Kotak Mahindra Bank, a private lender, has altered its fixed deposit and recurring deposit rates. The general public will now get a higher 5.25 percent interest rate on deposits maturing between 5 and 10 years under the new rates. The interest rate for senior citizens is now 5.75 percent. For fixed and recurring deposits under Rs 2 crore, the revised rates took effect on September 30.
Customers of Kotak Mahindra Bank have the option of making an early withdrawal with fees, as they did previously. The new fees apply to both short-term (7-14 days) and long-term (7-14 days) deposits. The general public would receive 2.5 percent interest on fixed deposits under Rs 2 crore that mature in 7-14 days and 15-31 days. For older persons, the rate will be 3%.
Similarly, Kotak Mahindra Bank account holders will receive a 2.75 percent interest on fixed deposits maturing in 31-45 days and 46-90 days. In every category, senior folks’ interest rates have been kept 0.50 percent higher than their younger counterparts.
Customers will receive a higher return if they hold their money for a longer period of time. Fixed deposits maturing in 91-120 days and 121-179 days, respectively, will earn 3% and 3.20 percent, according to the private sector bank.
If customers of Kotak Mahindra Bank hold their money in fixed deposits for 180 days, their interest rate increases by 1%. For FDs maturing in 180 days, they will receive 4.2 percent. Customers who put their money in an FD for a year (364 days) will receive a 4.4 percent return.
Customers will receive a 5% return on FDs with a maturity of two to three years. The yield will be 5.2 percent for three years and less than five years.
Customers of Kotak Mahindra Bank will receive a 4.25 percent interest rate on recurring deposits with a six-month term. It is 4.4 percent for nine months and 4.5 percent for recurrent deposits maturing in a year. For recurring deposits with a term of 15 months, 18 months, or 21 months, the interest rate has not changed (4.75%).
For 24 months, 27 months, 30 months, and 33 months, the rate is 5%. The new interest rate is 5.2 percent for a period of three to five years. The interest rate in the final category of 5-10 years is 5.25 percent.
The interest rate on recurring deposits for elderly persons is kept at 0.50 percent greater than it is for the general public, much like fixed deposits.