Private sector lender Kotak Mahindra Bank announced a 0.50% to 4% increase in interest rates on savings accounts with deposits of more than Rs 50 lakh a day after the Reserve Bank of India raised policy rates to curb inflation.
The city-headquartered lender said in a statement that it also raised its term deposit rate by 0.25%.

Daily balances above Rs 50 lakh in savings accounts will now receive 4% APR, compared to the previous rate of 3.5%, while deposits below Rs 50 lakh will receive 3.5%.

Consumer price inflation has been hovering above 7%, and the RBI expects inflation to remain at 6.7% in FY23, so Wednesday raised its key interest rate by another 0.5%.

Shanti Ekambaram, group president of consumer banking at Kotak Mahindra Bank, said interest rates are now on an upward trajectory, and it has raised rates on savings accounts and fixed deposits of various tenors for the benefit of customers.

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The time deposit rate hike involves multiple tenors. It added that the interest rate had been raised by 0.25% for deposits above Rs 2 crore.