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Kotak Bank FD Interest Rates 2024

Last Updated : 16 Feb, 2024
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Kotak Mahindra Bank is a well-known prominent private bank in India, with its headquarters in Mumbai, Maharashtra. Individuals, NRIs, and Senior Citizens can choose from a variety of fixed deposit options at Kotak Bank. You can place surplus cash with Kotak in a fixed deposit, also known as a term deposit, for a certain period and earn interest on the amount deposited. Compared to other banks in the financial services sector, the bank offers reasonable interest rates with tenure ranging from 7 days to 10 years.

Geeky Takeaways:

  • Kotak Mahindra is a well-established private bank in India that offers various financial services including Fixed Deposits to its customers.
  • The Fixed Deposit facility offered by Kotak Mahindra can be opted for a minimum of 7 days and 10 years as well.
  • The FD carries benefits like tax savings, interest rate payments, loan availability against FD, and so on.
  • Customers can avail of FD facilities at one click via Internet Banking and Kotak Mahindra Banking App if they already have an account with the same bank.

Kotak Bank FD Rates 2024

1. Fixed Deposits Interest Rates for Domestic/ NRO / NRE Less than ₹2 Crore

Tenure

Rate of Interest for General Citizens
(Below 60 Years of Age)
Rate of Interest for Senior Citizens
( Above 60 Years of Age)
7 – 14 Days 2.75% 3.25%
15 – 30 Days 3.00% 3.50%
31 – 45 Days 3.25% 3.75%
46 – 90 Days 3.50% 4.00%
91 – 120 Days 4.00% 4.50%
121 – 179 days 4.25% 4.75%
180 Days 7.00% 7.50%
181 Days to 269 Days 6.00% 6.50%
270 Days 6.00% 6.50%
271 Days to 363 Days 6.00% 6.50%
364 Days 6.50% 7.00%
365 Days to 389 Days 7.10% 7.60%
390 Days (12 months 24 days) 7.15% 7.65%
391 Days – Less than 23 Months 7.20% 7.70%
23 Months 7.25% 7.80%
23 months 1 Day- less than 2 years 7.25% 7.80%
2 years- less than 3 years 7.15% 7.65%
3 years and above but less than 4 years 7.00% 7.60%
4 years and above but less than 5 years 7.00% 7.60%
5 years and above upto and inclusive of 10 years 6.20% 6.70%

2. Fixed Deposits Interest Rates for Domestic/ NRO / NRE ₹2 Crore & above but below ₹5 Crores

Tenure

Rate of Interest for General Citizens
(Below 60 Years of Age)
Rate of Interest for Senior Citizens
( Above 60 Years of Age)
7 – 14 Days 4.00% 4.00%
15 – 30 Days 4.00% 4.00%
31 – 45 Days 4.50% 4.50%
46 – 60 Days 4.75% 4.75%
61 – 90 Days 5.25% 5.25%
91 – 120 Days 5.50% 5.50%
121 – 179 Days 6.00% 6.00%
180 Days 7.00% 7.00%
181 Days to 270 Days 6.50% 6.50%
271 Days to 279 Days 5.50% 5.50%
280Days ‐ 364 days 6.75% 6.75%
365 days ‐ Less Than 15Months 7.25% 7.80%
15 months – less than 18 months 7.25% 7.60%
18 months – less than 2 Years 7.25% 7.60%
2 years and above but less than 3 years 7.00% 7.00%
3 years and above but less than 4 years 6.50% 6.50%
4 years and above but less than 5 years 6.25% 6.25%
5 years and above upto & inclusive of 7 years 6.25% 6.25%

Features and Benefits of Kotak Bank Fixed Deposit

1. Simple Investment with Liquidity and Flexibility: Kotak Bank Fixed Deposit is a secure investment option that provides guaranteed returns on investment. Fixed deposit returns are unaffected by any external circumstances. Investors can start investing with minimum Rs 5000.

2. Flexible Tenure: Customers can choose from a variety of terms ranging from 7 days to 10 years with Kotak Bank Fixed Deposit. Customers will not only have more flexibility, but they will also be able to plan their investment horizon based on their goals.

3. Premature/Partial Withdrawal: Kotak Bank Fixed Deposits are a very liquid investment option in times of emergency. You can close your deposits partially or fully before their maturity date and have funds credited to your account for emergency use.

4. Additional Interest: Senior citizens get an extra 0.50% interest rate on top of the regular fixed deposit interest rate. This will allow esteemed customers to earn better interest rates on their hard-earned money.

5. Overdraft against FD: Overdraft against Fixed Deposit is also available from Kotak Bank. This is a great way to get instant liquidity against a fixed deposit without breaking it.

6. Automatic Renewal Facility : You can open an Kotak Bank Fixed Deposit that will automatically renew. This ensures that your FD is automatically renewed for the same term on the maturity date, resulting in no interest loss.

Types of Kotak Bank FD Schemes

1. Kotak Mahindra Regular Fixed Deposit

Deposit

Minimum : ₹5,000

Maximum : no limit

Tenure

7 days – 10 years

Special Categories of Customers

Additional 0.50% p.a interest will be offered to senior citizen

Premature Withdrawal Facility

Premature facility is available

Loan Facility

Available to get loan of some portion of Fixed Deposit.

Payment of Interest

FD opened with monthly interest payout would be paid at discounted rates.

Eligibility

A regular fixed deposit scheme can be opened by a resident Indian, a public or private limited company, a HUF, a trust, or a partnership firm.

2. Kotak Mahindra Tax Saving Fixed Deposit

About

Depositors are eligible for a tax benefit under Section 80C of the Income Tax Act. The advantage is available for deposits of up to INR 1,50,000 per year.

Tenure

Minimum – 5 years

Maximum – 10 years

Deposit Amount

Minimum – ₹1,000

Maximum – 1,50,000 in a financial year.

Lock in period 

5 years

Premature Withdrawal Facility

Premature of foreclosure not allowed before 5 years

Nomination

This facility is available.

Loan Facility

No loan facility available

3. Kotak Mahindra Senior Citizen Fixed Deposit

About

This deposit is offered to resident senior citizens aged 60 years and above

Deposit

Minimum : ₹5,000

Maximum : no limit

Tenure

7 days – 10 years

Loan Facility

Available to get loan of some portion of Fixed Deposit.

Payment of Interest

  • The minimum term for monthly payout FDs is 181 days, and interest payout will be discounted in accordance with the applicable rates.
  • Interest can be payable monthly , quaterly or at maturity

4. Kotak Mahindra Sweep-In Facility

Liquidity

With the Sweep-In feature, depositors can experience liquidity by linking their current or savings account to their fixed deposit.

Sweep-in facility

The sweep-in facility will only take the principal amount into consideration.

Interest Rate

With the relevant interest rates of a Fixed Deposit, the Sweep-In service allows you to earn substantial returns while maintaining the liquidity of your savings account.

How to Invest in Kotak Bank FD?

There are several ways to create an Kotak Bank FD account, including offline, Internet Banking, and using a mobile app.

1. Internet Banking

To start an Kotak Bank FD account using internet banking, follow the procedures outlined below :

1. Login to your Kotak Bank NetBanking account.

2. Select the ‘Deposit Opening’ option from the ‘Online Term Deposit’ menu.

3. Read and thoroughly review all of the ‘Terms & Conditions’ before proceeding to fill out all of the required information.

4. Using a One-Time Password (OTP), authenticate the transaction.

5. The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

2. Mobile App – Kotak Bank App

To create an FD account using the Kotak Bank Mobile App, follow the procedures outlined below :

1. Sign in to the Kotak Bank App after downloading it.

2. To proceed, select the Term Deposits option.

3. Fill out all of the information, including personal information, nominee information, and maturity instructions.

4. Using a One-Time Password (OTP), authenticate the transaction.

5. The FD account will be opened after successful login. Its acknowledgement slip will also be accessible for download.

3. Offline Kotak Bank FD Opening

To open an Kotak Bank FD account offline follow the steps given:

1. Visit your local Kotak Bank branch.

2. Fill up the Kotak Bank FD application form and submit it together with all required papers and the deposit amount.

3. When the application is properly processed, the Kotak bank will provide an FD receipt.

Eligibility to Open an Kotak Bank FD Account

When considering to invest in Kotak bank FDs, investors have to fulfil the following criteria:

1. You must have an individual or Joint FD Account with the bank.

2. NRIs can only invest through NRE and NRO Accounts.

3. Incase of Hindu Undivided Family Account, investor should be memeber of HUF.

4. Minors can invest in these FDs as well, but they must be accompanied by their parents or guardians.

5. For these sort of Investments ,Trusts, public and private limited companies, partnerships, and sole proprietorships are also eligible.

Documents Required to Open Kotak Bank FD

For Opening an FD in Kotak Bank, investors must ensure that they have the following documents with them :

1. Proof of Identity

  • Pan Card
  • Voter ID
  • Aadhaar Card
  • Ration Card including a photograph
  • Driving License
  • Senior Citizen ID
  • Passport

2. Proof of Address

  • Electricity Bill
  • Telephone Bill
  • Bank Statement with cheque
  • Passport
  • Identity Card issued by Post Office

Customers also need to give their two passport-sized photographs at the time of opening the deposit account.

Tax on Kotak Bank Fixed Deposit

The tax applications are:

1. Individuals under the age of 60 are taxed on the interest earned on their fixed deposits. The tax is charged in accordance with the standard tax slab applicable to such people.

2. Section 80TTB allows a deduction of up to ₹50,000 for senior citizens (over the age of 60).

3. Under Section 80C of the Income Tax Act, you are eligible for a deduction in the case of a five-year tax-saving fixed deposit. The deduction will be equivalent to the amount deposited during the financial year, with a maximum threshold limit of ₹ 1,50,000. This benefit is not available to those who opt for a New Tax Regime.

Loan Against Kotak Bank FD

Customers with Kotak Bank FDs may take loans against their investments under following conditions:

1. The limit is set at 90% of the FD’s value.

2. The interest rate charged ranges from 5% to 7.5%.

3. The maximum period for such a loan is the same as the maturity term for the FD.

Premature Closure of Kotak Bank Fixed Deposit

The premature closure of Kotak Bank Fixed Deposit are subject to penalty on the basis of the tenure of the deposite. The penalty rate for premature closure of FDs, including partial closure, has been determined by the Kotak Mahindra bank as shown below :

Tenure of Fixed Deposit Penalty
Less than equal to 181 days NIL
Greater than 180 days to 364 days 0.50%
365 days and above 1.00%

Frequently Asked Questions (FAQs)

1. Who is eligible for Kotak Bank’s Regular Fixed Deposit Scheme?

Answer:

The deposit scheme is open to all resident persons, HUFs, minor, senior citizens, Trusts, Public and Private limited companies, Partnerships, and Sole Proprietorships

2. Can I make a premature withdrawal from my Kotak Bank Tax Saving Fixed Deposit?

Answer:

Premature withdrawal is not permitted for Kotak Bank Tax Saving Fixed Deposits. The minimum lock-in time for the Kotak Mahindra Bank Tax Saver FD is 5 years.

3. Are there any penalties if I close my loan against FD early?

Answer:

No, Kotak Mahindra Bank does not apply prepayment penalties for loans against FDs.

4. Is it required to have a Savings/Current Account with the bank before opening an FD Account?

Answer:

According to bank regulations, in order to open an FD account, you must first have a Savings/Current Account with the bank. This is to indicate that the customer has already had an excellent experience with the bank and can now open an account online via net banking or mobile banking channels.

5. Do senior citizens receive a higher interest rate on fixed deposits?

Answer:

Yes. Senior persons are given an extra interest rate of 0.50% on FD.



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