Kotak Fixed Deposit

Kotak Mahindra Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on Kotak Mahindra Bank FDs is higher than their savings account. One can invest in Kotak Mahindra Bank FDs through both online and offline modes with a minimum investment of INR 10,000. This article covers Kotak Mahindra Bank FD, its features and interest rates in detail.

Kotak Bank Fixed deposit schemes

Following are the types of Kotak Bank fixed deposit schemes:

• Regular Fixed Deposit
• Tax Saving Fixed Deposit
• Senior Citizen Fixed Deposit
• Ace Fixed Deposit

Kotak Bank Regular Fixed Deposit

The regular fixed deposit account helps the depositor to earn higher returns when compared to holding the cash idle in the savings account.

• Maturity periods for these FD schemes range between 7 days and ten years.
• These FD schemes provide a sweep-in facility to maintain liquidity.
• These FD schemes also permit premature closure of the account and partial withdrawals.
• Also, the regular fixed deposit savings scheme provides an overdraft facility.
• The deposit can opt for either cumulative or non-cumulative (monthly or quarterly) interest payments.
• Resident Indian citizens, sole proprietorship firms, and HUFs can open a regular fixed deposit account.

Kotak Bank Tax Saving Fixed Deposit

Kotak Mahindra Tax Saving Fixed Deposit scheme investments quality for a tax deduction. Under Section 80 C of the Income Tax Act, depositors can claim a tax deduction for investments up to INR 1.5 lakhs.

• The fixed deposit scheme has a lock-in period of 5 years. Hence, the scheme doesn’t allow premature withdrawals.
• The minimum deposit for this Kotak FD is INR 100.
• Depositors cannot avail loan against deposits made in a Tax Saving FD account.
• One can choose to receive interest every quarter or get it compounded till maturity.
• The tax saving FD is available for senior citizens as well.
• Resident Indian citizens, minors, senior citizens, and HUFs can open tax-saving fixed deposit accounts.

Kotak Bank Senior Citizen Fixed Deposit

The Senior Citizen FD is specially designed for senior citizens of society.

• This Kotak FD offers preferential interest rates to senior citizen depositors.
• The tenure of the deposit account varies between 7 days to 10 years.
• The minimum deposit amount is INR 5,000.
• The savings scheme permits premature withdrawals and partial withdrawals.
• Depositors can opt to receive interest monthly, quarterly or get it compounded till maturity.

Kotak Bank ACE Fixed Deposit

With Kotak ACE, investors can earn significant returns. The scheme invests interest from the fixed deposit in equity mutual funds through SIPs.

• Nomination Facility: Available
• Overdraft Facility: Available
• Premature Encashment: Available but attracts a penalty.
• Earning from the equity investments are tax-free if redeemed after one year of investment.

Key Features of Kotak Mahindra Bank Fixed Deposit Schemes

• Tenure: The tenure of a Kotak Bank FD ranges from seven days to ten years. One cannot change the tenure of their Kotak Bank FD once it has commenced.
• Minimum and maximum investment: The minimum investment in Kotak Bank FD is INR 10,000. However, there is no limit on the maximum amount of investment in Kotak Bank FD.
• Kotak Mahindra Bank FD rates: Kotak Bank FD rates range between 2.5% and 5.3% for regular citizens and between 3% and 5.8% for senior citizens. Moreover, Kotak Bank offers an additional 0.5% interest to senior citizens on their FDs. Kotak Bank pays interest monthly, quarterly or annually or at maturity as per the choice of the investor.
• Premature withdrawal: All Kotak Bank FDs can be withdrawn prematurely except for the tax-saving FD. For all deposits below the tenure of 181 days, if withdrawn prematurely, there is no penalty. However, all deposits having a tenure above 181 days have a penalty of 0.5% on the contracted interest rate.
• Loan against FD: Kotak Bank offers loans against their FDs. Investors can get up to 85% of the deposit amount as a loan against their Kotak Bank FD investment. Also, the interest rate for the loan will be in the range of 3.5-6.3%. Moreover, the tenure of the loan is limited to the tenure of the Kotak Bank FD.
• Nomination and auto-renewal facility: Kotak Bank FD investors can nominate beneficiaries for their FDs and also opt for auto-renewal of FD.
• Safety: The Deposit Insurance Scheme of RBI covers all Kotak Bank deposits. The scheme covers all Kotak Mahindra Bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in a Kotak Bank FD once it has commenced. However, they can open a fresh Kotak Bank FD with the new amount.

How to open a Kotak Bank FD deposit account?

One can open a Kotak Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open a Kotak Bank FD account through internet banking:

• Login to the Kotak Bank NetBanking account.
• Under the ‘Investment’ section, select the ‘Open a Fixed/ Recurring Deposit’ option.
• Fill the account opening form with all the necessary details and provide maturity and payment instructions. Also, fill in the nominee details.
• Verify the details and click on ‘Submit. Upon successful account opening, the investor will be notified.

Through Mobile App

Kotak Bank App

The following steps will guide in opening an FD account through Kotak Bank Mobile App:

• Download the Kotak Bank App.
• Under the ‘Investment’ section, select the ‘Open a Fixed/ Recurring Deposit’ option.
• Fill the account opening form with all the necessary details and provide maturity and payment instructions. Also, fill in the nominee details.
• Verify the details and click on ‘Submit. Upon successful account opening, the investor will be notified.

Offline Kotak Bank FD Opening

To open a Kotak Bank FD account offline, one has to visit the nearest Kotak Bank branch. Fill the Kotak Bank FD application form and submit all the necessary documents along with the deposit amount. On successfully processing the application, Kotak Bank will provide an FD receipt.

Documents required to Open a Kotak Bank FD

The documents required to open an FD in Kotak Bank are:

• FD account opening form
• Four passport size photographs
• Identity Proof as per KYC norms. (PAN Card, Aadhaar Card, Voter ID Card, Passport, Driving License)
• Address proof as per KYC norms. (PAN Card, Aadhaar Card, Voter ID Card, Passport, Driving License)
• Signature proof (PAN Card, Passport, Driving License)
• Pan Card or a declaration in Form No. 60 or 61 of the Income Tax Act
• Senior Citizen ID Card (for senior citizens)
• Any other documents as applicable for partnership, proprietorship, company, HUF, association or institution.

Eligibility to Open a Kotak Bank FD

Only eligible investors can invest in Kotak Bank FD. The eligibility criteria to invest in Kotak Bank FD is:

• Indian National
• NRIs and PIOs (Non-Resident Indians and Persons of Indian Origin)
• HUFs
• Senior Citizens and Minors

Does Kotak Mahindra Bank offer Recurring Deposits?

Kotak Mahindra Bank offers recurring deposits to its depositors. Kotak Mahindra Bank recurring deposits have a minimum tenure of six months and a maximum tenure of 10 years. Depositors can open an RD account either by going to the Kotak Mahindra Bank branch or online using internet banking. The minimum investment in Kotak Mahindra Bank RD is INR 100, and the maximum investment is INR 25,000. The interest rate for regular citizens on Kotak Mahindra Bank RDs is in the range of 4.4% to 5.3%, and for senior citizens, it is in the range of 4.9% to 5.8%.

Is FD interest taxable?

Only investment in Kotak Mahindra Bank Tax Saving FD qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other Kotak Mahindra Bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from Kotak Mahindra Bank FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income from Kotak Mahindra Bank FD exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to the Kotak Mahindra Bank, then the TDS rate will be 20%.

In how many years will FD double in Kotak Bank?

To know in how many years Kotak Bank FD will double, we can follow the 72 rule. We have to divide 72 by the interest rate, and the result will be the number of years Kotak Bank FD will double. For example, for a 5 to 10 years tenure, the Kotak Mahindra Bank FD interest rate for senior citizens is 5.8%. An investor can double the investment amount by investing for this tenure in Kotak Bank FD in 12.41 years (72/5.8).

Frequently Asked Questions