Kotak Mahindra Bank has cut the annual interest rate on savings accounts with daily balances above Rs 1 lakh to 5 percent with effect from April 1.
For savings accounts with daily balance of up to Rs 1 lakh, the interest rate will remain at 4 percent.
Most of the lender's savings accounts with balance above Rs 1 lakh and up to Rs 10 lakh currently have an annual interest rate of 6 percent, according to the bank's website.
The revised interest rate is applicable on Resident Accounts only, the bank said.
The country's largest lender, State Bank of India (SBI), had also earlier this month reduced interest rate on savings bank accounts to 3 percent for all customers. Before the cut, it used to pay 3.25 percent on a balance of up to Rs 1 lakh and 3 percent for balances above Rs 1 lakh.The Reserve Bank of India (RBI) had on March 27 cut the repo rate by 75 basis points to 4.4 percent. This means that other banks, too, might soon revise interest rates on deposits and lending rates.