Kotak Mahindra Bank increases FD rates by up to 25 bps

The new rates will be effective February 10

Kotak Mahindra Bank has become the latest lender to join the list of banks hiking the deposit rates to attract customers. The bank, on February 9, said it has increased the interest rates on fixed deposits by up to 25 bps for the 15 months to two years tenor bucket, effective February 10.

With this, the bank will now offer 7.60 percent interest per annum for senior citizens for deposit amounts of up to Rs 2 crore. An interest rate of 7.25 percent will be offered for deposit amounts between Rs 2 to 5 crore and 7.10 percent for deposit amounts up to Rs 2 crore in the 12 months 25 days to two years tenor bucket.

Virat Diwanji, Group President and Head – Consumer Bank, Kotak Mahindra Bank said, "With the RBI increasing key interest rates, we have passed on the benefit to our valuable customers offering them a higher return on their savings."

Recently, in its first monetary policy meeting of 2023, the Reserve Bank of India, increased the repo rate by 25 bps to 6.50 percent on February 8, which is the lowest repo rate hike since May 2022.

Banks that have increased FD rates so far

Earlier, Kolkata-based Bandhan Bank increased the interest rates on fixed deposits by up to 50 bps across different maturities effective February 6.

The bank is now offering 8.5 percent interest p.a. for senior citizens and 8 percent for others for deposits with a tenure of 600 days. Similarly, for one-year deposits, the revised rate now stands at 7 percent.

Among major banks, the State Bank of India (SBI), HDFC Bank, and Kotak Mahindra Bank have raised their FD interest rates. Small finance banks (SFBs) like AU, Jana and Equitas hiked their interest rates, too.

SBI increased the interest rates on FDs by 0.50 percent across various tenors. HDFC Bank and Kotak Mahindra Bank hiked the interest rates on FDs by 0.75 percent and 0.25 percent, respectively.