Private sector lender Kotak Mahindra Bank on Thursday announced a 0.50 per cent increase in savings account interest rate for deposits of over Rs 50 lakh to 4 per cent, a day after RBI hiked the policy rate to tame inflation.
Term deposit rates have also been increased by up to 0.25 per cent, the city-headquartered lender said in a statement.
Daily balances in savings accounts above Rs 50 lakh will now earn an interest of 4 per cent per annum as against the earlier rate of 3.50 per cent, while the rate for deposits under Rs 50 lakh will be 3.50 per cent.
Consumer price inflation has been hovering at over 7 per cent, and the RBI expects the same to be at 6.7 per cent for FY23, due to which it hiked its key rate by another 0.50 per cent on Wednesday.
Kotak Mahindra Bank's Group President for Consumer Banking Shanti Ekambaram said interest rates are now on an upward trajectory and it has hiked rates for savings accounts and term deposits for various tenors for the benefit of customers.
The term deposit rate hike has been across multiple tenors. For deposits of over Rs 2 crore, the rates have been hiked by up to 0.25 per cent, it added.