Kotak Mahindra Bank and Federal Bank have increased their savings account interest rates after RBI’s repo rate hike announcement.
Bank Savings Account Rate Hike: The Reserve Bank of India, or RBI, has again hiked its repo rate by 50 basis points during its bi monthly Monetary Policy Committee meet held last week. The RBI said that it was withdrawing from its accommodative stance to tackle rising inflation as the GDP prediction of India is being revised by several agencies amid the current situation. As a result of two back to back rate hikes in a month by the RBI, several banks are hiking interest rates for loan EMIs, fixed deposits as well as savings accounts. Kotak Mahindra Bank and Federal Bank have increased their savings account interest rates after RBI’s announcement.
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Kotak Mahindra Bank Savings Account Interest Rate Hike
“Kotak Mahindra Bank Limited (“KMBL”/“Kotak”) today announced a rise in savings account interest rate as well as fixed deposit interest rates across various tenors,” read a press release from the Kotak Mahindra Bank on June 9, 2022. The increase in savings account interest rate will come into effect on June 13, 2022, it said. This means the latest Kotak Mahindra Bank savings account interest rates will come into effect from today.
Daily balances in savings account above Rs. 50 lakh will now earn a 50 basis points higher interest rate of 4 per cent per annum, The lender said in its press release. This is a hike of 50 basis points or 0.5 per cent from the earlier rate of 3.5 per cent per annum. Here are the Savings Account Interest Rates of Kotak Mahindra Bank:
– For savings account deposits up to Rs 50 lakh: 3.5 per cent per annum
– For saving account deposits above Rs 50 lakh: 4.00 per cent per annum
Not only savings account, Kotak Mahindra Bank has also hiked interest rates on fixed deposits. Check them out here.
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Federal Bank Savings Account Interest Rate Hike
Another private sector lender Federal Bank has also increased interest rates on savings account as a result of the RBI repo rate hike. “As the interest rates are linked to Repo rates, the interest rates will change as and when the Repo Rate gets revised by RBI on a T+1 basis,” said the Federal Bank on its website. This has come into effect from June 9.
As per the Federal Bank website, for savings account deposits of less than Rs 5 crore, interest rate is 2.15 per cent less than the RBI’s current repo rate — which means it is 2.75 per cent. For savings account balances above Rs 5 crore, the interest rate is 2.15 per cent below the RBI’s repo rate for amounts up to and including Rs 1 lakh, and 0.90 per cent below the RBI’s repo rate for amounts above Rs 1 lakh.
“The rates as mentioned above will be calculated on the daily End of the Day balances maintained in Savings Bank accounts (Resident/NRE/ONR) and the same will be credited to respective accounts on a quarterly basis,” the bank has said on its website.
