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Mangalore, Aug 1 Karnataka Bank Ltd has reduced interest rates on NRE and FCNR(B) deposit schemes with effect from August 1.

A bank release said on Wednesday that the interest rate on NRE deposits has been reduced to 5.25 per cent (5.43 per cent) for tenure of one year to less than two years, 5.17 per cent (5.43 per cent) for two to less than three years, and 5.21 per cent (5.46 per cent) for three to five years.

In the case of FCNR(B) deposits, the interest rate on dollar deposits for tenure of one year to less than two years is 4.5 per cent (4.68 per cent), two to less than three years 4.42 per cent (4.68 per cent), three to less than four years 4.46 per cent (4.71 per cent), four to less than five years 4.54 per cent (4.75 per cent) and five years only 4.61 per cent (4.79 per cent).

Interest rate on pound deposits for tenure of one year to less than two years is 5.54 per cent (5.57 per cent), two to less than three years 5.46 per cent (5.55 per cent), three to less than four years 5.45 per cent (5.56 per cent), four to less than five years 5.42 per cent (5.52 per cent) and five years only 5.37 per cent (5.47 per cent).

Interest rate on euro deposits for tenure of one year to less than two years is 3.79 per cent (3.78 per cent), two to less than three years 3.9 per cent (3.96 per cent), three to less than four years 3.92 per cent (four per cent), four years to less than five years 3.93 per cent (4.01 per cent) and five years only 3.94 per cent (4.03 per cent), the release added.

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