Kotak Mahindra Bank increases interest rate on deposits

10 Feb 2023 , 09:18 AM

The latest institution to increase deposit rates in an effort to draw clients is Kotak Mahindra Bank. On February 9, the bank announced that, as of February 10, the interest rates on fixed deposits for the 15-month to two-year tenor bucket were increased by up to 25 basis points.

With this, the bank would now grant senior persons who deposit up to Rs2 crore an annual interest rate of 7.60%. For deposits between Rs2 and Rs5 crore, an interest rate of 7.25% will be offered, and for deposits up to Rs2 crore, an interest rate of 7.10%, for the range of tenors from 12 months and 25 days to two years.

‘With the RBI boosting key interest rates, we have passed on the benefit to our important clients delivering them a larger return on their investments,’ said Virat Diwanji, Group President and Head of Consumer Bank at Kotak Mahindra Bank told MoneyControl.

The Reserve Bank of India just raised the repo rate by 25 basis points to 6.50% on February 8 during its first monetary policy meeting of 2023, which is the smallest rise in the repo rate since May 2022.

Prior to February 6, Bandhan Bank, based in Kolkata, raised interest rates on fixed deposits by up to 50 basis points across all maturities.

For deposits with a tenure of 600 days or less, the bank is now offering 8.5% interest per year for elderly citizens and 8% for everyone else. Similarly, the updated rate for one-year deposits is now 7%.

The State Bank of India (SBI), HDFC Bank, and Kotak Mahindra Bank have boosted their fixed-rate deposit interest rates among the major banks. The interest rates of small finance banks (SFBs) including AU, Jana, and Equitas have also increased.

SBI raised the interest rates on fixed-term deposits by 0.50% for all tenors. Interest rates on fixed-term deposits have increased by 0.75% and 0.25%, respectively, at HDFC Bank and Kotak Mahindra Bank.

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