Kotak Mahindra Bank, a private sector lender, has revised its interest rates on fixed deposits of less than Rs 2 crores (approx. $241,100), effective from Wednesday. The bank now offers a maximum return of 7.75% for senior citizens and 7.25% for the general public over a 23-month period, according to the bank's official website.
The bank's revised interest rates vary depending on factors such as the maturity period, deposit amount, and depositor type. For instance, the bank now pays an interest rate of 2.75% on fixed deposit terms of 7 to 14 days, while it offers an interest rate of 3.00% on fixed deposit terms of 15 to 30 days. Deposits made for 31 and 45 days will earn an interest rate of 3.25%, whereas those between 46 and 90 days will fetch a rate of 3.50%.
For deposits maturing in 91 to 120 days, the new interest rate is set at 4.00%, while those maturing in 121 to 179 days will now earn an interest rate of 4.25%. On a fixed deposit tenure of 180 days, the bank is offering an interest rate of 7.00%, and for those maturing in 181 days to 363 days, the interest rate is now set at 6.00%.
Kotak Mahindra Bank is also offering an interest rate of 6.50% on a deposit tenor of 364 days and a slightly higher rate of 7.10% for tenors ranging from 365 to 389 days. Deposits maturing in less than two years but more than 391 days will now fetch an interest rate of 7.20%.
The bank has increased its interest rate by 25 basis points on tenure of 23 months for general citizens, from 7.00% to 7.25%. For deposits with terms of two years to less than three years, the revised interest rates are now at 7.00%, and for deposits with terms of three years or more but not more than four years, the rates are set at 6.50%.
Deposits that mature in four years or more but less than five years will earn an interest rate of 6.25%, while those maturing in five years and above up to and inclusive of ten years will earn an interest rate of 6.20%.
Kotak Mahindra Bank also offers a recurring deposit interest rate varying between 6% to 7.20% for tenure between six months to ten years for regular citizens and 6.50% to 7.70% for senior citizens.
Customers may choose to prematurely withdraw money from fixed deposit accounts subject to penalty rates of up to 1%. In case of premature closure of the deposit within a month, no interest shall be paid and only the principal amount will be returned. The interest on premature withdrawal of the deposit will be paid at the rate prevailing on the date of deposit for the tenure the deposit remained with the bank or at the contracted rate, whichever is lower post deducting penal charge of 0.5%.
A fixed deposit at Kotak can be started for as little as Rs. 5,000, with no upper limit on the deposit amount. Rates are an additional 50 basis points for senior citizens than for the general public under the age of 60.
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