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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:
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.
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 Period||FD Rates for Regular Customers (% p.a.)*||FD Rates for Senior Citizens (% p.a.)*|
|7 days to 14 days||2.50||3.00|
|15 days to 30 days||2.50||3.00|
|31 days to 45 days||3.00||3.50|
|46 days to 90 days||3.00||3.50|
|91 days to 120 days||3.90||4.40|
|121 days to 179 days||3.90||4.40|
|181 days to 269 days||4.50||5.00|
|271 days to 363 days||4.50||5.00|
|365 days to 389 days||4.60||5.10|
|390 days, i.e. 12 months 25 days||5.00||5.50|
|391 days to less than 23 months||5.00||5.50|
|23 months 1 day to less than 2 years||5.10||5.60|
|2 years to less than 3 years||4.90||5.40|
|3 years to less than 4 years||4.90||5.40|
|4 years to less than 5 years||4.75||5.25|
|5 years to 10 years||4.50||5.00|
*Rates are subject to change from time to time. Please consult the bank for more information.
Kotak Mahindra Bank offers several types of FD accounts to its customers.
You must fulfil one of the following eligibility criteria to open an FD account with the bank:
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.
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.
Visit our easy-to-use FD calculator page to predict the returns you may receive upon putting your money in a fixed deposit account.
Yes. Kotak Mahindra Bank offers four options under interest payout interval to choose from, i.e. cumulative, quarterly, monthly, and on maturity.
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.
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.
Yes. The bank promotes the product as an assured return yielding product.