Kotak Mahindra Bank has raised the interest rate on fixed deposits of less than Rs 2 crore. According to the bank’s official website, the new rates will go into effect on October 3, 2022.
Kotak Mahindra Bank FD tenures span from 7 days to 10 years, with interest rates ranging from 2.5 per cent – 6.2 per cent for normal investors and 3 per cent -6.7 per cent for elderly people.
Following the hike, the bank will provide a 6 per cent interest rate from 365 to 389 days, up from 5.75 per cent before. The bank will now provide 6.10 per cent for periods of 390 days (12 months 25 days) or less. As a result of the hike, the bank will now provide the highest interest rate, 6.2 per cent, for durations ranging from 23 months to less than three years. The bank will maintain its 6.10 per cent interest rate for maturities of three to ten years.
According to the bank website, “Interest will be paid at the rate prevailing on the date of deposit for the tenure of the deposit or the withdrawn amount remained with the bank or at the contracted rate, whichever is lower after deducting the applicable penal charge for premature withdrawal as per Terms & Conditions of the bank.“
“Interest on Fixed Deposits with duration less than 181 days would be computed as Simple Interest at maturity,” according to the Kotak Mahindra Bank website. Interest is calculated on a 365-day basis in a non-leap year and 366-day basis in a leap (calendar) year.”