New Delhi: Kotak Mahindra Bank has decreased the interest rate on savings accounts with balances under Rs 5 lakh. The new rates are effective from October 17, 2024. The private lender has introduced a new bracket and reduced the rate on savings accounts for amounts less below Rs 5 lakh by 50 basis points.
Prior to the release of new rates, the bank had only two slabs: 3.5 per cent interest rate for savings accounts below Rs 50 lakh and 4 per cent rate for balances more than Rs 50 lakh. The new set up includes three slabs:
- Three per cent per annum interest rate for balances up to Rs 5 lakhs
- For balances more than Rs 5 lakhs and up to Rs 50 lakhs, the bank will now provide interest rate of 3.5 per cent
- Individuals having balances over Rs 50 lakhs in the savings account of Kotak Mahindra Bank will be eligible to get an interest rate of 4 percent.
| Nature | For balances up to Rs. 5 lakhs | For balances above Rs.5 lakhs and up to Rs.50 lakhs | For balances above Rs. 50 lakhs |
| Domestic (w.e.f. October 17, 2024) | 3% p.a. | 3.50% p.a. | 4% p.a. |
| Non Resident (NRE/NRO) (w.e.f. October 17, 2024) | 3% p.a | 3.50% p.a. | 4% p.a. |
“With effect from October 17, 2024, daily balances in Savings Account up to Rs 5 lakhs will earn 3 per cent interest per annum. Daily balances above Rs 5 lakhs and up to Rs 50 lakhs; and above Rs 50 lakhs will continue to earn 3.50 per cent and 4 per cent interest per annum respectively. These interest rates are applicable for Resident Accounts only,” the bank stated on its website.
“W.e.f Oct 17,2024, for Non Resident (NRE/ NRO), balances up to Rs. 5 lakhs will earn 3% interest p.a. and balances above Rs. 5 lakhs will continue to earn 3.50% p.a,” Kotak Mahindra Bank further mentioned.
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