Kotak raises interest rates on savings accounts by 50 basis points on daily balances above ₹50 lakh with effect from June 13. While the bank hiked fixed deposit interest rates by 10 to 25 basis points with effect from June 10.
Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank said, “Interest rates are now on an upward trajectory. 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 catering to their needs. In line with this philosophy, we have revised our savings account interest rate upwards to 4% p.a. as well as hiked our term deposit rates for various tenors enabling our customers to enjoy higher interest rates."
Saving account deposits:
The bank will offer a 4% per annum interest rate on saving account deposits above ₹50 lakh from the current 3.50%.
However, the rates will be kept unchanged at 3.5% on deposits up to ₹50 lakh.
Fixed deposits interest rates:
FDs below ₹2 crore:
From June 10, on FDs below ₹2 crore, Kotak will offer a 5.50% rate on 365 days - 389 days tenure from the current 5.40%, while the rate will be 5.65% each on 390 Days (12 months 25 days) and 391 days-less than 23 Months tenure from the current 5.5%.
Kotak to offer a 5.75% interest rate from tenures starting 23 months to less than 3 years from the current 5.60%. The interest rate will be 5.90% on tenures from 3 years to less than or equal to 10 years from the current 5.75%.
However, the interest rates below 390 days tenures are kept unchanged. The bank will continue to offer a 5.25% rate on 1-year tenure, while the rate stays at 4.75% from 180 days to 363 days tenure. On maturity from 91 days to 179 days, the bank offers 3.50%, meanwhile, on tenure from 31 days to 90 days - the rate is 3%. The lowest interest rate is 2.50% and is offered on the shortest tenure 7 days to 30 days.
Senior citizens opening their FDs below ₹2 crore will also earn an additional rate of 50 basis points.
FDs between ₹2 crore to less than ₹5 crore:
From tomorrow onward, the interest rate on tenures starting 7 days to 30 days will have an interest rate of 3.25% from the current 3%. The bank to offer a 3.50% rate on 31 days to 60 days tenure from 3.25%.
The rate will be 3.75% on FDs maturing 61 days ‐ 90 days from 3.50%, further, a 4.25% rate will be offered on 91 days ‐ 120 days from the current 4%, and a 4.50% rate will be given on 121 days ‐ 179 days tenure from current 4.25%. A 5% interest rate will be given on FDs maturing 180 days; 181 days ‐ 270 days; and 280 days ‐ 364 days compared to the current 4.75%.
The bank to offer a 3.25% rate on 271 days ‐ 279 days tenure from the current 3%. Moreover, on maturity from 2 years ‐ less than 3 years, the rate will be 5.85% from the current 5.6%.
An interest rate of 5.75% will be offered from tenures starting 365 days to less than 2 years from the current 5.5%. The rate will be 5.90% on FDs maturing 3 years to inclusive of 7 years from the current 5.75%.
FDs above ₹5 crore:
The interest rate will be 3.25% (from current 3%) on FDs maturing 7 Days ‐ 14 days, 3.50% (from current 3.25%) on 15 days - 30 days tenure, and 3.75% (from current 3.50%) on maturity 31 days - 45 days.
An interest rate of 4% will be offered on 46 days to 90 days tenure from the current 3.75%. The interest rate will be 4.65% on 91 days to 120 days tenure from the current 4.40%, and the rate will be 4.85% from the current 4.60% on FDs maturing 121 days to 179 days.
The FD rates will be 5.15% (from current 4.90%) on FDs maturing 180 days to 270 days; and 280 days to 364 days. On FDs maturing 271 days to 279 days, the rate will be at 3.25% from the current 3%.
The FD rates will be 5.75% on 365 days to less than 2 years tenure from present 5.5%, and the interest rate will be 5.85% from 2 years to inclusive of 7 years tenure from present 5.60%.
On Wednesday, RBI increased the policy repo rate by 50 basis points to 4.90% from the previous 4.4%. Meanwhile, the MPC also decided to remain focused on the withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth.
