Leading private sector lender, Kotak Mahindra Bank announced on December 11th, an increase in interest rates on Fixed Deposits (FDs) of less than ₹2 crore up to 85 basis points. As per the hike in interest , senior citizens can earn up to 7.80% for tenures ranging from 23 months to 2 years for their Fixed Deposits (FDs)
The increased interest rate for fixed deposits for senior citizens serves as a valuable incentive, ensuring a higher return on savings and addressing the specific financial needs of retirees, thereby providing a stable and enhanced source of income during their retirement years.
Virat Diwanji, Group President and Head – Consumer Bank at Kotak Mahindra Bank, stated, “Fixed deposits are considered safe and low-risk investments, particularly by senior citizens.”
The last time Kotak Mahindra Bank changed interest rates was October 25, 2023. The current change in interest rates for was decided as a result of the central bank’s decision to maintain the repo rate at 6.5% in its December 2023 monetary policy committee (MPC) meeting.
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