State Bank of India, the Nation's biggest Public Sector Bank, has raised interest rates on deposits of Non Resident external (NRE) (rupee) term deposits. Accordingly, for NRE deposits of one year to less than two years, the rate has been increased to 3.08 per cent from 2.49 per cent while for two years to less than three years, it has been revised from 2.50 per cent to 3.18 per cent.

For three to five year, the new rate is 3.45 per cent as against the earlier 2.81 per cent, the release said.

The upward revision in rates is with effect from May 1, an official release said.

Similar hikes have also been made in Foreign Currency Non Resident (FCNR) deposits held in US Dollars, Pound Sterling, Euro, Australian Dollar, Canadian Dollar and Yen.

For FCNR (B) deposits (USD), for a maturity period of two year to three years and three years to four years, the new rates applicable are 2.43 per cent and 2.70 per cent respectively as against the earlier 1.75 per cent and 2.08 per cent respectively.

For four to five years deposits, interest rates have been raised to 2.93 per cent from 2.35 per cent. While, for five years deposits, interest rates have been raised to 3.11 per cent from 2.65 per cent.

Recently, Union Bank of India (UBI) increased interest rates on its non-resident external (NRE) (rupee) term deposits and foreign currency non-resident (FCNR) deposits.