Kotak Mahindra Bank Savings Account Interest Rate & Minimum Balance 2024

Incorporated in 1985, Kotak Mahindra Bank serves as one of the most trusted financial institutions in India. The diverse range of banking products of Kotak Bank is highly popular for catering to varying financial requirements of its customers. Among these popular bank offerings are their savings accounts featuring attractive interest rates and minimal balance requirements. 

In this comprehensive guide, we will walk you through the latest Kotak Mahindra Bank saving account interest rate while highlighting all the relevant details that you need to know. 

Kotak Mahindra Bank Savings Account

The Kotak Mahindra Bank savings account enables individuals to park their idle funds or cash and earn high-yielding interest on them. The bank offers different types of such accounts, each with personalised benefits and a streamlined account opening process. These savings accounts offer high-interest rates, which are comparable to other bank’s savings accounts. 

Types of Savings Account in Kotak Mahindra Bank

Here are some savings account options that you can consider while applying for the high-yielding Kotak Mahindra Bank saving account interest rate. 

Edge Savings Account

Edge Savings Account is the regular savings account offered by Kotak Mahindra Bank. This account can be opened by any customer of the bank, be it resident or non-resident. It comes with free access to all domestic VISA ATMs and an instant NEFT transaction facility. 

ActivMoney Savings Account 

Featuring an auto sweep facility, the ActivMoney Savings Account is a combination of high-interest rates of fixed deposit and the flexibility of a regular savings account. Individuals can link their fixed deposit account with this account, facilitating the automatic transfer of funds for exceeding a predetermined threshold to earn high interest.

Everyday Savings Account

The Kotak Everyday Savings Account is popular among its customers for offering incentives and rewards every month upon achieving transaction milestones. Some individuals choose this account to avail the special offers that they receive from the bank on their birthdays and anniversaries. 

Pro Savings Account 

Pro Savings Account is another type of savings account with premium banking facilities offered by Kotak Mahindra Bank. Besides a Kotak Mahindra Bank saving account interest rate of 3.50%, it comes with a Platinum International Debit Card for the use of account holders, allowing free payments and easy access to funds. 

Classic Savings Account 

A standout feature of this savings account, setting it apart from others, is its free-demand draft facility. This savings account is available for residents, Hindu Undivided Families (HUFs), and foreign residents.

Sanman Savings Account

Designed for customers from rural sections of India, the Sanman Savings Account features a quarterly minimum balance requirement and low maintenance fees. This account also allows free cash withdrawals at all Kotak and domestic VISA ATMs. 

Sankalp Savings Account

This is another type of savings account, catering financial needs of customers from rural sections of India. By choosing Kotak Sankalp Savings Account, you can avail preferential treatment in case of gold, two-wheeler and tractor loans. However, this scheme is only available in selected branches of Kotak Bank across India. 

Ace Savings Account 

This account comes with a Kotak Mahindra Bank saving account interest rate of 4% on all deposits. It also offers additional benefits such as free outstation cheque collection, cash withdrawals, fund transfer and an online net banking facility. 

Nova Savings Account 

Nova Savings Account is a special type of Kotak Mahindra Bank savings account, offering customised banking services. At the time of opening this account, the bank issues a Classic Debit Card to all account holders. This account is however only available in rural and semi-urban branches across India. 

BSBDA Savings Account 

Kotak Mahindra Bank provides BSBDA or Basic Savings Bank Deposit Account, aligning with the initiative of the Government of India and RBI. This account is designed for residents from economically weaker sections of India, who are unable to maintain a regular minimum balance in their bank account. 

811 Digital Savings Account

The 811 Digital Savings Account of Kotak Mahindra Bank is India’s 1st savings account with a zero-contact and digitalised account opening process. To operate this account, there is no need for the account holders to maintain a minimum balance. 

811 Edge Digital Savings Account

The Kotak 811 Edge Digital Savings Account is another variant of digital savings accounts introduced by the bank. Unlike the other, it comes with a minimum balance limit of Rs.10,000 and a Platinum Debit Card. 

Kotak Mahindra Bank Savings Account Interest Rate 

While Kotak Mahindra Bank provides various types of savings accounts, they share the same interest rate, except for the ActivMoney account. Upon depositing more than Rs.25,000 into the ActivMoney savings account, the bank offers account holders an interest rate of 7%. 

Take a look at the following table to find out the latest interest rates applicable to other Kotak Mahindra Bank savings accounts:

Kotak Mahindra Bank Savings Account Interest Rate for Senior Citizens

By depositing funds in a Kotak Bank savings account, senior citizens can enjoy interest rates higher than the regular rates. This is because Kotak Mahindra Bank offers an appealing interest rate of 4% per annum to individuals who are above 60 years of age. 

Moreover, these individuals can opt for the ActivMoney facility, which comes with an auto sweep-in option and an interest rate of up to 7%. 

Kotak Mahindra Bank Savings Account Minimum Balance 

Let us take a look at the table for details on minimum balance requirements for different types of Kotak Mahindra Bank savings account:

Kotak Mahindra Bank Savings Account Maximum Balance

There is no maximum balance limit that you need to maintain in a Kotak Mahindra Bank savings account. However, investors must remain aware of the deposit limits and ensure all the account activities are aligned with Income Tax regulations. All deposits of more than Rs.10,00,000 made in these accounts in a financial year are subject to taxation as per the Income Tax Act, 1961. 

Penalty for Non-Maintenance of Minimum Balance in Kotak Mahindra Savings Account 

The following is the penalty applicable to account holders for non-maintenance of Kotak Mahindra Bank saving account minimum balance. 

Kotak Mahindra Bank Saving Account Charges 

In addition to the penalty for non-maintenance of the minimum balance, the following are the other charges applicable to a Kotak Mahindra Bank savings account. 

Transaction Limit in Kotak Mahindra Bank Savings Account

Here are the transaction limit or the cash deposit/withdrawal limit applicable to different Kotak Mahindra Bank savings accounts that you need to know:

How to Open a Savings Account in Kotak Mahindra Bank? 

You can open a savings account with Kotak Mahindra Bank through either online or offline modes. Let’s find out how. 

• Online 

Here is a step-by-step guide on how to open a savings account and avail the attractive Kotak Mahindra Bank saving account interest rate online: 

Step 1: Visit the official website of Kotak Mahindra Bank.

Step 2: Navigate to the ‘Savings Account’ section under the ‘Accounts and Deposits’ tab from the main menu. 

Step 3: Choose the type of savings account you want to open. 

Step 4: Go through all the terms and conditions associated with your desired savings account. 

Step 5: Click on the ‘Apply Now’ option. 

Step 6: Enter the required details such as your particulars and contact information. 

Step 7: Click on the ‘Apply’ tab. 

Step 8: An account opening application form will be displayed on the screen. Fill it out carefully. 

Step 9: Attach the necessary KYC documents and click on ‘Upload’. 

Your Kotak Mahindra Bank savings account will open in no time. 

• Offline 

Given below is a stepwise process you need to follow with due diligence to open a savings account in Kotak Mahindra Bank offline:

Step 1: Visit the nearest branch of Kotak Mahindra Bank along with your required KYC documents. 

Step 2: Obtain a savings account opening application form from a bank representative. 

Step 3: Fill out the application form carefully and attach the documents with it. 

Step 4: Deposit the minimum balance amount at the cash counter. 

The bank representative will verify your documents and application form. Upon successful verification, the bank will notify you and issue you a debit card. 

Documents Required for Opening Savings Account in Kotak Mahindra Bank

• Requirements for Individuals 
  • Identity proof of the applicant (driving license, passport, voter's ID, Aadhaar card) 
  • Address proof of the applicant (utility bill, bank statement, bank account passbook) 
  • Signature proof of the applicant (PAN card) 
  • Form 16 in case of unavailability of the PAN details 
  • Birth Certificate in case of applicant is a minor 
  • Recent passport-size photographs of the applicant 
• Requirements for Foundations and Trusts 
  • Identity proof of the trustees, beneficiaries, settlors and those holding power of attorney, founders, managers or directors 
  • Address proof of the trustees, beneficiaries, settlors and those holding power of attorney, founders, managers or directors 
  • Power of attorney 
  • Telephone bill 
  • Resolution of the managing body of the trust or foundation

How to Close Kotak Mahindra Bank Savings Account? 

Here’s how you can close your Kotak Mahindra Bank savings account:

Step 1: Visit the nearest branch of Kotak Mahindra Bank. 

Step 2: Consult a bank representative and obtain an account closure form. You can also choose to download this form from the bank’s official website and print it out. 

Step 3: Fill out the form carefully. 

Step 4: Attach the required KYC documents with the form and submit it to the bank representative. 

Step 5: Hand over the debit card, passbook and the chequebook linked to your savings account. 

Features of Kotak Mahindra Bank Savings Account 

The Kotak Mahindra Bank savings account comes with a few salient features that you need to know before parking your funds. These are as follows:

• Kotak Mahindra Bank saving account interest rate is not subject to market volatility and risks. 
• Account holders can easily withdraw their money from the savings account through the bank’s wide network of ATMs spread across the country. 
• There is no upper cap on the amount of money you can deposit in a savings bank account of Kotak Mahindra Bank. 
• In the case of minors, Kotak Mahindra Bank deposits an equal amount as to the initial deposit made in the account. 

Benefits of Kotak Mahindra Bank Savings Account 

Here is a list of benefits that you can avail by opening a Kotak Mahindra Bank savings account. 

• The opening of Kotak Mahindra Bank savings account involves account holders undergoing an innovative video KYC service. This facility eliminates the hassle of the documentation and verification process. 
• Account holders can apply for a credit card in Kotak Mahindra Bank without requiring them to specify the CIBIL score. 
• Along with assured interest, the Kotak Mahindra Bank savings account comes with net banking and mobile banking facilities. 
• By parking your idle funds in a savings account of Kotak Mahindra Bank, you can obtain a debit and credit card free of cost. 
• The savings account of the bank enables account holders to set up a utility bill system, allowing them to pay their bills automatically on a timely basis. 

While a safe option, it is advisable to evaluate the overall attractiveness of Kotak Mahindra Bank saving account interest rate by comparing it with rates offered by other banks. Furthermore, it is important to note that the interest rates are subject to change over time. Hence, make sure to verify the rates and other associated terms and conditions before prioritising any savings account offered by Kotak Mahindra Bank. 

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