Kotak Mahindra Bank Fixed Deposit

Kotak Mahindra Bank Ltd is among the most trusted financial institutions in the Indian banking sector. It has been an eventful journey for Kotak Mahindra Bank from 1985. Providing timely business finance to the trading community was the original idea behind the formation of Kotak Mahindra Finance Ltd. It forayed into various sectors and finally became a commercial bank in 2003. The bank believes in using innovative technology to provide the best service to its clients.

Why Kotak Mahindra Bank Fixed Deposits?

Kotak Mahindra Bank Ltd has a reputation for financing various business sectors. Apart from business and retail loans, Kotak Mahindra Bank provides a range of deposit options. With the takeover of ING Vysya Bank, Kotak Mahindra Bank strengthened its position in the banking industry. Kotak Mahindra Bank is one of the first banks in the country to offer attractive rates of interest on savings and other term deposits. The bank provides innovative solutions like the facility to open Fixed Deposits (FDs) online. These facilities make it the favourite of the younger generation.   

Kotak Mahindra Bank Fixed Deposits - Features and Benefits

The Fixed Deposits at Kotak Mahindra are loaded with the following features and advantages:

  • Extensive range of Fixed Deposit options
  • Open FD with amounts as low as 5,000
  • An exciting range of recurring deposits
  • Flexible tenures ranging from 7 days to 10 years
  • Monthly and quarterly interest payout options available
  • Short term deposits available
  • Facility to opt for reinvestment of interest
  • Option to book FD online
  • Premature payment available
  • Nomination facility available
  • Liquidity options with sweep-in facility
  • Loan and overdraft available against FD
  • Tax-saving deposit
  • Senior citizens get the benefit of additional rates

Kotak Mahindra Bank Fixed Deposits - Rate of Interest

Interest rate table for Domestic/NRO/NRE deposits - Premature withdrawal allowed

  • Deposits for amounts less than 2 Crores - with effect from 19.07.2019 (Rates in % per annum)
Deposit Tenure Regular Deposit Senior Citizen Deposit

7 to 14 days

3.50

4.00

15 to 30 days

4.00

4.50

31 to 45 days

5.00

5.50

46 to 90 days

5.50

6.00

91 to 120 days

6.00

6.50

121 to 179 days

6.25

6.75

180 days

6.40

6.90

181 to 269 days

6.50

7.00

270 days

6.50

7.00

271 to 363 days

6.75

7.25

364 days

7.00

7.50

365 to 389 days

7.00

7.50

390 days

7.00

7.50

391 days to less than 23 months

7.00

7.50

23 months

7.00

7.50

23 months one day to less than 2 years

7.00

7.50

2 years to less than 3 years

7.00

7.50

3 years to less than 4 years

6.90

7.40

4 years to less than 5 years

6.75

7.25

5 years to 10 years

6.50

7.00

  • Deposits for amounts 2 Crores and above - with effect from 01.08.2019 (Rates in % per annum)
Maturity Period 2 Crores to less than 5 Crores 5 Crores to less than 10 Crores 10 Crores to less than 25 Crores 25 Crores and above

7 to 14 days

4.50

4.25

4.25

4.25

15 to 30 days

4.50

4.50

4.50

4.50

31 to 45 days

5.50

5.50

5.50

5.50

46 to 60 days

6.00

5.70

5.70

5.70

61 to 90 days

6.25

5.75

5.75

5.75

91 to 120 days

6.35

5.90

5.90

5.90

121 to 179 days

6.40

6.05

6.05

6.05

180 days

6.50

6.25

6.25

6.25

181 to 270 days

6.75

6.35

6.35

6.35

271 to 279 days

5.30

5.10

5.10

5.10

280 days to less than 12 months

6.90

6.50

6.50

6.50

12 months to less than 15 months

7.00

6.50

6.50

6.50

15 months to less than 18 months

7.00

6.40

6.40

6.40

18 months to less than 2 years

7.00

6.40

6.40

6.40

2 years to less than 3 years

7.00

6.40

6.40

6.40

3 years to less than 4 years

6.90

6.25

6.25

6.25

4 years to less than 5 years

6.75

6.25

6.25

6.25

5 years to 7 years

6.50

6.00

6.00

6.00

Important points to note

  • Senior citizen benefit is not available to NRO/NRE Fixed Deposits
  • No interest is payable on NRE deposits for periods of less than one year
  • Simple interest calculation applies for deposits with tenure up to 180 days

Interest Rate Table for Domestic/NRO/NRE Fixed Deposits where premature withdrawal is not permitted - with effect from 01.08.2019 (Rates in % per annum)

Tenure of Deposit 2 Crores to less than 5 Crores 5 Crores to less than 10 Crores 10 Crores to less than 25 Crores 25 Crores and above

91 to 120 days

**

6.00

6.00

6.00

121 to 179 days

**

6.15

6.15

6.15

180 days

**

6.35

6.35

6.35

181 to 270 days

6.85

6.45

6.45

6.45

271 to 279 days

5.40

5.20

5.20

5.20

280 days to less than 12 months

7.00

6.60

6.60

6.60

12 months to less than 15 months

7.10

6.60

6.60

6.60

15 months to less than 18 months

7.10

6.60

6.60

6.60

18 months to less than 2 years

7.10

6.50

6.50

6.50

2 years to less than 3 years

7.10

6.50

6.50

6.50

  • No premature payment on these Fixed Deposits
  • The sweep-in facility is not available on this deposit
  • Auto-renewal option is not available
  • No monthly interest payout options
  • No OD or loan against these Fixed Deposits booked under "No Premature Withdrawal" product

Interest rates on Recurring Deposits - with effect from 19.07.2019 (Rates in % per annum)

Deposit Tenure Regular RD Senior Citizen RD

6 months

6.50

7.00

9 months

6.75

7.25

12 months

7.00

7.50

15 months

7.00

7.50

18 months

7.00

7.50

21 months

7.00

7.50

24 months

7.00

7.50

27 months

7.00

7.50

30 months

7.00

7.50

33 months

7.00

7.50

3 years to less than 4 years

6.90

7.40

4 years to less than 5 years

6.75

7.25

5 years to 10 years

6.50

7.00

FCNR (B) Deposits - Rate of Interest

Tenure < USD 0.5m USD 0.5m and above GBP EUR JPY AUD SGD

1 year to < 2 years

2.75

2.40

1.17

0.00

0.00

2.00

2.00

2 years to < 3 years

2.65

2.10

1.07

0.00

0.00

1.50

2.00

3 years to < 4 years

2.50

1.75

0.81

**

**

**

**

4 years to < 5 years

2.10

1.75

**

**

**

**

**

5 years

1.75

1.50

**

**

**

**

**

Kotak Mahindra Bank Fixed Deposits - Types of Deposits

Kotak Mahindra Bank has exciting deposit products on offer ranging from Fixed Deposits to recurring deposits. The bank also offers a tax-saving deposit product.

Fixed Deposit
Product Attractive deposit rates with a range of deposit tenures to suit every requirement.

Minimum deposit amount

5,000

Deposit tenure

7 days to 10 years

Interest payout options

  • Monthly, quarterly, and reinvestment options
  • Short-term options available

Benefits

  • Facility to book FD online
  • Nomination facility available
  • Liquidity options with sweep-in facility
  • Flexible interest payout options

Premature withdrawal

Allowed

Loans or overdraft

Available

Taxation

As per IT rules

Recurring Deposit

Product

Save small amounts monthly to build up a grand corpus

Deposit tenure

  • Minimum period: 3 months
  • Maximum tenure: 10 years

Quantum of deposit

  • Minimum investment: 100
  • Maximum instalment: 25,000 for tenures up to 10 years
  • Maximum instalment: 1 Lakh for tenure up to 36 months

Eligibility

Any individual resident including minors can open RD A/c

Premature payment

Allowed

Partial withdrawal

Not allowed

Delayed payment

Levy of penal interest after a grace period

Loans

No loans

Tax Saving Fixed Deposit

Product

Tax saving deposit enables you to avail concessions under Sec 80C of IT Act

Eligibility

Individuals and HUF having PAN Card

Quantum of deposit

The minimum investment is 100, and the maximum deposit is 1.50 Lakhs.

Deposit tenure

5 years

Taxation

TDS as applicable

Premature payment

Not allowed

Loans

Not allowed

NRE Fixed Deposit

Target

Non-resident Indians

Eligibility

  • NRIs and PIOs
  • Seafarers of Indian nationality employed by overseas shipping corporations.
  • Students pursuing higher studies abroad
  • Indian diplomats posted overseas

Quantum of deposit

The minimum investment is 50,000

Tenure of deposit

The minimum deposit tenure is 1-year with the maximum period of 10 years

Taxation

Interest earned on NRE deposit is tax-free

Premature payment

Allowed

Repatriable

Principal and interest repatriable

Non-Resident Ordinary Fixed Deposit

Eligibility

Same as that for NRE accounts

Quantum of deposit

Minimum booking amount is 50,000

Tenure

The minimum tenure is 7 days with a maximum of 10 years

Taxation

Interest earned on NRO deposit is taxable

Premature payment

Allowed

Repatriable

As per RBI rules

FCNR (B) Deposit

Eligibility

Same as that of NRE

Currency of deposit

USD, GBP, EUR, JPY, AUD, SGD

Deposit tenure

The minimum deposit tenure is 1-year, and the maximum is 5 years

Taxation

Interest is tax-free

Repatriable

Principal and Interest repatriable

Source of funds

  • Transfer from NRE/FCNR accounts
  • Remittance from abroad

Documents Required for Opening Kotak Mahindra Bank Fixed Deposits

Category Documents required (Copies)

Resident Individuals, Sole proprietorship concerns, HUF

  • Passport
  • Driving license
  • Introduction from Kotak Bank or any other bank
  • One recent photograph

Trusts

  • Trust deed
  • Registration Certificate
  • Resolution of trustees
  • Letter of authority
  • Photographs of members operating the account

Clubs and Associations

  • Bye-laws
  • Resolution
  • Photographs of the members authorised to operate the account.

Partnership firms

  • Partnership deed
  • Letter from partners approving the partners concerned to operate the account.
  • Photographs of the partners

Non-Resident Indians

  • Passport
  • Valid visa or Residence permit
  • Copy of work contract and merchant navy declaration
  • Proof of address
  • PIO Card or OCI Card, if applicable

Procedure to Open Kotak Mahindra Bank Fixed Deposits

Kotak Mahindra Bank offers different ways to open Fixed Deposits. The best way is the online method. Kotak Mahindra Bank offers mobile banking facilities using which customers can open Fixed Deposits online. One can also open Fixed Deposits in Kotak Mahindra Bank by walking into one of their branches and completing the necessary formalities.

How do you open Kotak Mahindra Bank Fixed Deposit online?

The official website of Kotak Mahindra Bank enables customers to open Fixed Deposits online. Kotak Bank customers can use their internet banking or mobile banking credentials to open a Fixed Deposit online. 

Maturity Value Calculator

Kotak Mahindra Bank offers the facility of FD maturity value calculator. This feature enables you to calculate the maturity value of your FD in three simple steps. Enter the principal amount, deposit tenure, and the type of deposit you want to open. The system calculates the maturity value within no time.

Premature Withdrawal - Kotak Mahindra Bank Fixed Deposits

In case of early withdrawal, Kotak Mahindra Bank will pay interest at the lowest rate of the following:

  • The contracted rate less penalty
  • The applicable rate for the actual period the deposit remained with the bank less penalty
  • Penalty for deposit tenure less than 180 days - Nil
  • Penalty for mandates 181 days or more - 0.50%
  • Premature withdrawal of Recurring Deposits
  • No interest is payable if withdrawn within one month. Otherwise, the lower of the following rates will apply:
    • Contracted rate less penalty of 0.50%
    • The applicable rate for the tenure the deposit remained with the bank less penalty of 0.50%

Tax Deduction at Source on Fixed Deposit Interest

The Income Tax rules stipulate that interest earned on Fixed Deposits is taxable at source. Hence, banks and other financial institutions deduct TDS on interest payable on their Fixed Deposits to customers.

  • Kotak Mahindra Bank deducts TDS @10% on interest payable on Fixed Deposits if it exceeds 40,000 in a financial year. Senior citizens get a concession of 10,000. Hence, interest earned up to 50,000 on senior citizen deposits does not attract TDS.
  • Customers can submit Form 15G or 15H to request the bank not to deduct TDS. Under such circumstances, the furnishing of PAN card details is compulsory. Otherwise, the bank can deduct TDS @20%.
  • Apart from resident deposits, interest earned on NRO deposits is also taxable. Banks have to deduct TDS @ 30.90% on interest payable on NRO deposits.
  • Interest earned on NRE and FCNR accounts does not attract tax

Kotak Mahindra Bank Fixed Deposits - Frequently Asked Questions

What is unique about the Sweep-in facility offered by Kotak Mahindra Bank?

The Sweep-in facility enables customers to link their savings or current accounts with their Fixed Deposits. This facility increases the liquidity of the Fixed Deposits, as it allows seamless transfer of funds from the Fixed Deposits to the savings accounts and vice versa depending on the position of the account.

What benefit does the Sweep-in facility offer?

Excess funds in the savings accounts are swept away to create an FD, thereby enabling the customer to earn a better rate of interest. At the same time, the reverse sweep-in or sweep-out facility transfers funds from the FD to the savings account when the customer experiences a shortfall in the savings account.

Is it possible to link multiple Fixed Deposit accounts to a savings account?

Yes, it is possible to link more than one FD to the savings account. However, the converse is not possible. You cannot connect two savings accounts to one FD.

What is the minimum amount of sweep-in from the FD to your savings account?

The exciting feature of this facility is that it allows sweep-in facility from FD to savings for amounts as low as 1.

How does the Tax Saving Fixed Deposit save tax for the individual?

Sec 80C of the IT Act allows individuals to invest in specific Tax saving deposits in banks to avail concessions granted under the Act. The maximum investment is 1.50 Lakhs in a financial year.

Can I avail loan against my tax saving FD?

No, you cannot avail any loan against your tax-saving FD. The scheme does not allow premature payment of the deposit, as well.

Under what circumstances will the bank allow premature payment on Tax-Savings Deposit?

The bank will allow premature payment on Tax Saving Deposit only on the death of the deposit holder. The nominee can place the request for foreclosure of the deposit.

Does interest earned on Tax-Saving Deposit receive an exemption from income tax?

No, the Tax-Saving deposit scheme and TDS on interest are two distinct factors. Interest earned on the Tax-Saving Deposit scheme is also taxable as per the IT Act.

Who qualifies as a senior citizen?

Any resident individual crossing the age of 60 years at the time of opening the FD qualifies for benefits under the senior citizen deposit. This benefit is not available for non-resident senior citizens.

What additional document should senior citizens provide when opening FD account?

Senior citizens should provide proof of their age. The documents that enable you to do so are PAN card, passport, driving licence, pension payment order, and other documents that certify your date of birth.

   

OTP is sent to your mobile number

Enter OTP

Resend OTP