Kotak Mahindra Bank Cuts Interest Rates On Large Savings, Fixed Deposits

Kotak Mahindra Bank has deducted the interest rate applicable on savings accounts with daily balances above Rs 1 lakh to 5 percent from 6 percent with effect from 1 April.

The private bank's website said, "w.e.f. April 1, 2020, interest rate on daily balances in Savings Account above Rs. 1 Lakh stands revised at 5% p.a. Daily balances up to Rs. 1 Lakh will continue to earn 4% interest p.a. The interest rates mentioned are applicable for Resident Accounts only."

The bank has also revised its interest rates on large term deposits of Rs 2 crore and above with effect from 30 March. Rates offered on these deposits range from 2 to 5.75 percent on terms ranging from 7 days to 7 years.

The revision comes after the Reserve Bank of India (RBI) sharply cut its repo rate by 75 basis points to 4.4 percent to support the country during the lockdown to fight the COVID-19 pandemic that has brought most economic activities to a standstill.

Previously, the bank had revised interest rates on FDs less than Rs 2 crore with effect from 23 March.