Kotak Mahindra Bank has announced an increase in interest rates on Fixed Deposits (FDs) of less than ₹2 crore up to 7.80% for senior citizens. Senior citizens can now get enhanced returns, with rates increased by up to 85 bps across various tenures, the lender said in a statement.
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For tenures ranging from 23 months to 2 years, senior citizens can earn up to 7.80%. The upward revision extends to tenures of 2 to 3 years, offering 7.65%.
Regular customers investing less than ₹2 crore also benefit due to the 50 basis points (bps) increase for FDs with tenures of 3 to 4 years, now providing 7.00%. Additionally, tenures of 4 to 5 years see a remarkable hike to 7.00%, up from the earlier 6.25%, Kotak Mahindra Bank said.
Virat Diwanji, Group President and Head – Consumer Bank at Kotak Mahindra Bank, stated, "Fixed deposits are considered safe and low-risk investments, particularly by senior citizens."
Here are the increased fixed deposit interest rates of Kotak Mahindra Bank:
| < ₹2 crore | Current Rates | New Rates | ||
| Tenure/Rates | Regular | Senior Citizen | Regular | Senior Citizen |
| 23 months | 7.25% | 7.75% | 7.25% | 7.80% |
| 23 months 1 day – less than 2 years | 7.25% | 7.75% | 7.25% | 7.80% |
| 2 years and above - less than 3 years | 7.10% | 7.60% | 7.10% | 7.65% |
| 3 years and above – less than 4years | 6.50 | 7.00% | 7.00% | 7.60% |
| 4 years and above – less than 5 years | 6.25% | 6.75% | 7.00% | 7.60% |
(Source: Kotak Mahindra Bank)
The development comes after RBI Governor Shaktikanta Das-led monetary policy committee (MPC) on Friday, December 8, 2023, kept the repo rate unchanged for the fifth time at 6.5%.
However, the central bank earlier implemented six consecutive rate hikes, totalling 250 basis points, until the pause in April.
Though repo rates have risen, the subsequent adjustment in bank deposit rates has been gradual, as indicated by RBI governor Shaktikanta Das in October's policy review. Banks initially lagged in increasing their FD rates following the RBI's policy actions, leading to a subsequent catch-up phase.
(Edited by : Anshul)
First Published: Dec 12, 2023 10:39 AM IST
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