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New Delhi: One of the private lenders in India, Kotak Mahindra Bank has reduced the interest rate on savings accounts with balances of up to Rs 5 lakh. The new rates came into effect on October 17, 2024. According to the bank’s official website, the private lender has introduced a new three-tier structure for Savings accounts.
Kotak Mahindra Bank Latest Savings Account Interest Rates
The bank will give 3 per cent interest rate on savings account up to Rs 5 lakh. If the amount is between Rs 5 lakh and Rs 50 lakh, the rate will be 3.5 per cent. If the amount is above Rs 50 lakh, the return you will get is 4 per cent per annum.
Kotak Mahindra Bank: What Was Previous Interest Rate Slabs?
Previously, the bank had only two slabs – 3.5 per cent for accounts with balances under Rs 50 lakh and 4 per cent for those above Rs 50 lakh.
What Does This Mean For Account Holders?
The revision by Kotak Mahindra Bank means that the interest rate for balances under Rs 5 lakh has dropped from 3.5 per cent to 3 per cent, a reduction of 50 basis points. The new interest rate structure for savings accounts could affect customers with lower balances by offering reduced returns on their savings. However, those with larger savings balances continue to enjoy higher rates.
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Current Rates For NRE And NRO
For Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts, the interest rate remains 3.5 per cent per annum for balances above Rs 50 lakh.
Kotak Mahindra Bank Latest FD Rates
While savings account rates have been revised, fixed deposit (FD) rates remain the same. Kotak Mahindra Bank offers FD interest rates between 2.75 per cent to 7.40 per cent for general citizens and 3.25 per cent to 7.90 per cent for senior citizens. These FD rates have been effective since June 14, 2024.
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