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Kotak Mahindra Bank announced a rise in interest rates on savings accounts and fixed deposits (FD) across various tenors.
This is followed by a repo rate hike of 50 basis points (bps) by the Reserve Bank of India in its recent Monetary Policy Committee meeting.
For savings account deposits above ₹50 lakh, the revised applicable interest rate is 4% per annum. But for deposits up to ₹50 lakh, it is 3.5% per annum. These revised interest rates on the savings account will come into effect on 13 June, 2022.
For Fixed deposits less than ₹2 crore, the interest rates are revised for tenures starting from 365- day FD to 10-year FD in the range of 10-15 basis points (bps). The revised interest rate for a 10-year FD in this category will be 5.9% per annum.
For deposits more than or equal to ₹2 crore and less than ₹5 crore, the interest rates across all tenures have gone up by 15-25 bps. The highest FD rate in this category is for tenures - 5-year to 7-year – at the rate of 5.9% per annum.
For the deposits greater than or equal to ₹5 crore, the interest rates are hiked by 25 bps across all the tenures. The 5-year to 7-year FD in this category offers interest rate of 5.85% per annum.
The revised interest rates on fixed deposits will be applicable from June 10, 2022.
Talking about the rise 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 catering to their needs. In line with this philosophy, we have revised our savings account interest rate upwards to 4% per annum (for savings account deposits above ₹50 lakh) as well as hiked our term deposit rates for various tenors enabling our customers to enjoy higher interest rates."