Kotak Mahindra Bank Slashes Savings Account Interest Rates; Here’s How To Make Your Money Work Harder

Kotak Mahindra Bank has announced a simplification successful its savings relationship liking rates by 25 ground points, effective from April 25, 2025. This accommodation intends that regular balances successful savings accounts up to Rs 50 lakh will now gain an liking complaint of 2.75% per annum, while balances exceeding Rs 50 lakh will person 3.25% per annum.

Previously, these were group astatine 3.00% and 3.50% respectively. The revised rates use to some resident and non-resident accounts, including NRE and NRO accounts. According to Kotak Mahindra Bank, "Effective April 25, 2025, regular balances successful Savings Account up to Rs. 50 Lakh will gain 2.75% liking p.a. and supra Rs. 50 Lakh will gain 3.25% p.a. respectively. These liking rates are applicable for some Resident and Non Resident Accounts (NRE/ NRO)."

In summation to changes successful savings relationship rates, Kotak Mahindra Bank has besides decreased its fixed deposit (FD) liking rates by up to 30 ground points connected prime tenures. This marks nan 2nd simplification successful fixed deposit rates by Kotak Mahindra Bank this month, pinch nan caller rates effective from April 23, 2025. The revised fixed deposit rates screen various maturity periods, impacting customers' returns connected their deposits. 

The move by Kotak Mahindra Bank comes amid a broader inclination of banks reassessing their liking complaint structures successful consequence to changing marketplace conditions. Following nan Reserve Bank of India’s determination to trim nan repo complaint by 25 ground points connected April 9, 2025, respective backstage assemblage banks person reduced liking rates connected their savings accounts successful consequence to nan changed monetary landscape. ICICI Bank, HDFC Bank, Axis Bank, YES Bank, and DCB Bank person each rolled retired revised rates, aligning pinch nan RBI’s dovish stance.

ICICI Bank, India’s second-largest lender by marketplace capitalisation, has slashed its savings relationship liking rates by 25 bps. Effective immediately, relationship holders pinch balances beneath Rs 50 lakh will now gain 2.75% per annum, down from 3%. For balances of Rs 50 lakh and above, nan complaint is now 3.25%, compared to nan earlier 3.5%. These rates are calculated connected nan regular closing balance.

HDFC Bank has made akin revisions. As per its website, from April 12, 2025, savings relationship balances beneath Rs 50 lakh now gain 2.75% per annum (down from 3%), while balances of Rs 50 lakh and supra pull 3.25% interest, down from 3.5%.

Axis Bank has besides adjusted its savings liking rates, effective April 15. For balances beneath Rs 50 lakh, nan complaint is now 2.75% per annum. Balances betwixt Rs 50 lakh and Rs 2,000 crore gain 3.25%, while amounts supra Rs 2,000 crore will gain liking linked to nan overnight MIBOR positive 0.70%.

YES Bank’s revised rates travel into effect from April 21. The slope now offers betwixt 3% and 5% per annum connected home and NRI savings accounts, depending connected nan equilibrium slabs. The liking is calculated connected incremental balances astatine applicable slab rates.

How to support your money moving smarter

With apical backstage banks slashing savings relationship liking rates aft nan RBI’s caller 25 bps repo complaint cut, your idle money could beryllium earning little than inflation. ICICI, HDFC, and Axis Bank now connection conscionable 2.75% per annum connected balances beneath Rs 50 lakh — making it important to rethink wherever and really you parkland your cash.

"Reduction of savings relationship liking rates for balances nether Rs 50 lakh is simply a clear awesome for savers to reassess really they’re managing idle cash. When existent returns are eroded, keeping ample sums successful low-yield savings accounts is nary longer efficient. There are amended ways to put your surplus costs to work. Start pinch sweep-in FD options for illustration HDFC’s Money Maximiser, which automatically channels excess balances into fixed deposits, giving you higher returns while maintaining liquidity. Then location are liquid and ultra-short-term communal funds, which put successful short-term indebtedness instruments and tin make yields successful nan scope of 5%–7% annually. These are suitable for those comfortable pinch humble marketplace exposure," said Anand K Rathi, co-founder of MIRA Money.  

He added: "Digital-first banking platforms besides coming absorbing opportunities, often offering 6%–7% returns connected savings done tie-ups pinch accepted banks. Of course, these travel pinch a somewhat higher risk, and investors should measure their comfortableness level. The cardinal is to find nan correct balance. Maintain capable liquidity for emergencies, but deploy nan remainder much strategically. Even humble shifts from idle to progressive rate guidance tin importantly amended semipermanent outcomes."