India’s fourth largest private sector bank reiterates its commitment to retail customers, despite falling interest rate trend
NewZNew (Chandigarh) : 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.