The bank has increased the interest rates on fixed deposits by 10 to 15 basis points i.e. from 0.10 percent to 0.15 percent. The new interest rates of the bank will be effective from June 10, 2022.
New Delhi. After the increase in the repo rate again by the Reserve Bank of India (RBI), now the banks are also increasing the interest rates. In this episode, Kotak Mahindra Bank of the private sector has announced an increase in interest rates on savings accounts and fixed deposits (FD) on Thursday.
New interest rates for savings account will be applicable on June 13
The bank has increased the interest rate on savings accounts with deposits above Rs 50 lakh from 3.5 per cent to 4 per cent. However, this new rate of interest will be applicable from June 13, 2022. Investors investing in traditional instruments will benefit greatly from the increase in the interest rates of banks. Kotak Mahindra Bank has not changed the interest rates on savings accounts with deposits of less than Rs 50 lakh. It is stable at the current 3.5 per cent.
New interest rates of FD will be applicable on June 10
The bank has increased the interest rates on fixed deposits by 10 to 15 basis points i.e. from 0.10 percent to 0.15 percent. The new interest rates of the bank will be effective from June 10, 2022. This bank has increased the interest rates on fixed deposits of less than Rs 2 crore for tenor more than 1 year. The interest rate on FDs maturing in 365 days to 389 days has been increased from 5.40 percent to 5.50 percent. Whereas, the interest rate on term deposits with maturity of 390 days has been increased from 5.5 per cent to 5.65 per cent.
No change in 1 year period
Kotak Mahindra Bank has increased the interest rate on fixed deposits with tenures ranging from 23 months to less than 3 years from the current 5.6 percent to 5.75 percent. At the same time, deposits with a tenor of more than 3 years up to 10 years will now get 5.9 percent interest instead of 5.75 percent. The interest rates on Fixed Deposits with tenure of 1 year remain unchanged at 5.25. Similarly, in the period of 180 days to 363 days, the current interest rate will be only 4.75 percent. Senior citizens will continue to get 0.5 percent more interest as before.
Interest rates up
According to media report, Shanti Ekambaram, Group President (Consumer Banking), Kotak Mahindra Bank said, “Interest rates are now on an upward trend. We strive to empower products and services that meet the needs of our customers. Under this principle, we have increased the interest rate on the savings account to 4 per cent per annum. Along with this, we have also increased the FD rates of various tenors, so that our customers get more interest.
Repo rate increased twice within 36 days
Significantly, on June 8, 2022, RBI Governor Shaktikanta Das announced an increase of 50 basis points in the repo rate, increasing it from 4.40 percent to 4.90 percent. Earlier, on May 4, 2022, the central bank had increased the repo rate by 40 basis points from 4.00 percent to 4.40 percent.
