non-Resident External (NRE) and Foreign Currency Non-Resident fixed deposit rates have been cut by banks in India effective from April 1, 2009.
The new NRE interest rates are as follows:
|1 year to less than 2 years||3.72|
|2 years to less than 3 years||3.15|
|3 years to less than 5 years||3.45|
The new FCNR fixed deposit rates are as follows:
|1 year to less than 2 years||2.97||2.83||3.07||2.98||4.92||1.94|
|2 years to less than 3 years||2.40||2.82||3.12||1.92||4.38||1.78|
|3 years to less than 4 years||2.70||3.16||3.50||2.22||4.83||1.85|
|4 years to less than 5 years||2.99||3.45||3.82||2.43||5.23||1.92|
NRE accounts are held in rupees and both the deposit amount and interest are completely repatriable. FCNR accounts are held in a foreign currency and in these accounts as well both the fixed deposit amount as well as interest earned are repatriable. Both NRE and FCNR accounts are not subject to taxes in India and that forms one of the attractions of these accounts to NRIs.
Note that all banks in India (public sector, private sector and foreign) offer the same interest rates on NRE and FCNR fixed deposit accounts. Note that you can also open a NRE savings account for which the interest offered is 3.5%. There is no savings account option for FCNR accounts.
Ratekhoj is a source for the latest NRE and FCNR fixed deposit interest rates.
The Indian rupee has weakened today against the US dollar to a level of Rs. 50.91/92 per dollar on increased demand for the dollar from importers as well as weaker trends in the the domestic stock markets. The rupee is however off its lowest levels of Rs. 52.20 per dollar hit in early March.
A stronger rupee helps importers but it hurts exporters of products from India.