Home / Money / Personal Finance /  Kotak Bank joins bandwagon of revising FD rates; now, senior citizens can earn up to 7%
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Kotak Mahindra Bank is among the latest to join the bandwagon of revising fixed deposit interest rates after RBI's 35 basis points hike in policy repo rate to 6.25%. The leading private banker now offers a maximum 6.50% rate to the general category, while senior citizens are in for a treat as they will get to earn interest rates on their FD accounts to as high as 7%. The interest rates for elderlies are inflation-beating currently. Notably, the rates are revised on both FDs below 2 crore and bulk deposits with effect from December 9.

FDs below 2 crore:

General Category:

The maturity period from 390 days to less than 2 years has an interest rate of a maximum of 6.50%. While the bank is offering 6.40% on 2 years to less than 3 years tenures; 6.30% on 3 years and above but less than 4 years tenures; 6.25% on 4 years and above but less than 5 years tenures; and 6.20% on 5 years and above and inclusive of 10 years.

The interest rate of 6.25% is also applicable for 365 days to 389 days of tenure. While the rate is at 6% on 364 days tenure; 5.75% on 271 days to 363 days tenure; 4.25% on 121-179 days; and 4% on 91-120 days. The bank offers an interest rate of 5.50% on FDs maturing from 180 days to 270 days tenure.

On shorter tenures, such as 46 - 90 days, the rate is 3.50%, while the rate is 3.25% on 31 - 45 days; 3% on 15 - 30 days; and 2.75% on 7 - 14 days.

Senior Citizens:

The highest rate offered to Senior Citizens by Kotak Bank would be 7% on tenures from 390 days to less than 2 years. While the interest rate is 6.90% on 2 years but less than 3 years tenure; 6.80% on 3 years and above but less than 4 years tenure; 6.75% on 4 years and above but less than 5 years; and 6.70% on 5 years and above up to and inclusive of 10 years. An interest rate of 6.75% is also applicable for 365 days to 389 days of tenure.

The bank is offering a 6% rate on tenures from 180 days to 270 days. The rate is higher at 6.25% on 271 days to 363 days tenure and at 6.50% on 364 days tenure. On shorter tenures, the rate is 4.75% on 121 - 179 days; 4.50% on 91 - 120 days; 4% on 46 - 90 days; 3.75% on 31 - 45 days; 3.50% on 15 - 30 days; and 3.25% on 7 - 14 days.

Bulk FDs:

The bulk FDs range from 2 crore to 25 crore and above. While the tenures start from 7 days to inclusive of 7 years.

Kotak Bank is offering 3.75% to 6.80% on FDs from 2 crore to below 5 crore, while the interest rate from 4.25% to 7% on FDs from 5 crore but below 25 crore.

On FDs from 25 crore and above, the interest rates vary from 4.25% to 7.20%.

Under the bulk deposits, Kotak Bank said, the senior citizens' rate is not applicable on NRO/NRE deposits, while no interest will be payable for NRE TDs staying less than 1 year.

For FDs with tenure below 181 days, the interest will be calculated at maturity as simple interest. The calculation of interest is basis 365 days in a non-leap year and 366 days in a leap (calendar) year.

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