Kotak Mahindra Bank RD Interest Rates

News About Kotak Mahindra Bank Recurring Deposit Interest Rates

• Kotak Mahindra Bank supports slash in savings rate

  As per reports, Kotak Mahindra has initiated a move to slash its small savings rate, which currently stands at 7.7%. While speaking to the media, the executive chairman of Kotak Mahindra, Uday Kotak, said the move was made amidst the continuous battle with the postal system for deposits with disparity in rates.

  He further said the small savings rates are higher than what the government securities yield. In order to raise deposits, there should be some sort of balance in interest rates across banks, he further added. He also suggested that the small savings rates should be linked to RBI’s (Reserve Bank of India) benchmark rate so that all banks are able to roll out attractive rate of interest on small savings. Only interest rates of special schemes like Sukanya Samriddhi Yojana need to be regulated, he suggested. Currently, RBI repo rate stands at 6%.

  However, it is being speculated that any cut in small savings rate can cause a furore among the public as the scheme is one of the few risk-free investment channels. However, the bank officials argue that the proposed cut in small savings rate would slash the government’s interest costs.

  In recent years, there has been a noticeable slump in bank deposits. However, eminent economist, Pronab Sen, says that small savings is not the root cause of the slump in bank deposits. According to Pronab, the slump is more likely due to the sharp increase in mutual fund investments. He also expressed shock over small savings schemes, which are long-term deposits, are being proposed to be linked to RBI repo rate.

  

  06 June 2019

• Following SBI, Kotak Mahindra Bank Reduced Their Interest Rates On Deposits Between Rs.1 Crore and Rs.5 Crore

  Kotak Mahindra Bank is one of the leading private banks in India. Recently, after State Bank of India reduced their interest rates on their savings account deposits, many banks followed the trend. Kotak Mahindra Bank as well has dropped their interest rates on savings account above Rs. 1 lakh and up to Rs.1 crore.

  For savings account deposits above Rs. 1 crore and up to Rs.5 crores, the bank now offers rate of interest of 5.5% p.a, which was 6% previously. However, the interest rates for deposits below Rs.1 lakh and above Rs.5 crore hasn't changed and still stands at 5% p.a and 5.5% p.a, respectively. Please contact your bank for revised interest rates on savings and recurring deposits.

  

  18 August 2017

• Kotak Mahindra Bank Will Not Reduce Their Rates oN Deposits

  Top executives at Kotak Mahindra Bank stated that they do not wish to cut their interest rate on their savings bank deposits anytime in the near future as it has helped them immensely to grow their base twice the industry rate in the past.

  Unlike State Bank of India who offer only 3.5% p.a on savings bank account, Kotak Mahindra Bank offers 6% p.a., which is very high than its peer banks.

  President for consumer banking at Kotak Mahindra Bank,

  Shanti Ekambaram, stated that by June 2017, when the quarter ended, the bank saw 44% growth in their savings account balance which was two times more than the industry average.

  

  14 August 2017

• Rate of 1 year Fixed Deposit Reduced By Kotak Mahindra Bank to 7%

  Kotak Mahindra Bank, one of the country’s leading private-sector lender has brought down the interest rates on fixed-deposits of one year by 25 basic points to 7% - visibly lower than 7.05% offered by the State Bank of India on the same. This new rate will come into effect on Monday. This move by Kotak Mahindra Bank comes close on the heels of a similar lowering of interest rates by its larger competitor HDFC. Earlier, the State Bank of India had rolled back interest rates by 10bps – starting on October 24 – bringing it to a six-year low. HDFC had followed suit - cutting interest rates by 25 bps – starting November 8. Kotak has also slashed interest rates on two and three year deposits by 50bps each - bringing it down to 6.75%. Meanwhile, SBI’s rates for the same are at 7% and 6.5% respectively – and HDFC offers the same at the rate of 7% for both terms. Meanwhile, private sector competitors ICICI Bank and Axis Bank continue to offer interest rates of one, two and three year deposits at 7.25%.

  With the recent demonetization move undertaken by the government and the resulting stoppage of 500 and 1000 rupee notes, the average quantum of deposits in banks have witnessed a significant rise.

  

  16 November 2016

• Kotak Mahindra Releases Revised Recurring Deposit Rates

  Kotak Mahindra bank has revised the interest rates with effect from 25th August 2016. The new rates offer senior citizens an additional 0.50% interest p.a. across all tenures. The general interest rates offered for tenures ranging from 12 months to 33 months is 7.50% p.a. and senior citizens avail an interest of 8% p.a. for the same tenures. Tenures of three years and above but less than five years attract a general interest of 7.25% p.a. and senior citizen interest of 7.75% p.a. For tenures ranging between 5 to 10 years the interest rates available are 7% p.a. for general and 7.50% p.a. for senior citizens.

  

  25 August 2016