Private sector Kotak Mahindra Bank has revised its savings account interest rates, reducing them by 50 basis points (bps). The new rates, applicable to deposits ranging from ₹5 lakh to ₹50 lakh, have been implemented from February 17, 2025.
Why Has the Bank Reduced Interest Rates?
The Reserve Bank of India (RBI) recently lowered the repo rate by 25 bps, bringing it down to 6.25%. Following this decision, several banks, including Kotak Mahindra Bank and RBL Bank, have adjusted their interest rates on savings accounts and fixed deposits.
Updated Savings Account Interest Rates
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Up to ₹5 lakh – 3% per annum
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₹5 lakh to ₹50 lakh – 3% per annum
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Above ₹50 lakh – 3.5% per annum
These revised rates apply to both domestic and non-resident account holders.
Floating Interest Rate Structure
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Up to ₹50 lakh – 3%
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₹50 lakh to ₹50 crore – 3.5%
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₹50 crore to ₹600 crore – MIBOR + 5.2 bps
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₹600 crore to ₹1,000 crore – MIBOR + 50 bps
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Above ₹1,000 crore – MIBOR + 70 bps
Updated Fixed Deposit (FD) Interest Rates
Kotak Mahindra Bank revised its FD interest rates in June 2024. Customers investing amounts below ₹3 crore can earn interest ranging from 2.75% to 7.40% depending on the tenure, which varies from 7 days to 10 years.
Senior citizens receive a higher interest rate, ranging from 3.25% to 7.90%.
Customers are advised to check with their respective bank branches for the latest details on savings and FD interest rates. Digital banking services remain accessible for all transactions.
