Kotak Mahindra Bank Cuts Down Interest Rates on Savings Account

Amid the falling rate regime that we are facing in the COVID 19 Times, a yet another leading bank – Kotak Mahindra Bank has cut down interest rates on Savings Bank Account to 3.50 percent for balance up to Rs 1 lakh, w.e.f May 2020.

The fall in Saving Account Interest Rates reduces monthly income on your cash parked in the bank thus making it less attractive to keep the money idle. The effective interest rates on Savings Account from May 2020 is as follows:

Kotak Mahindra Bank’s revised Savings Account Interest Rate-

Thus the rate of interest for balance up to Rs 1 Lakh has been cut by 25 bps and by 50 bps for balance above 1 Lakh respectively. It should be noted here that the same rates are applicable for Basic Savings Bank Deposit Account as well as Small Account holders, including seniors and non-senior customers. As for Non-Residents (NRE/NRO), the applicable Savings Bank Account rate is 3.5% irrespective of account balance.

The rate cut announced after the Reserve Bank of India on May 22 reduced the repo rate as well as reverse repo rate by 40 basis points to 4 percent and 3.35 percent respectively.

The central bank has also extended the EMI deferment or moratorium on term loans and working capital credit facilities by another 3 months, making COVID relief package a 6 months deferment scheme valid till August 31, 2020.