Good news is in store for investors relying on fixed deposits to earn returns on the money invested. Kotak Mahindra Bank, a private sector bank and lender, has prepped up the interest rates on its fixed deposits, of less than ₹2 crores, maturing within a year. The bank had previously offered a 4.9 percent interest rate to its customers on its deposits maturing in 365-389 days.
However, with the announcement regarding the change in interest rates today, the bank will now give five percent interest on investments in fixed deposits for this tenure. Barring this tenure, the bank has not changed the interest rates on all fixed deposits of less than ₹2 crores for all tenures.
The bank is now offering the following interest rates on fixed deposits worth less than ₹2 crores with tenures ranging from a week to 10 years.
| Tenures | Regular Interest Rate Every Year | Annualized Yield | Senior Citizen Interest Rate per Annum | Annualized Yield |
| 364 days | 4.50% | 4.55% | 5.00% | 5.06% |
| 365-389 days | 5.00% | 5.09% | 5.50% | 5.61% |
| 390 days | 5.10% | 5.20% | 5.60% | 5.72% |
| 391 days to less than 23 months | 5.10% | 5.20% | 5.60% | 5.72% |
| 23 months | 5.10% | 5.20% | 5.60% | 5.72% |
| 23 months 1 day to less than 2 years | 5.10% | 5.20% | 5.60% | 5.72% |
| 2 years to less than 3 years | 5.20% | 5.30% | 5.70% | 5.82% |
| 3 years and above but less than 4 years | 5.45% | 5.56% | 5.95% | 6.08% |
| 4 years and above but less than 5 years | 5.45% | 5.56% | 5.95% | 6.08% |