YES Bank did it on the same day of RBI’s announcement and after few days, here’s Kotak Mahindra bank, doing the same thing. The bank has announced that it will offer 6% interest rate for its Savings bank account starting from 1 November 2011. If you recall, YES bank too has offered same 6%. So it looks like it 6% is the news 4% for savings bank accounts.
But a thing to note here is that 6% interest will be applicable to any amount that is over Rs.1 lakh amount. For any amount lower than that mark, it is only good for 5.5%. For example, if you have Rs.1.60 lakhs in your SB account, Rs.1 lakh will earn interest at 5.5% and remaining 60000 will earn interest at 6%.
Both YES and Kotak Mahindra are privately held and we are yet to see similar announcements from Public Sector banks’. Sooner or later, you should hear from them too or else, they would run out of liquidity fast.