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.
|Tenure||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|7 - 14 Days||2.75%||3.25%|
|15 - 30 Days||3%||3.5%|
|31 - 45 Days||3.25%||3.75%|
|46 - 90 Days||3.5%||4%|
|91 - 120 Days||4%||4.5%|
|121 - 179 days||4.25%||4.75%|
|181 Days to 269 Days||6%||6.5%|
|271 Days to 363 Days||6%||6.5%|
|Note: All interest rates are updated as of 1st Aug 2023|
Resident Indians, senior citizens, members of HUF, and NRIs are eligible to open their fixed deposit accounts with Kotak Mahindra Bank.
One can start a fixed deposit with a minimum amount 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.
Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer
1. If you already hold a Savings or Current Account with Kotak, a Fixed Deposit can be opened using the below procedure.
Login to the Kotak Bank Application, Go to the Banking section in the App, Click on the Fixed/Recurring Deposits option, then click on 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 the form once can submit the details and create an FD.
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 the form once can submit the details and create an FD.
2. 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 as well as the soft copy of the same. The bank official will help you to directly open an FD without having any savings / current account.
3. 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.
The Tax applications remain the same irrespective of the bank in which you open the fixed deposit.
The bank is entitled to deduct TDS @ 10% as per Section 194A of the Income Tax Act if interest income exceeds Rs 40,000 (Rs 50,000 for resident senior citizens) during the financial year.
However, if your total income is below the taxable limit, you can submit Form 15G (For individuals aged less than 60 years) or Form 15H (For individuals aged more than 60 years) to the bank and request them not to deduct any TDS.
One can invest in Fixed Deposits when interest rates are high or when someone has retired and aims to have a safe investment.
Yes, for such extreme situations, each depositor is insured up to a maximum of ₹5 lakh (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.
Offline: Place a request at your nearest Kotak Branch. With this method, the amount will be credited to your account within 24-48 hours.
Online: Log in to the app or website and open the FD that you want to break, click on Premature Withdrawal and the amount will be credited within the same day.
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 utilize (fully or partially) the amount lying in Fixed Deposit to clear the cheque.
Disclaimer: The calculator and the results of the same are based on information inputted by you and extracted from third party sources. The information on this page is for illustrative purposes only and does not amount to any investment advice or recommendation. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. The information displayed on this page does not constitute an invitation to invest in any product nor is it a promise of performance. Interest rates are not updated in real time and you are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions.