Kotak Mahindra Bank has announced an increase in deposit rates for retail customers, following a surprise 40 basis points (bps) hike in the repo rate by the RBI. The new rates are applicable on all deposits of less than Rs. 2 crore and will be applicable from May 6.
According to the press release, the interest rate on popular, 390-day (12 months and 25 days) deposits has been increased by 30 bps to 5.5% and on 23-month deposits by 35 bps to 5.6%. As per the revised rates, the bank will offer other deposits such as 364-day deposit of 5.25% and 365-day – 389-day deposit of 5.4%. Senior citizen customers, i.e. customers of 60 years and above will get an additional 50 bps at these rates.
ICICI Bank has also increased its deposit rates from May 5. For example, for a single deposit of Rs. 2 crore and above but less than Rs. 5 crore, 185-day to 210-day deposit will offer 3.75% and 271-day to 289-day deposit will offer 4%. Interest rates on single deposits of less than Rs. 2 crores were last revised on January 20.