New Delhi: Kotak Mahindra Bank, a leading private lender in India, has recently revised its interest rates for savings accounts. The bank has moved from its previous two-tier structure to a new three-tier slab system, with the changes taking effect from October 17, 2024. This update primarily affects account holders with balances of up to Rs 5 lakh, as the interest rate for this category has been reduced.
Under the new structure, savings accounts with balances up to Rs 5 lakh will now earn a 3% interest rate, a decrease from the previous 3.5%. For balances ranging between Rs 5 lakh and Rs 50 lakh, the bank will offer a 3.5% interest rate. For those holding balances above Rs 50 lakh, the interest rate remains at 4% per annum, providing better returns for higher-value accounts.
Previously, Kotak Mahindra Bank had only two slabs: 3.5% for accounts under Rs 50 lakh and 4% for those above Rs 50 lakh. The new structure introduces a middle tier, potentially impacting customers with smaller balances who now face a reduction in their earnings due to the lower interest rate of 3%.
For Non-Resident External (NRE) and Non-Resident Ordinary (NRO) account holders, the interest rates remain unchanged at 3.5% per annum for balances over Rs 50 lakh.
While the savings account rates have been revised, the bank’s fixed deposit (FD) interest rates remain the same, ranging from 2.75% to 7.40% for general customers and from 3.25% to 7.90% for senior citizens, effective since June 14, 2024.
