New Delhi: The festive season is going on in the country. In such a situation, many banks are offering various offers to attract their customers. Under this, many banks have updated their fixed deposit rates, while some banks have announced a cut in the interest rates on loans. But some banks have also shocked their customers. In this sequence, Kotak Mahindra Bank has reduced the interest rates on its savings account. The new interest rates have become effective from Thursday, October 17.
 

The new rate will be applicable on balances less than Rs 5 lakh.
 

According to the official website, Kotak Mahindra Bank has reduced interest rates on savings accounts below Rs 5 lakh. After which its interest rates have come down from 3.5 percent to 3 percent. In such a situation, this move of the bank before Diwali has come as a big shock to the customers. Let us tell you that earlier there were only two slabs for savings accounts. The first was for accounts with an amount less than Rs 50 lakh, while the second was for accounts with a balance of more than Rs 50 lakh. The bank offers 3.5% interest to customers on accounts with a balance of less than Rs 50 lakh, while the bank gives 4 percent interest on accounts with a balance of more than Rs 50 lakh.
 

NRI and MRO will get this much interest
 

Now, under the new slab introduced by the bank, accounts with balances less than Rs 5 lakh will get only 3 percent interest. Note that for non-residents (NRE/NRO), the interest rate for balances above Rs 50 lakh is 3.50% per annum. It is known that interest on savings accounts is calculated every three months from April 2016. In such a situation, quarterly interest is calculated on 30 June, 30 September, 31 December and 31 March every year.