With the RBI increasing its policy repo rate by 50 basis points, several banks have started to follow suit by raising their lending and deposit rates. Private sector bank, Kotak Mahindra Bank is the latest to join the bandwagon to hike its interest rates on deposit schemes – savings account on daily balance and fixed deposits for various tenors. Customers will be able to avail attractive rates on their investments.
Kotak hikes interest rates savings accounts Above 50 basis points on daily balance 50 lakh from June 13. While the bank increased fixed deposit interest rates by 10 to 25 basis points from June 10.
Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank said, “Interest rates are now on an upward trend. For Kotak, customer centricity has been the core of all our initiatives and as their trusted banking partner, we strive to empower our customers with products and services that meet their needs. In line with this principle, we have revised our savings account interest rate to 4% p.a. as well as increased our fixed deposit rates for various tenors so that our customers can enjoy higher interest rates.”
Savings Account Deposits:
The bank will offer 4% p.a. interest rate on the above savings account deposits 50 lakhs from the present 3.50%.
However, the rates will be kept unchanged at 3.5% on deposits up to 50 lakhs.
Fixed deposit Rate of interest:
FD below 2 crores:
On FD below 10th June 2 crore, Kotak will offer a rate of 5.50% on tenures of 365 days – 389 days from the current 5.40%, while the rate will be 5.65% on 390 days (12 months 25 days) and 391 days – less than 23 months at the current 5.5% .
Kotak will offer 5.75% interest rate from the current 5.60% for tenures of less than 3 years starting from 23 months. The interest rate will be 5.90% from the current 5.75% on tenure of less than 3 years or less than 10 years.
However, interest rates for less than 390 days tenure have been kept unchanged. The bank will continue to offer a rate of 5.25% on a tenure of 1 year, while the rate will remain at 4.75% with a tenure of 180 days to 363 days. On maturity from 91 days to 179 days, the bank offers 3.50%, meanwhile, on tenures ranging from 31 days to 90 days – the rate is 3%. The lowest interest rate is 2.50% and it is offered on the shortest tenure ranging from 7 days to 30 days.
Senior citizens opening their FDs below 2 crore will also earn an additional rate of 50 basis points.
between FD less than 2 crore 50 million:
From tomorrow, the interest rate on the tenure of 7 days to 30 days will be 3.25% from the current 3%. The bank will offer a rate of 3.25% to 3.50% on a tenure of 31 days to 60 days.
The 3.75% rate on FDs maturing in 61 days will be 3.50% up to 90 days, further, the rate of 4.25% will be offered on 91 days from the current 4% to 120 days, and 4.50% on 121 days. Tenure of 179 days from the present 4.25%. FDs with 180 days maturity will be offered an interest rate of 5%; 181 days 270 days; and 280 days 364 days as compared to current 4.75%.
The bank will offer a tenure of 279 days at the rate of 3.25% on 271 days from the current 3%. Further, on maturity from 2 years to less than 3 years, the rate will be 5.85% from the current 5.6%.
Interest rate of 5.75% will be offered starting from 365 days to less than 2 years from the current 5.5%. The interest rate on 3-year FDs will be 5.90% from the current 5.75% for 7 years.
up FD 50 million:
The interest rate will be 3.25% (from current 3.50%) on 7 days 14 days, 3.50% (from current 3.25%) on maturity of 15 days – 30 days, and 3.75% (from current 3.50%) on maturity of 31 days – 45 days.
An interest rate of 4% will be offered on a tenure of 46 days to 90 days from the current 3.75%. The rate of interest will be 4.65% from the current 4.40% on tenures of 91 days to 120 days, and on FDs with maturities of 121 days to 179 days, this rate will be from the current 4.60% to 4.85%.
FD rates on FDs from 180 days to 270 days will be 5.15% (from the current 4.90%); and 280 days to 364 days. On FDs from 271 days to 279 days, this rate will be 3.25% from the current 3%.
The FD rates for 365 days to less than 2 years will be 5.75% from the current 5.5%, and the interest rate will be 5.85% from 2 years, covering a tenure of 7 years from the current 5.60%.
On Wednesday, the RBI raised the policy repo rate by 50 basis points to 4.90% from the previous 4.4%. Meanwhile, the MPC also decided to focus on the return of housing to ensure that inflation remains within the target while supporting growth.