In a notification dated October 26, 2023, the Reserve Bank of India (RBI) set the minimum limit for non-callable fixed deposits (FDs) to Rs 1 crore, so all new FDs up to Rs 1 crore will now be callable. Callable FDs are those in which banks allow premature withdrawal. This week, two private sector banks, Kotak Mahindra Bank and Shivalik Small Finance Bank, have revised their fixed deposit rates, offering senior citizens a maximum of 9.15 percent on callable FDs. Let us see what these banks offer with Revise FD Rates. 

Kotak Mahindra Bank

Kotak Mahindra Bank offers a minimum of 3.35 percent and a maximum of 7.75 percent to senior citizens (people age 60 and above) for the FD tenor of 91 to 120 days and 23 months to less than two years, respectively. The interest rate is 6.0 percent for all tenures beyond 179 days. The interest is 7.50 percent for 180 days, 6.50 percent for terms between 181 and 363 days, and 7.0 percent for 364 days. 

For 365 days to 389 days, the bank offers 7.60 percent; for 390 days, 7.65 percent; and for 391 days to less than 23 months, the interest rate is 7.70 percent. The rate is the highest for two tenures: 23 months, 7.75 percent, and 23 months one day to less than two years, 7.75 percent. The highest interest would generate a 7.98 percent yield, according to the bank’s website. 

Then, from two to less than three years, the interest is 7.60 percent; for three years to less than four years, 7.0 percent; and for the next two tenures, four years to five years, and five years to ten years, it is 6.75 percent and 6.70 percent, respectively.  

The revision is effective from October 25, 2023. 

Shivalik Small Finance Bank

The bank revised rates on October 28, 2023. Seniors may find 9.15 percent interest attractive, which Shivalik Bank is offering for 19 months one day to 20 months. It is the highest interest the bank is offering. For others, the interest rate is 8.65 percent for the same tenure.  

Senior citizens’ interest starts from 4.25 percent for a minimum tenure of seven days to 14 days. For over six months, the interest rate is at least 7.0 percent for all durations. 

From six months to less than 12 months, it is 7.0 percent; for 12 months to 19 months, 8.60 percent; and for 19 months one day to 20 months, the rate is the highest at 9.15 percent. Further, it is reduced to 8.50 percent for the period between 20 months and 36 months, 7.50 percent for the tenure of 36 months one day to 60 months, and 7.25 percent for 60 months one day to 120 months. 

The bank offers non-callable FDs also for all the tenures and offers 15 basis points (0.15 percent) additional rates, but the minimum amount of deposit is Rs 1 crore.