Kotak Mahindra Bank has given a big shock to its customers. The bank has reduced the interest rates on savings accounts with balance less than Rs 5 lakh. Now customers will get 3 percent annual interest instead of 3.5 percent annually.
New Delhi: Festive season is going on in the country. In such a situation, many banks are offering various offers to attract their customers. Under this, many banks have updated their fixed deposit rates, while some banks have announced a cut in the interest rates on loans. But some banks have also shocked their customers. In this sequence, Kotak Mahindra Bank has reduced the interest rates on its savings account. The new interest rates have become effective from Thursday, October 17.
New rate will be applicable on balance less than Rs 5 lakh
According to the official website, Kotak Mahindra Bank has reduced the interest rates on savings accounts below Rs 5 lakh. After which its interest rates have come down from 3.5 percent to 3 percent. In such a situation, this move of the bank before Diwali has given a big shock to the customers. Let us tell you that earlier there were only two slabs for savings accounts. The first is for accounts with a balance of less than Rs 50 lakh, while the second is for accounts with a balance of more than Rs 50 lakh. The bank offers 3.5% interest to customers on accounts with a balance of less than Rs 50 lakh, while the bank gives 4 percent interest on accounts with a balance of more than Rs 50 lakh.
NRI and MRO will get this much interest
Now under the new slab introduced by the bank, accounts with balance less than Rs 5 lakh will get only 3 percent interest. Note that for non-resident (NRE/NRO), the interest rate for balance more than Rs 50 lakh is 3.50% per annum. It is known that interest on savings account is calculated at an interval of every three months from April 2016. In such a situation, quarterly interest is calculated on 30 June, 30 September, 31 December and 31 March every year.
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