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NEW DELHI: Soon after the Reserve Bank of India announced a 40 basis points rate hike, lenders have also started raising interest rates on fixed deposits.

Kotak Mahindra Bank on Thursday announced a rate increase in fixed deposit interest rates across multiple tenor baskets for retail customers.

The increase in FD rates comes after the RBI announced a 40 basis points increase in the repo rate, the company said. The increase is effective from 6th May on all deposits below Rs 2 crore.

For instance, for 390 days tenor, existing rate is 5.2 per cent, that is being increased to 5.5 per cent. Similarly, if you park your money for 23 months, the interest rate will be 5.6 per cent from 5.6 per cent.

“This fixed deposit rate increase is a golden opportunity being unleashed after nearly two years of low interest rate scenario in the economy. We are among the first banks to announce this hike. This is the apt time for consumers to save for their cherished goals and enjoy increased returns on their savings,” said Virat Diwanji, Group President – Retail Liabilities & Branch Banking, Kotak Mahindra Bank.

Shares of Kotak Bank rose 1.18 per cent to end at Rs 1797.65.

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