New Delhi, Business Desk. Kotak Mahindra Bank has given a big shock to its savings account holders. The bank has cut interest rate on savings deposit accounts by 0.50 percent. Earlier last month, the interest on bank deposits has been reduced twice. The bank said that now the interest rate will be 4 percent on daily deposits of more than one lakh rupees. It was earlier 4.50 percent. At the same time, interest on deposits of less than one lakh will be 3.50 percent.
Before the recent cut in interest rates, savings account holders of Kotak Mahindra Bank were getting 3.75 percent interest rate on deposits up to one lakh. At the same time, 4.50 percent interest was being received on deposits of more than one lakh. Significantly, recently, the RBI has cut the repo rate. RBI has reduced the repo rate by 0.40 per cent to 4 per cent. The RBI has also reduced the reverse repo rate from 3.75 per cent to 3.35 per cent.
The banking system is under some pressure at the moment and interest rates on deposits are being reduced by many banks. Talking about the country’s largest bank SBI, it is paying 2.75 percent interest rate to its savings account holders. At the same time, other banks like Yes Bank are also likely to cut interest rates on deposits in the near future.
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These are the interest rates on deposits of various banks
At present, SBI Savings Account is offering 2.75% and Allahabad Bank 3.50%. At the same time, Bank of India is offering interest rates from 3.25 to 3.50 percent to its savings account holders. Apart from this, Bank of Baroda 3 to 3.25 percent, Axis Bank 3.50 to 4 percent, IDBI Bank 3.50 to 4 percent, ICICI Bank 3.25 to 3.75 percent, HDFC Bank 3.25 to 3.75 percent, Punjab National Bank 3.25 to 3.80 percent, Bandhan Bank 4 to 7.15 percent and Yes Bank is providing interest rate on savings account from 5 to 6.25 percent to its account holders.
