Private lender Kotak Mahindra Bank has revised its rates for fixed deposits and recurring deposits. According to the new rates, the general public are now being promised a higher 5.25 per cent interest rate on deposits maturing between 5 and 10 years. For senior citizens, the interest rate is now 5.75 per cent. The new rates have kicked in from September 30 for fixed and recurring deposits below Rs 2 crore.
Like earlier, Kotak Mahindra Bank gives the customers an option of premature withdrawal with charges. The new charges are applicable on shortest-term deposits (7-14 days) as well. For fixed deposits under Rs 2 crore, the general public will get 2.5 per cent interest for deposits maturing in 7-14 days and 15-31 days. This will be 3 per cent for senior citizens.
Similarly, for fixed deposits maturing in 31-45 days and 46-90 days, Kotak Mahindra Bank account holders will get a return of 2.75 per cent on their sum. The interest rate for senior citizens has been kept 0.50 per cent higher than their young peers in every category.
As customers keep their money for a longer period, the return will also increase. The private sector bank is promising 3 per cent and 3.20 per cent on fixed deposits maturing in 91-120 days and 121-179 days, respectively.
There is a significant jump of 1 per cent if Kotak Mahindra Bank customers keep their money in fixed deposits for 180 days. They will get 4.2 per cent for FDs maturing in 180 days. If customers keep their money in a FD for around a year (364 days), they will get a return of 4.4 per cent.
Customers will get 5 per cent return on FDs maturing between two and three years. For three years and less than five years, the yield will be 5.2 per cent.
For recurring deposits, Kotak Mahindra Bank customers will get an interest rate of 4.25 per cent for maturity in six months. For nine months, it is 4.4 per cent, and 4.5 per cent for recurring deposits maturing in 12 months. The changed interest rate is the same (4.75 per cent) for recurring deposits for a time period of 15 months, 18 months and 21 months.
It is 5 per cent for 24 months, 27 months, 30 months and 33 months. For a 3-5 years period, the new interest rate is 5.2 per cent. In the final bracket of 5-10 years, the interest rate is 5.25 per cent.
Like fixed deposits, the interest rate for senior citizens in recurring deposits is also kept at 0.50 per cent higher than what it is for the general public.