Federal Bank hikes NRE deposit rates

Private sector lender Federal Bank has hiked the deposit rates for its non-resident customers.

The Kerala-based bank has invited deposits for a special term of 1,111 days from its non-resident customers from September 9, 2013.

The deposit titled NRE (Non-Resident - External) Fortune Deposit is offered at an interest rate of 10 per cent. For all other maturities (longer or shorter), the interest rate will be 9.5 per cent or less, the bank said in a statement.

The interest accrued can be withdrawn and repatriated or re-invested as per customer’s choice, the statement said.

The deposit is 100 per cent tax free and premature withdrawal is also permitted. However, if the deposit is closed before one year, no interest shall be payable, the bank said.

The scheme is likely to be withdrawn after the festival season.

Source: thehindubusinessline