Coming close on the heels of the surprise 40 basis points (bps) hike in the repo rate to 4.4% by the RBI, Kotak Mahindra Bank has announced an increase in deposit rates across tenures for retail customers. The new rates are applicable on all deposits below Rs. 2 crore and come into effect from May 6.
As per the press release, the rate of interest on the popular, 390-day (12 months and 25 days) deposit has been raised by 30 bps to 5.5% and that on the 23-month deposit by 35 bps to 5.6%. Going by the revised rates, the bank’s other deposits such as the 364-day deposit will offer 5.25% and the 365-day – 389-day deposit will offer 5.4%. Senior citizen customers, that is, those 60 years and above will get an additional 50 bps on these rates.
ICICI Bank too has hiked its deposit rates with effect from May 5. For example, for a single deposit of Rs. 2 crore and above but less than Rs. 5 crore, 185-day to 210-day deposit will offer 3.75% and the 271-day to 289-day deposit will offer 4%. Interest rates on single deposits of under Rs. 2 crore were last revised on January 20.