Kotak Mahindra Bank Hikes FD Rates By 5 Bps On 2-3 Years Tenure: Details Inside

Kotak Mahindra Bank joined SBI, Bank of Baroda, IDBI Bank, PNB, and Axis Bank in raising interest rates on fixed deposits under Rs 2 Cr. This comes after the Reserve Bank of India's Monetary Policy Committee (MPC) maintained the repo rate at 6.5% for the fifth time on December 8. On January 4, 2024, Kotak Mahindra Bank increased interest rates by 5 basis points for a two- to three-year term.

Kotak Mahindra Bank FD Rates

The interest rate on deposits maturing in 7-14 days is 2.75%, whereas Kotak Mahindra Bank offers a 3.00% interest rate on deposits maturing in 15-30 days. The interest rates that Kotak Mahindra Bank now offers are 3.25% for durations between 31 and 45 days and 3.50% for terms between 46 and 90 days. Deposits that mature in 91-120 days will still be eligible for 4.00% interest, while those that mature in 121-179 days will still be eligible for 4.25% interest.

The bank is paying 7.00% interest on deposits that mature in 180 days, and Kotak Mahindra Bank is offering 6.00% interest on deposits maturing in 181 days to 363 days. The interest rate that Kotak Mahindra Bank is offering is 6.50% for a 364-day deposit tenure and 7.10% for a 365-day to 389-day deposit duration. The interest rate on deposits maturing in 390 days (12 months and 24 days) will remain at 7.15%, while the interest rate on deposits maturing in 391 days - less than 23 months will remain at 7.20%.

The bank will continue to offer an interest rate of 7.25% on deposits maturing in 23 months to less than 2 years, and on deposits maturing in 2 years to less than 3 years. Kotak Mahindra Bank raised interest rates from 7.10% to 7.15%, a 5 basis point hike. Deposits that mature in three years or more but less than five years will still have an interest rate of 7.00%, while deposits that mature in five years and above, including ten years, will still have an interest rate of 6.20%.

Fixed Deposits Interest Rates for Domestic/ NRO / NRE effective from 4th January 2024. (Rates are subject to change from time to time)
Maturity Periods - Premature Withdrawal Allowed	Regular		Senior Citizen
	Less than Rs.2 Crore	Annualised Yield	Less than Rs.2 Crore	Annualised Yield
7 - 14 Days	2.75%	2.75%	3.25%	3.25%
15 - 30 Days	3.00%	3.00%	3.50%	3.50%
31 - 45 Days	3.25%	3.25%	3.75%	3.75%
46 - 90 Days	3.50%	3.50%	4.00%	4.00%
91 - 120 Days	4.00%	4.00%	4.50%	4.50%
121 - 179 days	4.25%	4.25%	4.75%	4.75%
180 Days	7.00%	7.00%	7.50%	7.50%
181 Days to 269 Days	6.00%	6.09%	6.50%	6.61%
270 Days	6.00%	6.09%	6.50%	6.61%
271 Days to 363 Days	6.00%	6.09%	6.50%	6.61%
364 Days	6.50%	6.61%	7.00%	7.12%
365 Days to 389 Days	7.10%	7.29%	7.60%	7.82%
390 Days (12 months 24 days)	7.15%	7.34%	7.65%	7.87%
391 Days - Less than 23 Months	7.20%	7.40%	7.70%	7.93%
23 Months	7.25%	7.45%	7.80%	8.03%
23 months 1 Day- less than 2 years	7.25%	7.45%	7.80%	8.03%
2 years- less than 3 years	7.15%	7.34%	7.65%	7.87%
3 years and above but less than 4 years	7.00%	7.19%	7.60%	7.82%
4 years and above but less than 5 years	7.00%	7.19%	7.60%	7.82%
5 years and above upto and inclusive of 10 years	6.20%	6.35%	6.70%	6.87%
Source: Bank Website

The appointment of Mr. C S Rajan, an Independent Director of the Bank, as the Part-Time Chairman has been recently authorised by the Reserve Bank of India (RBI) and will take effect on January 1, 2024. The position is valid for a duration of two years. After Mr. Prakash Apte, the current part-time chairman retires on December 31, 2023, Mr. Rajan has been appointed as the Bank's Board's next part-time chairman. As of 30 September 2023, Kotak Mahindra Bank Ltd has a national footprint of 1,850 branches and 3,170 ATMs, and branches in GIFT City and DIFC (Dubai).