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Kotak Mahindra Bank FD Interest Rate

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 fa...Read More

Kotak Mahindra Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 30 Jan 2024
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 - 14 Days2.75 %3.25 %
15 - 30 Days3 %3.5 %
31 - 45 Days3.25 %3.75 %
46 - 90 Days3.5 %4 %
91 - 120 Days4 %4.5 %
121 - 179 days4.25 %4.75 %
180 Days7 %7.5 %
181 Days to 269 Days6 %6.5 %
270 Days6 %6.5 %
271 Days to 363 Days6 %6.5 %
364 Days6.5 %7 %
365 Days to 389 Days7.1 %7.6 %
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390 Days (12 months 25 days)
7.2 %7.7 %
391 Days - Less than 23 Months7.2 %7.7 %
23 Months7.2 %7.7 %
23 months 1 Day- less than 2 years7.2 %7.7 %
2 years- less than 3 years7 %7.5 %
3 years and above but less than 4 years6.5 %7 %
4 years and above but less than 5 years6.25 %6.75 %
5 years and above upto and inclusive of 10 years6.2 %6.7 %

Types of Kotak Bank Fixed Deposits

  • Standard FD: It requires an investor to invest his money for a fixed period of time, 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.
  • 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, etc. Special FDs offer a higher interest rate and are popular among various investors.
  • Tax saving FD: Tax saving FDs, unlike standard FDs, cannot be booked for less than a period of 5 years. The amount invested is exempt from tax under section 80C, but the interest generated from the FD is liable to be taxed.  
  • 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 avail the benefits of a changing interest rate. RBI guidelines determine the change in the rate of interest.
  • Kotak Bank Fixed Deposit Interest Rates.Generally, with the rise in repo rates, banks tend to increase FD rates and Loan rates, The repo rate by the RBI acts as a benchmark for banks, NBFCs, and other financial institutions. This is because the repo rate is the interest rate at which the RBI lends money to the banks. Kotak Mahindra bank offers several advantages ranging from assured returns to availing an overdraft facility against your fixed deposit depending on its tenure.

Pros and Cons of Investing in Kotak Bank’s FD

Pros:

  • Interest is paid on a quarterly basis.
  • One can continue to invest till maturity.
  • One can save tax by investing into 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.
  • Amount invested with Bank is covered by DICGC insurance for the total sum of Rs 5 lakhs. 

Cons:

  • Interest earned on fixed deposits is not tax-free and subject to  tax as per your applicable slab rate. .
  • Also in some cases, banks deduct TDS at the time of paying the fixed deposit interest. So if the individual has income below the basic exemption limit as defined under the Income-tax Act, he/she will still have to file the Income Tax return to claim the refund of TDS deducted by the bank
  • Historically Fixed Deposits have given lower returns as compared to Mutual Fund and equity instruments.

Kotak Bank FD Eligibility Criteria

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.

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 - PAN Card, Driving License, Passport, Voter’s ID or Aadhar Card, Utility Bill, Bank account Passbook (Updated and should not be more than 3 months old)

How to Open an FD with Kotak Bank

1. 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 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.

  • 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 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.

Tax implications on Kotak Fixed Deposits

The Tax applications remain the same irrespective of the bank in which you open the fixed deposit.

  • The interest earned on Fixed Deposit is taxable in the hands of an individual (age less than 60 years). The tax is levied as per the normal tax slab applicable for such individuals.
  • In the case of a senior citizen (Age above 60 years), a deduction of up to Rs 50,000 is available under section 80TTB.
  • In case of a 5-year tax saving fixed deposit, you will be entitled to a deduction under section 80C of the Income Tax Act, wherein the deduction would be equal to the amount deposited during the Financial year with the maximum threshold limit of Rs 1,50,000. (This benefit is not available for individuals who opt for a New Tax Regime)

Tax rates on interest

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.

FAQs

When is the right time to invest in an FD?

One can invest in Fixed Deposits when interest rates are high or when 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 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.

How can I break my Kotak Bank FD?

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.

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 utilize (fully or partially) the amount lying in Fixed Deposit  to clear the cheque.

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Kotak Mahindra Bank

Calculate Kotak Mahindra Bank FD Returns

₹1,00,000
390 Days (12 months 25 days)
7 - 14 Days15 - 30 Days31 - 45 Days46 - 90 Days91 - 120 Days121 - 179 days180 Days181 Days to 269 Days270 Days271 Days to 363 Days364 Days365 Days to 389 Days390 Days (12 months 25 days)391 Days - Less than 23 Months23 Months23 months 1 Day- less than 2 years2 years- less than 3 years3 years and above but less than 4 years4 years and above but less than 5 years5 years and above upto and inclusive of 10 years
7.2 %
Yes
No
Maturity Amount₹1,07,693

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