Private sector Kotak Mahindra Bank gave a big blow to the customers with savings accounts. The bank announced interest rate cut on savings accounts with balance less than Rs 5 lakh. According to the website of Kotak Mahindra Bank, the new interest rates are applicable from October 17, 2024. This reduction in interest rate has been done in the new bracket introduced by the bank.
Start of new bracket
Kotak Mahindra Bank has introduced a new bracket. Under this bracket, the interest rate on savings accounts for amounts less than Rs 5 lakh was reduced by 50 basis points. In this the interest rate has increased from 3.5% to 3%. Let us tell you that earlier there were only two slabs of savings accounts of the bank. In the first slab, 3.5% interest rate was applicable on amount less than Rs 50 lakh and 4% interest rate was applicable on amount more than Rs 50 lakh.
However, now the bank has now created three slabs. One of these slabs is less than Rs 5 lakh. Its interest rate is 3% per annum. At the same time, the interest rate on amounts ranging from Rs 5 lakh to Rs 50 lakh is 3.5%. After this, the interest rate on amounts above Rs 50 lakh is 4%.
No change in FD interest rate
Kotak Mahindra Bank has not revised the interest rate on fixed deposits. The bank is offering interest rates between 2.75% to 7.40% for general citizens and 3.25% to 7.90% for senior citizens. These rates are effective from June 14, 2024.
Meanwhile, Kotak Mahindra Bank has announced its plans to acquire the personal loan book of Standard Chartered Bank India. This includes the total outstanding loan amount of approximately Rs 4,100 crore (approximately $490 million). As per the guidelines set by the Reserve Bank of India, these loans come under the category of standard loans. The proposed transaction is expected to be completed by September 30, 2024.
