Kotak Mahindra Bank announced a hike in interest rates on various tenor savings accounts and fixed deposits (FDs).
After this, the repo rate has been increased by 50 basis points (bps) by the Reserve Bank of India in its recent Monetary Policy Committee meeting.
For deposits in above savings account 50 lakhs, the revised applicable interest rate is 4% p.a. but for deposits 50 lakhs, it is 3.5% per annum. These revised interest rates on savings account will be applicable from June 13, 2022.
For fixed deposits less than 2 crore, interest rates have been revised in the range of 10-15 basis points (bps) for tenors starting from 365-day FD to 10-year FD. The revised interest rate for 10-year FDs in this category will be 5.9% per annum.
For deposits greater than or equal to 2 crore and below 5 crore, interest rates have increased by 15-25 bps across all tenures. The highest FD rate in this category is 5.9% per annum for tenures ranging from 5 years to 7 years.
For deposits greater than or equal to 5 crore, interest rates have been increased by 25 bps across all tenures. FDs of 5 years to 7 years in this category get an interest rate of 5.85% per annum.
The revised interest rates on fixed deposits will be applicable from June 10, 2022.
Talking about the hike in interest rates, 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 that meet their needs. In line with this principle, we have revised our savings account interest rate up to 4% p.a. (for the above savings account deposits) 50 lakh) as well as increased our fixed deposit rates for different tenors so that our customers can enjoy higher interest rates.”