Kotak Mahindra Bank Interest Rate Cut on savings account: After the cut in repo rate by the Reserve Bank of India (RBI), now Kotak Mahindra Bank has announced a cut in interest rates on savings accounts.
Leading private sector bank Kotak Mahindra Bank has announced a cut of 50 basis points (bps) in interest rates on savings accounts with daily balance up to Rs 5 lakh. It has been reduced from 3.50 percent to 3 percent. According to the official website of Kotak Mahindra Bank, the new rates have come into effect from February 17, 2025.
In the RBI’s Monetary Policy Committee (MPC) meeting held between February 5 and February 7, 2025, the members unanimously decided to reduce its repo rate by 25 basis points (bps) from 6.50 percent to 6.25 percent. This is the first reduction in the repo rate in almost five years. RBI had continuously increased the repo rate by about 250 basis points (bps) after the Covid-19 pandemic.
From April 1, 2016, interest on savings accounts will be paid on a quarterly basis. Thus, interest on savings bank account calculated on daily product basis will be paid at quarterly intervals on June 30, September 30, December 31 and March 31 of every year.
How much interest will I get now?
According to the revised interest rates, from February 17, 2025, interest will be given at the rate of 3 percent per annum on a daily balance of up to Rs 50 lakh in a savings account. Whereas 3.50 percent annual interest will be given on an amount above Rs 50 lakh. That is, the interest rate of savings account has been reduced from 4 percent to 3.50 percent for a balance of more than Rs 50 lakh. These interest rates are applicable for both resident and non-resident accounts.
Kotak Mahindra Bank issued a statement on its official website saying, “Effective from February 17, 2025, savings accounts will get 3% interest per annum on daily balance up to Rs 50 lakh and 3.50 percent interest on more than Rs 50 lakh respectively. These interest rates are applicable to both resident and non-resident accounts (NRI/NRO).” This decision of the bank is a big blow for common account holders.
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