Kotak Mahindra Bank, a private lender, has changed its fixed-term and recurring deposit rates. According to the new rates, the general public now receives a higher interest rate of 5.25 percent for deposits with a term of 5 to 10 years. The interest rate for seniors is now 5.75 percent. For fixed-term deposits and recurring deposits under Rs.2 billion, the changed rates came into effect on September 30th.
As before, customers of Kotak Mahindra Bank have the option of making a fee-based advance withdrawal. The new fees apply to both short-term (7-14 days) and long-term (7-14 days) deposits. The general public would receive 2.5 percent interest on time deposits below Rs 2 crore due in 7-14 days and 15-31 days. For older people the rate is 3%.
Kotak Mahindra Bank account holders also receive 2.75 percent interest on time deposits with a maturity of 31-45 days and 46-90 days. In each category, older people’s interest rates were held 0.50 percent higher than their younger counterparts.
Customers get a higher return if they hold their money over a longer period of time. Time deposits with a term of 91-120 days or 121-179 days will bring in 3% and 3.20%, respectively, according to the private bank.
If customers of Kotak Mahindra Bank hold their money in time deposits for 180 days, their interest rate increases by 1%. For FDs with a term of 180 days, they receive 4.2 percent. Customers who invest their money in an FD for a year (364 days) receive a return of 4.4 percent.
Customers receive a 5% return on FDs with a term of two to three years. The return is 5.2 percent for three years and less than five years.
Kotak Mahindra Bank customers receive an interest rate of 4.25 percent on recurring deposits with a term of six months. It is 4.4 percent for nine months and 4.5 percent for recurring deposits with a term of one year. For recurring deposits with a term of 15 months, 18 months or 21 months, the interest rate has not changed (4.75%).
For 24 months, 27 months, 30 months and 33 months the rate is 5%. The new interest rate is 5.2 percent for a period of three to five years. The interest rate in the last category of 5-10 years is 5.25 percent.
The interest rate on recurring deposits for the elderly is 0.50 percent higher than for the general public, similar to fixed deposits.