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Save Upto Rs. 45,000 Taxes by Investing in ELSS

Investment in a fixed deposit scheme is often considered safer as compared to investing in other options like shares or money markets. Fixed deposit schemes allow people to invest money for a stated period of time post which a fixed rate has to be paid until the end of the deposit period. Kotak Mahindra Bank’s fixed deposit scheme offers great returns at the end of tenure.  

Kotak Bank FD Interest Rates for different Investment Periods

 

Investment Period FD rates for Regular deposits FD rates for Senior Citizen
7 days to 14 days 3.50% 4.00%
15 days to 30 days 4.00% 4.50%
31 days to 45 days 5.00% 5.50%
46 days to 90 days 5.40% 5.90%
91 days to 120 days 5.60% 6.10%
121 days to 179 days 6.00% 6.50%
180 days 6.60% 7.10%
181 days to 364 days 6.70% 7.20%
365 days to 389 days 6.80% 7.30%
390 days 6.85% 7.35%
391 days to 23 months 6.80% 7.30%
23 months 1 day to 2 years 364 days 6.70% 7.20%
3 years to 4 years 364 days 6.50% 7.00%
5 years to 10 years 6.25% 6.75%

The above rates are applicable for deposits of below Rs. 1 crore.

Kotak Bank FD Interest Rates

  • Very short time deposits for a period of 7-30 days get an interest rate of 3.5 to 4%
  • Deposits with a period of 31-45 days fetch an interest of 5% and with a period of 46-90 days, 0.4% more
  • 5.6% rate of interest is offered for a deposit period of 9-179 days and a period of 180 days earns an interest of 6.4% per annum
  • For deposit tenure of 181-269 days and 270 days the rate offered is 6.4% per annum and the highest rate of 6.6% is earned on deposit of 364 days and 365-390 days
  • Deposits between 391 to less than 2 years earn an interest of 6.5%
  • Rate earned on deposit tenure of 3 to 4 years is 6.25%. Same interest applies for a deposit tenure 4-5 years
  • Senior citizens have the opportunity to earn 0.5% more interest than regular rates, applicable for a particular deposit period.

Kotak Bank fixed deposit -Special features

  • Kotak Mahindra bank offers attractive interest rates on all FD schemes
  • Deposit of as low as Rs 10,000 can be made, for new customers, it starts from Rs 25,000
  • The booking period is from 7-10 days
  • You have the flexibility to receive interest monthly, quarterly or to wait until the end of the maturity period
  • Fixed deposits can be booked online through their net banking facility
  • Partial and premature withdrawal of fixed deposit is allowed
  • Nomination facility is available to any family member or spouse can be nominated to receive the final amount

Kotak Bank fixed deposit: Is it the best way to save?

Whenever there are excess funds involved people think of investing in fixed deposit schemes. Kotak Mahindra bank offers attractive rates over various deposit periods with the flexibility of earning interest monthly, quarterly or at the end of maturity. However, it is advisable to explore saving options apart from fixed deposits which can earn higher returns.

One such option is investing in mutual funds. The advantage of investing in mutual funds over fixed deposits primarily is that they are managed by professional fund managers who have a good sense of market trends and they make sure you get the highest returns. This mitigates the risk that mutual funds come with to a large extent. The return rates for fixed deposits are fixed for a particular deposit tenure. However, in case of mutual funds, you can get almost 2x more returns in a positive market.

Kotak Mahindra Bank: Eligibility Criteria

The following groups and individuals are eligible to open an FD account with Kotak Mahindra Bank.

  • Individuals
  • Joint accounts for 2 or more individuals
  • Partnership firms
  • Trusts
  • Minors
  • Blind persons
  • Illiterate persons
  • Joint Hindu families
  • Limited companies and partnership firms
  • Municipalities and panchayats
  • Charitable, religious, and educational institutions
  • Associations, societies, clubs etc.
  • Sole proprietary concerns

Kotak Mahindra Bank FD: Premature Withdrawal

Kotak Mahindra bank allows premature withdrawal on their fixed deposits. No penal interests are charged when foreclosing your FD. When a customer closes his account prematurely, he or she will not pay interest according to the rate in the deposit contract but the term deposit that is remained with the bank.

Tax benefits on Kotak Mahindra Bank FD

Kotak Mahindra bank has a tax saving option with deposit tenure of 5-10 years. Individuals, minors, and HUFs are eligible for this. Investments ranging from Rs 100 to 1.5 Lakh can be made.

However, it is important to note here that in case of fixed deposits, the tax levied is dependent on the tax bracket you fall into irrespective of FD tenure. If the interest earned on your fixed deposit is more than Rs 10,000, TDS deduction of 10% would be deducted by the bank.

Mutual funds have an edge over fixed deposit in this regards as tax payable on mutual funds depends on the category. For example, long-term equity funds (more than 1 year) are tax exempt. They offer a higher capital appreciation potential and a smaller lock-in period of 3 years. Hence we can say, investing in Mutual funds is a viable tax saving option.

Documents required to open Kotak Mahindra FD account

Identity proof

  • Passport
  • PAN card
  • Voter ID card
  • Driving license
  • Government ID card
  • Photo ration card
  • Senior citizen ID card

Address proof

  • Passport
  • Telephone bill
  • Electricity bill
  • Bank Statement with Cheque
  • Certificate/ ID card issued by Post office

Types of Fixed Deposit offered by Kotak Mahindra Bank

  • Fixed/Short Term Deposit– A standard FD scheme offered by Kotak Mahindra wherein customers are paid fixed interest amounts at regular intervals
  • Quarterly/Monthly Term Deposit– In this scheme, customers can choose to receive interest payments at monthly or quarterly intervals
  • You can also choose to receive payment at the end of maturity period