State Bank of India [Get Quote] has hiked interest rates on its FCNR (B) and NRE (Rupee) deposits.

The hike has come into effect from July 1, a press release issued in Mumbai on Monday stated. USD-denominated FCNR (B) deposits of maturities of one year and above but less than two years and two years and above but less than three years, have been revised upwards to 4.68 per cent from 4.64 per cent and 4.57 per cent respectively.

For maturities of three years and above but less than four years and four years but less than five years, the rate has been hiked from 4.55 per cent to 4.71 per cent and 4.75 per cent respectively.

For a maturity of five years, the new rate is 4.79 per cent as against the earlier 4.57 per cent. With regard to NRE (Rupee) term deposit rates, for a duration of one year to less than two years and for two years to less than three years, the interest rates have been revised upwards to 5.43 per cent from 5.39 per cent and 5.32 per cent respectively.

For three to five years duration, the new rate is 5.46 per cent as against the earlier 5.30 per cent.

UBI follows suit: Union Bank of India [Get Quote] revised interest rates on its FCNR (B) and NRE (Rupee) term deposits on Monday. The revision comes into effect from July 1, UBI said in a press release.

For USD-denominated FCNR (B) deposits of maturities of one year to less than two years and two years to less than three years, the rate has been revised to 4.68 per cent from 4.64 per cent and 4.57 per cent respectively.

For three years to less than four years and four years but less than five years, the new rates applicable will be 4.71 per cent and 4.75 per cent respectively as against the earlier 4.55 per cent.

For five years, the revised rate is 4.79 per cent as against the earlier 4.57 per cent. With respect to NRE (Rupee) term deposits, for a tenure of one year but less than two years and two years but less than three years, the revised rate is 5.43 per cent from the earlier 5.39 per cent and 5.32 per cent respectively.

For three years but less than four years, the new rate is 5.46 per cent as against 5.30 per cent.