Indian Overseas Bank lifts FCNR(B) USD deposit rates 6.5% yearly
Indian Overseas Bank (IOB) just bumped up its interest rates for Foreign Currency Non-Resident Bank, FCNR(B), deposits.
If you park your US dollars with IOB for three, four, or five years, you can now earn 6.5% per year, among the highest currently being offered by Indian banks on FCNR(B) deposits.
Shorter tenures have also been updated: one-year deposits get 5%, while one- to two-year and two- to three-year deposits offer 4.5% and 3.2%.
RBI allows hedging cover on FCNR(B)
These changes follow the Reserve Bank of India's recent policy tweak, which lets banks cover hedging costs on fresh FCNR(B) deposits with maturities of three to five years between June 8 and September 30.
The goal? Attract more foreign currency and help keep the rupee steady.
Rates for euro and pound deposits haven't changed this time around.