Many banks in India have raised the interest rates for Non Resident External (NRE) and Foreign Currency Non Resident (FCNR) fixed deposit accounts effective from November 17, 2008. NRE accounts are rupee denominated accounts that can be opened by Non Resident Indians and have fixed deposit terms ranging from 1 year to 5 years. FCNR accounts can be opened by Non Resident Indians and are denominated in 6 different foreign currencies - US Dollars, Canadian Dollars, Euros, Sterling Pounds, Australian Dollars and Japanese Yen.

NRE term deposits for a period of 1 year to 2 years will now yield 4.92%, while those for a term of 2-3 years will yield 4.41%. NRE deposits for a period of 3 years upto 5 years will now give an interest of 4.89%.

FCNR accounts denominated in US dollars will yield 4.17% for a term of 1 to 2 years, 3.66% for a term of 2 years to 3 years,  4.14% for a term of 3 years to 4 years, 4.49% for a term of 4 years to less than 5 years and 4.76% for a term of 5 years. The table given below gives the complete table of FCNR interest rates:

Most banks offering FCNR and NRE accounts in India have announced this increase in interest rates including State Bank of India, Syndicate Bank, Allahabad Bank, Bank of Baroda, Corporation Bank and State Bank of Mysore.

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