NEW DELHI: Private lender Kotak Mahindra Bank has cut interest rate on savings account deposits up to ₹1 lakh. The rate of interest has been lowered to 4.5% from 5% earlier, according to the bank’s website. The revision in interest rate comes into effect from April 15, 2019.
The interest rate on savings account deposits on balance above ₹1 lakh and up to 1 crore remains unchanged at 6%. Similarly, the interest rate on savings account balance above ₹1 crore remains steady at 5.5%.
The cut in interest rate on savings account deposits comes in the wake of Reserve Bank of India cutting repo rate by 25 basis points to 6% earlier this month.
SBI, the country’s largest lender, earlier this week revised interest rate of large savings accounts and also cut lending rates.
Starting 1 May, SBI will link savings bank deposits above ₹1 lakh (275 bps below RBI’s repo rate) and short-term loans like overdraft with RBI’s repo rate in a move to improve interest rate transmission for consumers. So a cut in RBI’s repo rate will bring down the interest rate SBI will offer on savings account deposits above ₹1 lakh.
From May 1, SBI savings account deposits above ₹1 lakh will fetch 3.25%. SBI savings bank account customers with balances up to ₹1 lakh will continue to get 3.5% interest rate.