Kotak Mahindra Bank customers take note: Rate cut for Savings account | Personal Finance News
Kotak Mahindra Bank has cut savings account interest rate by 50 bps. The private bank has provided details of new rates on its website.
Kotak Mahindra Bank cuts savings account interest rate by 50 bps (Pic: Depositphotos)
New Delhi: Kotak Mahindra Bank has decreased the interest rate on savings accounts with balances under Rs 5 lakh. The new rates are effective from October 17, 2024. The private lender has introduced a new bracket and reduced the rate on savings accounts for amounts less below Rs 5 lakh by 50 basis points.
Prior to the release of new rates, the bank had only two slabs: 3.5 per cent interest rate for savings accounts below Rs 50 lakh and 4 per cent rate for balances more than Rs 50 lakh. The new set up includes three slabs:
- Three per cent per annum interest rate for balances up to Rs 5 lakhs
- For balances more than Rs 5 lakhs and up to Rs 50 lakhs, the bank will now provide interest rate of 3.5 per cent
- Individuals having balances over Rs 50 lakhs in the savings account of Kotak Mahindra Bank will be eligible to get an interest rate of 4 percent.
| Nature | For balances up to Rs. 5 lakhs | For balances above Rs.5 lakhs and up to Rs.50 lakhs | For balances above Rs. 50 lakhs |
| Domestic (w.e.f. October 17, 2024) | 3% p.a. | 3.50% p.a. | 4% p.a. |
| Non Resident (NRE/NRO) (w.e.f. October 17, 2024) | 3% p.a | 3.50% p.a. | 4% p.a. |
“With effect from October 17, 2024, daily balances in Savings Account up to Rs 5 lakhs will earn 3 per cent interest per annum. Daily balances above Rs 5 lakhs and up to Rs 50 lakhs; and above Rs 50 lakhs will continue to earn 3.50 per cent and 4 per cent interest per annum respectively. These interest rates are applicable for Resident Accounts only,” the bank stated on its website.
“W.e.f Oct 17,2024, for Non Resident (NRE/ NRO), balances up to Rs. 5 lakhs will earn 3% interest p.a. and balances above Rs. 5 lakhs will continue to earn 3.50% p.a,” Kotak Mahindra Bank further mentioned.
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