In an environment where interest rates are on downward trajectory, Kotak Mahindra Bank (KMB) today announced that its customers will continue to enjoy 6% interest rate p.a. on savings account for balance above Rs. 1 lakh, and 5% interest rate p.a. on savings account for balance up to 1 lakh.
Taking a cue from the deregulation of savings bank interest rates by the Reserve Bank of India (RBI) in October 2011, KMB was amongst the first banks to revise its interest rates upwards to 6% p.a. for balance above Rs. 1 lakh. Most banks still continue to offer 4% p.a.
Ambuj Chandna, Sr. 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 strong 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 customized offerings for each target segment that are bundled with the benefits of 6% interest rate.”
“We want everyone to earn more with 6%, and not be content with 4% interest. Savers often fail to realise how much more they could earn on their savings with a higher interest rate,” Chandna added.
KMB offers a range of customised products for different customer segments, including children, women, families, citizens above 55 years of age, etc. Each of these segments has unique financial, lifestage and lifestyle needs, and these products are designed to fulfill their goals. Further, they come bundled with 6% interest rates p.a. for balance above Rs. 1 lakh.
KMB’s Silk savings programme meets evolving needs of financially independent women, whereas Kotak Junior provides a long term savings programme for children, while helping instill early savings habits in them. Similarly, Grand is a tailored for customers who are 55+. My Family combines all of the above and offers a comprehensive savings proposition for the entire family.
KMB has been a pioneer in offering seamless and convenient digital banking solutions to customers. The Bank’s Jifi Saver account is a unique social savings bank account which can be seamlessly managed via Twitter and Facebook. Jifi Saver simplifies online shopping, on-the-go transactions, financial planning, etc. while extending benefits and functionalities of a regular savings bank account.
About Kotak Mahindra Bank
Established in 1985, Kotak Mahindra group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd. (KMBL).
Effective April 1, 2015, ING Vysya Bank Ltd merged with Kotak Mahindra Bank Ltd creating a Rs 2 trillion institution (consolidated). As on March 31, 2016, the merged entity – Kotak Mahindra Bank Ltd, has a significant national footprint of 1,333 branches and 2,032 ATMs spread across 674 locations, affording it the capacity and means to serve even better.
The Bank has three Strategic Business Units catering to retail and corporate customers across urban and rural India.
The Consumer Banking business offers complete retail financial solutions including a variety of savings and loan products and innovative digital solutions - Jifi, a first-of-its-kind fully integrated Social Bank Account, redefines digital banking by seamlessly incorporating social networking platforms like Twitter and Facebook with mainstream banking. KayPay is the world’s first bank agnostic instant funds transfer platform using Facebook. On the savings bank account front, the Bank offers higher interest rate at 6% p.a. for balances above Rs. 1 lakh, and provides a comprehensive suite of investment services and transactional conveniences. The Bank’s Wealth Management business is one of India’s largest and provides customized financial solutions to high net worth families.
The Corporate Banking business offers a comprehensive portfolio of products and services – working capital financing, medium term finance, current account, trade services, cash management services, export credit, transaction banking, custody services, debt capital markets, forex and treasury services.
The Commercial Banking business offers a comprehensive portfolio of banking products and services to Small and Medium enterprises (SME) engaged in manufacturing, trading, services and export businesses. It has specialised units, which provide finance to Agri Sector, Commercial Vehicle operators and Infrastructure business. It services farmers across India by providing term loans to purchase tractors. The Bank also offers small ticket gold loans and business loans.