Kotak Mahindra Bank Fixed Deposit (FD) Rates

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08 min read

Investment in a fixed deposit scheme is often considered safer as compared to investing in other options, such as shares or money market instruments. Fixed deposit schemes allow people to invest money for a predetermined period of time post which a fixed rate of returns has to be paid. Kotak Mahindra Bank’s fixed deposit scheme offers great returns at the end of tenure. Let us explore the FD schemes offered by Kotak Mahindra Bank:

Latest Update

RBI has announced a new rule applicable to unclaimed, matured FD accounts. That is the funds in an unclaimed, matured FD account will attract an interest rate as applicable to the savings account or the contracted rate of the matured FD, whichever is lower.

Kotak Mahindra Bank Fixed Deposit Interest Rates 2021

Note that the FD interest rates provided in the table below are applicable to deposits below Rs.2 crore and are effective from 5 October 2020.

Investment PeriodFD Rates for Regular Customers (% p.a.)*FD Rates for Senior Citizens (% p.a.)*
7 days to 14 days2.503.00
15 days to 30 days2.503.00
31 days to 45 days3.003.50
46 days to 90 days3.003.50
91 days to 120 days3.904.40
121 days to 179 days3.904.40
180 days4.505.00
181 days to 269 days4.505.00
270 days4.505.00
271 days to 363 days4.505.00
364 days4.505.00
365 days to 389 days4.605.10
390 days, i.e. 12 months 25 days5.005.50
391 days to less than 23 months5.005.50
23 months5.105.60
23 months 1 day to less than 2 years 5.105.60
2 years to less than 3 years4.905.40
3 years to less than 4 years4.905.40
4 years to less than 5 years4.755.25
5 years to 10 years4.505.00

*Rates are subject to change from time to time. Please consult the bank for more information.

Types of FD Schemes Offered by Kotak Mahindra Bank

Kotak Mahindra Bank offers several types of FD accounts to its customers.

  • Regular Fixed Deposit Scheme: This fixed deposit scheme is open for everyone who satisfies the eligibility criteria, except for senior citizens. A set of interest rates are defined for regular customers who deposit money in this account.
  • Senior Citizen Fixed Deposit Scheme: This FD scheme is dedicated to senior citizens only. An account under this scheme offers 0.5% higher interest rate as compared to the ones regular customers get. You must submit age proof while opening the account to get the benefits of this scheme.
  • Tax Saving Fixed Deposit Scheme: This scheme allows customers to get tax benefits under Section 80C in addition to offering interest component and capital protection. However, the customers can seldom choose the deposit tenure as the minimum lock-in period under this scheme is five years.

Kotak Mahindra Bank Fixed Deposit Special Features and Benefits

  • Kotak Mahindra Bank offers attractive interest rates on all FD schemes.
  • Deposit a sum as low as Rs 5,000 to open an FD account with the bank.
  • Choose the tenure suitable for you that can be anything in the range of 7 days and 10 years.
  • Flexibility to choose interest payment intervals, i.e. monthly, quarterly or on maturity.
  • Open fixed deposit accounts online through net banking and mobile banking channels.
  • Enjoy high liquidity as partial and premature withdrawal of fixed deposit is allowed.
  • Nomination facility is available to any family member, even spouse.
  • Option to avail overdraft facility against the FD amount.

Eligibility Criteria for Kotak Mahindra Bank FD

You must fulfil one of the following eligibility criteria to open an FD account with the bank:

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

Documents Required

  • 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 a cheque
    • Certificate/ID card issued by post office

Tax Benefits on Kotak Mahindra Bank FDs

Kotak Mahindra Bank offers a tax saving FD scheme that comes with a deposit tenure of 5 to 10 years. Individuals and HUFs are eligible to open this account and get the benefits of the scheme. You can deposit a sum in the range of Rs 100 to Rs 1.5 lakh in this account. It is important to note that in the case of fixed deposits, the tax levied is dependent on the tax bracket you fall into irrespective of the interest rate or other factors. If the interest earned on your fixed deposit is more than Rs 40,000 during the financial year, the bank deducts tax at source @ 10%. This rate has been reduced to 7.5% due to COVID-19 pandemic during the period from May 2020 to March 2021.

Mutual fund or FD?

Tax-saving or ELSS mutual funds have the potential to provide much higher returns than fixed deposits, particularly during a bullish run in the markets. ELSS funds come with a lock-in period of only three years, while it is five years for tax-saver FDs. ELSS funds can provide returns in the range of 12% to 14%, while the interest on FDs is always restricted.

Investing in ELSS provides investors with the dual benefit of tax deductions and wealth creation over time. The equity exposure of these mutual funds gives ELSS an edge over the other tax-saving investments. If you are finding it difficult to pick the best-performing ELSS funds on your own, then invest in the funds handpicked by our in-house experts. You can invest in a hassle-free and paperless manner with ClearTax, and the entire process takes no more than five minutes. Also, you get your investment proof instantly. Furthermore, we prefill your personal information and tax-saving investment details at the time of filing ITR with us.

FD Interest Rate Calculator

Visit our easy-to-use FD calculator page to predict the returns you may receive upon putting your money in a fixed deposit account.

Frequently Asked Questions

Are there different options available under the interest payout interval?

Yes. Kotak Mahindra Bank offers four options under interest payout interval to choose from, i.e. cumulative, quarterly, monthly, and on maturity. 

I am an NRI. Can I open an FD account with the bank?

Yes. Non-Resident Indians can open FD accounts with the bank. There are separate account schemes available for NRIs, such as NRO, NRE, and FCNR accounts, based on the currency in which the deposit is made and the currency in which the maturity proceedings are transferred.

Is it necessary to maintain a savings/current account with the bank to open an FD account?

As per the bank’s regulations, it is necessary to have a savings/current account with the bank to open an FD account. This is to acknowledge that the customer has had a good relationship with the bank in the past and can open the account online through net banking or mobile banking channels.

Does the bank guarantee returns on this product?

Yes. The bank promotes the product as an assured return yielding product.

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