In less than a month, Kotak Mahindra Bank again raised interest rates on term deposits, as well as on recurring deposits with effect from July 26, 2022.
Prior to this, Kotak Mahindra Bank raised interest on term deposits in the first week of July, and in May before that.
Now, the interest rates on fixed deposits for one year will be 5.6 percent. The interest rate increases to 5.75 percent for 23 months, 5.9 percent for three years and above.
The rate of interest for shorter tenure deposits ranges between 2.5 percent to 5.25 percent. For instance, the term deposits for anywhere between 7-30 days will now fetch 2.5 percent, for 31-90 days, interest rate will be 3 percent.
The term deposits for 91-179 days will bring 3.5 percent return, for 180 to 363 days, the rate will be 4.75 percent. Those keeping their deposits locked in for 364 days will earn interest at the rate of 5.25 percent.
The senior citizens, as is the practice, are entitled to receive a higher interest of 50 basis points on fixed deposits of all tenure.
Interest on recurring deposits
Along with FD rates, the private bank has raised interest rates on recurring deposits (RDs) as well. The bank will now offer interest at the rate of 5.6 percent for one-year RDs, for 15 months, the rate of interest will be 5.65 percent.
For two years, the rate of interest will be 5.75 percent and for three years, it will be 5.9 percent and for five years and above also, the rate has been fixed at 5.9 percent. The rates increase by 50 basis points for the deposits made by senior citizens.
Ever since banking regulator RBI raised repo rates by 90 basis points in a span of two months, commercial lenders have been raising interest rates on term deposits as well as savings accounts one after the other.
In July itself, Kotak Mahindra and Punjab National Bank have raised their interest rates. HDFC Bank raised its FD rates in June, South Indian Bank raised in April followed by Bajaj Finance Bank.