Kotak Bank to pay 6% interest on savings a/c

Tribune News Service

Chandigarh, June 2

Notwithstanding fall in interest rates, Kotak Mahindra Bank (KMB) today announced that its customers will continue to enjoy 6% interest per annum on savings account for balance above Rs 1 lakh and 5% interest per annum on savings account for balance up to 1 lakh.

The private sector bank has 66 branches in Punjab and 42 in Haryana. In Chandigarh, it has seven branches.

Ambuj Chandna, senior executive vice-president, Kotak Mahindra Bank, said, “We are in an environment where interest rates are headed downwards. While the focus is always on the borrower, very little or no thought is being spared for depositor. In this scenario, we have taken a decision to continue with our 6% proposition. The savings account can be a powerful tool for financial planning. We have a unique product suite, with customised offerings for each target segment that are bundled with the benefits of 6% interest rate.”

He said the KMB was among the first banks to revise its interest rates upwards to 6% per annum for balance above Rs 1 lakh. Most banks still continue to offer 4% per annum.