Following the RBI’s surprise 40 basis point (bps) hike in the repo rate to 4.4 percent, Kotak Mahindra Bank has announced an increase in deposit rates for retail customers across tenures. The new rates apply to all deposits of less than Rs. 2 crore and take effect on May 6.
According to the press release, the rate of interest on the popular 390-day (12 months and 25 days) deposit has been raised by 30 basis points to 5.5 percent, and the rate on the 23-month deposit has been raised by 35 basis points to 5.6 percent. According to the revised rates, the bank’s other deposits, such as the 364-day deposit, will pay 5.25 percent, and the 365-day – 389-day deposit will pay 5.4 percent. Senior citizens, defined as those aged 60 and up, will receive an additional 50 basis points on these rates.
With effect from May 5, ICICI Bank has also raised its deposit rates. For example, for a single deposit of Rs. 2 crore or more but less than Rs. 5 crore, the 185-day to 210-day deposit will pay 3.75 percent, while the 271-day to 289-day deposit will pay 4 percent. On January 20, interest rates on single deposits of less than Rs. 2 crore were last revised.
Source:Mint