Kotak Mahindra Bank Interest Rate Cut on Savings Account: After the repo rate cut by the Reserve Bank of India (RBI), now Kotak Mahindra Bank has announced a cut in interest rates received on a savings account. Major private sector bank Kotak Mahindra Bank has announced a cut of 50 basis points (BPS) in the interest rates received on a saving account with daily balance up to Rs 5 lakh. It has been reduced from 3.50 percent to 3 percent. According to the official website of Kotak Mahindra Bank, the new rates have been implemented from February 17, 2025.
In the RBI Monetary Policy Committee (MPC) meeting held between February 5 and February 20, 2025, members unanimously decided to reduce their repo rate from 25 basis points (BPS) to 6.50 percent to 6.25 per cent. This deduction in the repo rate has been the first time in five years. The RBI had increased the repo rate of about 250 basis points (BPS) continuously after the Kovid-19 epidemic.
From April 1, 2016, interest on savings account will be paid on a quarterly basis. Thus, the saving bank account calculated based on the daily product will be paid every year at quarterly intervals on 30 June, 30 September, 31 December and 31 March.
How much interest will be available now?
According to the revised interest rates, from February 17, 2025, a savings account will get 3 % per year on daily balance of up to Rs 50 lakh. While 3.50 percent annual interest will be available on an amount of more than Rs 50 lakh. That is, for the balance of more than Rs 50 lakh, the interest rate of savings account has been reduced from 4 percent to 3.50 percent. These interest rates are applicable to both resident and non -resident accounts.
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Kotak Mahindra Bank issued a statement on its official website saying, “Since 17 February 2025, effective savings accounts will get 3.50% interest on daily balance of up to Rs 50 lakhs and 3.50% interest on 3% per year and more than Rs 50 lakh respectively. Interest rates are applicable to both resident and non -resident accounts (NRI/NRO). ” This decision of the bank is a major setback for the common account holders.