Private lender Kotak Mahindra Bank on Thursday said it has increased fixed deposit interest rates across select amount and tenor buckets by up to 25bps.
Kotak Mahindra Bank is giving interest rates of 6 percent and 6.25 percent on fixed deposits of less than Rs 2 crore maturing in 180 days to 363 days and those maturing in 364 days, respectively.
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On a deposit tenor of 365 days to 389 days and 12 months 25 days to < 2 years, the bank is giving an interest rate of 6.90 percent and 7.10 percent, respectively.
Additionally, for 12 months 25 days to 2 years tenor bucket, senior citizens are now offered a rate of 7.60 percent for deposit amounts of up to Rs 2 crore.
The lender is giving interest rates of 6.50 percent and 6.75 percent on fixed deposits of more than Rs 2 crore maturing in 180 days to 270 days and those maturing in 280 days to 364 days.
On a deposit tenor of 365 days to < 15 months and 15 months to < 2 years, the bank is giving an interest rate of 7.20 percent and 7.25 percent.
The revised rates will be effective February 10, 2023, the bank said in a press release.
Virat Diwanji, group president and head of the consumer bank, Kotak Mahindra Bank said, “With the RBI increasing key interest rates, we have passed on the benefit to our valuable customers offering them a higher return on their savings.”
This comes after the Reserve Bank of India (RBI) expectedly hiked borrowing costs by 25 basis points while keeping the door open for more hikes as core inflation remained high. The move to raise the rate will make loans — including housing and auto — and corporate credit expensive.
The RBI’s six-member Monetary Policy Committee voted 4-2 to raise the benchmark repurchase or repo rate to 6.50 percent and retain its stance of withdrawing accommodation, which was adopted early last year.
This is the sixth straight increase in interest rates since May last year, and the cumulative hike now totals 250 bps. The RBI raised interest rates by 35 bps in December 2022. Rates were hiked by 40 bps in May and 50 basis points each in June, August, and September.
