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Kotak Mahindra Bank Fixed Deposit

Updated 06 Dec 2023

Fixed Deposits (FDs) are investment instruments wherein money can be deposited for a fixed tenure with the bank. Some deposit-taking Non-Banking Finance Companies  (NBFC) offer a fixed deposit facility to their customers. Kotak Bank was an NBFC earlier, and then it evolved over the years and converted into a commercial bank after getting a Banking license from RBI in 2003.


FDs give a higher interest yield compared to a savings account. Kotak Bank is one of the highest fixed deposit interest providers amongst other commercial banks. This article gives you details about Kotak Fixed Deposits.

Types of Kotak Bank Fixed Deposits

  • Standard FD
  • Special FD
  • Tax saving FD 
  • Floating FD

Benefits of Investing in Kotak Bank’s FD

  • Interest is paid every quarter.
  • One can continue to invest till maturity.
  • One can save tax by investing in tax-saving fixed deposits.
  • Kotak provides a nomination facility so a Fixed Deposit account holder can assign a nominee for the amount deposited.
  • Using the online application of Kotak Bank, one can easily deposit in a fixed deposit account by opening an account with the bank.
  • The amount invested with Bank is covered by DICGC insurance for the total sum of Rs 5 lakhs.

Features of Kotak Bank Fixed Deposits

Standard FD

  • An investor must invest for a fixed period at a predetermined interest rate.
  • Standard FD tenures vary from 7 days to 10 years. This is the most popular FD option chosen by investors.
  • The interest rate for this FD ranges from 2.75% to 7.70% across the general public and senior citizens.

Special FD

  • Special FDs are ‘special’ because they are usually offered for a special period.
  • A special period can be anything, like 290 days or 390 days.
  • Special FDs offer a higher interest rate and are popular among various investors.
  • The interest rate for this FD ranges from 2.75% to 7.70% across the general public and senior citizens.

Tax-saving FD

  • Unlike standard FDs, tax-saving FDs cannot be booked for less than 5 years.
  • The amount invested is exempt from tax under section 80C, but the interest generated from the FD is liable to be taxed.  
  • The interest rate ranges from 7.00% to 7.50% for the general public and senior citizens.

Floating FD

  • Not every bank in India offers its investors the option of a flexible interest rate.
  • The rate changes quarterly or yearly, and the investors can benefit from a changing interest rate.
  • RBI guidelines determine the change in the rate of interest.

Kotak Bank FD Eligibility Criteria

  • Resident Indians
  • Senior citizens
  • Members of HUF
  • NRIs are eligible to open their fixed deposit accounts with Kotak
  • Mahindra Bank

One can start a fixed deposit with a minimum of Rs. 5,000. (if it's your first Fixed Deposit, the minimum amount is Rs. 10,000/-). There isn't any maximum limit for the fixed deposit amount.

Documents required for Kotak Bank FD account

Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer

 

For Identity Proof and Signature Proof

  • PAN Card
  • Driving License
  • Passport
  • Voter’s ID or 
  • Aadhar Card

For Address proof

  • Aadhar Card
  • Utility Bill
  • Bank account Passbook (Updated) should not be over 3 months old

How to Open an FD with Kotak Bank

If you already hold a Savings or Current Account with Kotak, a Fixed Deposit can be opened using the below procedure.


Using Kotak Bank Mobile Application (App)

  • Login to the Kotak Bank Application, Go to the Banking section in the App, Click on the Fixed/Recurring Deposits option, then click Open Fixed Deposits. 
  • By this, you will get an online form in which you will be required to select the FD tenure and insert the deposit amount. 
  • After filling out the form, once can submit the details and create an FD.


Using Kotak Bank Internet banking website

  • Login to the Kotak Internet Banking website and go to the “Deposits” tab. Click on Fixed Deposit. 
  • By this, you will get an online form in which you will be required to select the FD tenure and insert the deposit amount. 
  • After filling out the form, one can submit the details and create an FD.


If you are a new customer of Kotak and do not hold any account, you can visit the nearest Kotak Bank with the Original PAN & Aadhar and the soft copy of the same.

The bank official will help you to directly open an FD without having any savings / current account.

Also, there is an option to create a savings/ current account with the bank and then open an FD using a Mobile application or Internet Banking Facility.

Fixed Deposit Premature Withdrawals in Kotak Mahindra

There are multiple modes of breaking your FD. Let’s take a look at them.

 

1) Via Mobile Banking

  • Navigate to Banking.
  • Choose Fixed/Recurring Deposits.
  • Opt for Premature Withdrawal.

2) Through Net Banking

  • Access Investment -> Deposit.
  • Click on Premature Withdrawal of Deposit.
  • Your funds will be immediately transferred to your account using the above online methods.

3) By visiting a local Kotak Branch

  • When using this method, expect the funds to reflect in your account within 24-48 hours.
  • Bear in mind for Deposits with a tenure of 181 days or more, an early withdrawal will incur a 0.50% penalty on the applicable interest rate.

FAQs

When is the right time to invest in an FD?

One can invest in Fixed Deposits when interest rates are high, or someone has retired and aims to have a safe investment.

Is the Rs. 5 lakh DICGC insurance cover applicable separately for every bank?
 

Yes, for such extreme situations, each depositor is insured up to a maximum of ₹5 lakhs (for both principal and interest). In case you have multiple fixed deposits with several banks, the insurance coverage cap is separately applied to the amount in every bank.

How can I break my Kotak Bank FD?

Offline: Place a request at your nearest Kotak Branch. This method will credit the amount to your account within 24-48 hours.
Online: Log in to the app or website and open the FD you want to break, click on Premature Withdrawal, and the amount will be credited within the same day.

What is Kotak as a Sweep Facility for FD?

Yes, Kotak has a sweep facility. You can link your existing Fixed Deposit to the Savings/Current Account. Whenever there is a shortfall of funds in the Account to clear a cheque or while making any online payment, the bank will utilise (fully or partially) the amount lying in Fixed Deposit to clear the cheque.

Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the information displayed is subject to change and are provided on an as-is basis. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of information contained on this website.

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