Private sector bank Kotak Mahindra Bank has increased the interest rates on fixed deposits (FDs) of less than Rs 2 crore for customers by 0.85 percent (85 basis points) on December 11.
Private sector bank Kotak Mahindra Bank has increased the interest rates on fixed deposits (FDs) of less than Rs 2 crore for customers by 0.85 percent (85 basis points) on December 11. One bps is one hundredth of one percentage point. After this increase, interest rates have reached 7.80 percent. The bank has informed that the interest rate on FD for regular customers has increased by 50 bps in all tenures. The interest rate for senior citizens has been increased by 85 bps. The bank said in a press release, “FD rates for senior citizens have increased by 0.85 percent.”
The bank said that senior citizens can get returns of up to 7.80 percent for a period of 23 months to 2 years. The bank said that the increase of 0.50 percent for FDs with a tenure of three to four years will also benefit regular customers investing less than Rs 2 crore.
Rates increased from 6.25% to 7%
Apart from this, it has been said in the press release that the rates have increased to 7 percent and apart from this, after the increase of 0.75 percent, the rates on FD for tenure of four to five years have increased from 6.25 percent to 7 percent. In the Monetary Policy Committee (MPC) meeting of December 2023, IBI kept the repo rate at 6.5 percent. After increasing the rate by 250 basis points from May 2022, the MPC has kept the repo rate unchanged at 6.5 per cent in the last four monetary policies.
According to RBI data, in the current tightening cycle, the weighted average FD rate of banks increased by 233 bps and the weighted average loan rate on new loans increased by 196 bps. The increase in outstanding term deposit rates and outstanding loan rates of banks was less than 157 bps and 112 bps respectively.
