Kotak Mahindra Bank provides less interest rate on saving account

The largest private sector bank Kotak Mahindra Bank has reduced the interest rate mainly on the savings deposits. This they are doing in for the second time of this month.

The bank is reducing the savings interest rate from this 1st April, and this will come to the effect from this Monday. Fixed deposit interest also will get change.

The large bank SBI has reduced its interest amount, and it made the saving interest percentage of 2.75%.

On this Sunday, the bank president Puneet Kapoor told that every interest rate would be on effect from 20th April on a daily basis. If anyone maintains minimum balance of 1 lakh, then they can get 3.75% interest rate on a daily basis. If savings account gets revised, then the interest rate will be 4.5% per annum.

This is 100 bps, which is more than SBI. Flats rates are 25 to 50 bps, which is still higher the bank rates.

Bank spokesman told PTI that interest rate is reflecting, and it is falling, so it is better that people manage the cost of funds and pass to the borrowers.

Kotak is a handful bank, which one is offering higher price, and these many years it has offered 7%. It was also offering a higher rate to bring down their cost.

One opportunity like the higher Casa helps the bank to make the cost down, and the current account holder does not get any interest. Savings account offer 3-3.5% on average.

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