Kotak Mahindra Bank raises interest rates on term deposits

Kotak Mahindra Bank has announced an increase in interest rates on savings accounts and term deposits (FD) with different maturities.

This is followed by a 50 basis point (bps) repo rate hike by the Reserve Bank of India at 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 is 3.5% per annum. These revised interest rates on the savings account will come into effect on June 13, 2022.

For term deposits below 2 crore, interest rates are reset for terms ranging from 365 days FD to 10 years FD within a range of 10 to 15 basis points (bps). The revised interest rate for a 10-year FD in this category will be 5.9% per annum.

For deposits greater than or equal to 2 crores and less than 5 crore, interest rates on all warrants increased by 15 to 25 basis points. The highest rate of FD in this category is for terms – 5 to 7 years – at the rate of 5.9% per annum.

For deposits greater than or equal to 5 crore, interest rates are increased by 25 basis points on all terms. The 5-7 year FD in this category offers an interest rate of 5.85% per annum.

The revised interest rates on term deposits will apply from June 10, 2022.

Speaking about rising interest rates, Shanti Ekambaram, Group President – Consumer Banking, Kotak Mahindra Bank, said, “Interest rates are now on an upward trajectory. For Kotak, customer focus has been at the heart of all our initiatives and as a trusted banking partner, we strive to provide our customers with products and services that meet their needs. In keeping 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 increased our term deposit rates for different maturities enabling our customers to benefit from higher interest rates.”

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