Kotak Mahindra Bank and DCB Bank have opted to increase interest rates on fixed deposits (FDs) for amounts below ₹2 crore, a move that stands in contrast to the prevailing trend of many banks reducing interest rates.
**Kotak Bank’s FD Rate Hike:**
Kotak Mahindra Bank has raised interest rates across tenors ranging from three to five years. This adjustment follows the bank’s last rate revision on October 25, 2023. As per the latest changes, Kotak Bank now offers an interest rate of 2.75% to 7.25% for general customers on deposits maturing in seven days to ten years. Senior citizens can avail rates ranging from 3.35% to 7.80% on these deposits. The highest FD interest rate is offered on deposits maturing in 23 months 1 Day to less than 2 years.
Here is a snapshot of Kotak Mahindra’s latest FD rates:
– 7 – 14 Days: 2.75%
– 15 – 30 Days: 3.00%
– 31 – 45 Days: 3.25%
– 46 – 90 Days: 3.50%
– 91 – 120 Days: 4.00%
– 121 – 179 days: 4.25%
– 180 Days: 7.00%
– … and so on.
**DCB Bank’s FD Rate Hike:**
DCB Bank has also increased fixed deposit interest rates for select tenors on deposits below ₹2 crore, effective from December 13, according to information on the DCB Bank website. The bank is now offering the highest FD interest rate of 8% to general customers and 8.60% for senior citizens after the revision. The new rates range from 3.75% to 8% for general customers and 4.25% to 8.60% for senior citizens, applicable on FDs maturing in seven days to ten years.
DCB Bank’s latest FD rates include:
– 7 days to 45 days: 3.75%
– 46 days to 90 days: 4.00%
– 91 days to less than 6 months: 4.75%
– 6 months to less than 10 months: 6.25%
– 10 months to less than 12 months: 7.25%
– 12 months: 7.15%
– … and so forth.
Despite these individual bank decisions, it’s noteworthy that the Reserve Bank of India (RBI) and the Federal Reserve have maintained their benchmark interest rates. The RBI kept the repo rate unchanged at 6.5%, while the Federal Reserve in the U.S. decided to maintain its key interest rate. The Fed policymakers also indicated expectations for three quarter-point cuts to their benchmark interest rate next year.
