Kotak Mahindra Bank Interest Rate Cut: The country’s leading private sector bank Kotak Mahindra Bank has reduced the interest rate on savings accounts with daily balance of Rs 5 lakh to Rs 50 lakh. The bank has announced a cut in interest rates on savings accounts by 50 basis points (bps). The new interest rates have come into effect from February 17, 2025..
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 per cent to 3 per cent. According to the official website of Kotak Mahindra Bank, the new rates have come into effect from February 17, 2025.
In the meeting of the Monetary Policy Committee (MPC) of RBI held between February 5 and February 7, 2025, the members unanimously decided to reduce their repo rate by 25 basis points (bps) from 6.50 percent to 6.25 percent. This cut in repo rate is the first time in almost five years. RBI had continuously increased the repo rate by about 250 basis points (bps) after the Covid-19 pandemic.
Interest on savings account will be paid on quarterly basis from April 1, 2016. Thus, the savings bank account interest calculated on the basis of daily product will be paid at quarterly intervals on June 30, September 30, December 31 and March 31 of every year.
How much interest will be available now?
According to the revised interest rates, from February 17, 2025, interest will be given at the rate of 3 percent per annum on daily balance up to Rs 50 lakh in savings account. Whereas 3.50 percent annual interest will be given on the amount more than Rs 50 lakh. That is, the interest rate of savings account for balance more than Rs 50 lakh has been reduced from 4 percent to 3.50 percent. 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.
