After the increase in the repo rate and CRR by the Reserve Bank, banks have been continuously announcing changes in the interest rates of FD. After private sector ICICI Bank, Bandhan Bank and Jana Small Finance Bank, Kotak Mahindra Bank has now announced to increase FD interest rates.
New Delhi. Investing in Fixed Deposit is not only safe but the return on it is also guaranteed. After the increase in the repo rate and CRR by the Reserve Bank, banks have been continuously announcing changes in the interest rates of FD. After private sector ICICI Bank, Bandhan Bank and Jana Small Finance Bank, now another popular private sector bank has announced to increase FD interest rates.
Private sector Kotak Mahindra Bank on Thursday announced an increase in FD interest rates by up to 35 basis points. On Wednesday, the Reserve Bank had increased the repo rate by 40 basis points and the CRR by half a percentage point. With the increase in CRR, the lendable capital with the banks has come down by Rs 87,000 crore. This is the reason why banks are now increasing FD interest rates.
Increase of up to 35 basis points
Kotak Mahindra Bank has issued a statement informing about the change in FD interest rates. The bank has said that the interest rate on deposits of 390 days has been increased by 30 basis points to 5.5 percent. Whereas the bank will now give 35 percent more interest i.e. 5.6 percent interest on FDs with maturity of 23 months. The bank is offering 5.25 percent interest on deposits of 364 days and 5.4 percent on deposits of 365 days to 389 days.
Half percent more interest to senior citizens
Kotak Mahindra Bank has also announced to give 50 basis points more interest on these deposits to senior citizens. Kotak Mahindra Bank has made this increase in interest rates for deposits up to Rs 2 crore. The new rates of the bank will be effective from May 6, 2022.
Earlier on Thursday itself, private sector ICICI Bank had announced a 25 percent increase in FD interest rates, while Bandhan Bank has increased by half a percent i.e. 50 basis points. Jana Small Finance Bank has also announced an interest rate hike of 25 basis points on deposits up to Rs 2 crore.
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