Federal Bank Offers Higher NRE Rates For Limited Period: Check Details

The private sector lender on Thursday notified special interest rate for its NRE term deposits. Also the said rates shall be on offer for a limited span till August 4, 2022, said the bank statement.

Federal Bank Offers Higher NRE Rates For Limited Period: Check Details

"The rates are applicable for NRE term deposits opened for a period of 15 months and are 80 basis points (bps) above the existing rates," the bank said.

For the tenure of 15 months, the bank would fetch a rate of 6.65%. This is for deposits of Rs. 2 crores and more. Likewise, for 15 months tenure and deposits of below Rs. 2 crore, the rate shall be 6.4%.

The interest earned here is exempt from income tax and loan can be availed up to 90 percent of the deposit amount, the bank said.

NRE account is an account opened by NRIs and is denominated in rupee currency. This is to primarily enable deposit of foreign currency. Herein at the time of account setting, the foreign currency is converted into rupee. The drawback of this account that any loss due to currency risk is to be borne by the depositor. Plus there is no premature withdrawal option available with such a account.

The rates are being offered in order to attract more foreign currency into the country.

GoodReturns.in