Headquartered in Mumbai, Kotak Mahindra Bank is one of the largest private sector banks in India. Initially, a finance company, Kotak Mahindra Finance Ltd., the company received its license to function as a bank in 2003 with permission received from the Reserve Bank of India (RBI). The bank had a strong presence in India with over 641 branches and 1,159 ATMs spread across the country.
Recently, however, in April 2015, Kotak Mahindra Bank and ING Vysya Bank. Post the takeover, ING Vysya Bank will function under Kotak with a shareholding of 6.5% in the merged entity. ING Vysya Bank as an entity will no longer continue. Synergies arising from the merger including greater reach and a stronger asset base. The Kotak Mahindra Bank as a result of the merger now boasts 1,214 branches across the country.
The bank offers a number of products and services such as Personal Banking, Corporate Banking, SME Banking, NRI Banking and Wealth Management etc. In fact, the bank is known for its highly competent wealth management team in India which provides a wide range of solutions to individuals, businessman, entrepreneurs and employed professionals to better manage their wealth.
With Kotak Mahindra Bank, you can invest in different fixed deposit schemes and get maximum returns on your savings. Investing in fixed deposits encourages you to save more and you get assured returns on your savings. Normally, you are not allowed to withdraw your fixed deposits with a particular bank. However, by giving prior notice to the bank and paying an amount of the penalty fee, you can withdraw your fixed deposits. Kotak Mahindra Bank offers three different types fixed deposits which include Tax Saving Deposits, Regular Term Deposits and Senior Citizen Deposits.
Resident Indians, senior citizens, members of HUF and NRIs are eligible to open their fixed deposit accounts with Kotak Mahindra Bank.
The minimum amount required to open a fixed deposit account with Kotak Mahindra Bank is ₹ 10,000. However, the bank accepts deposits up to ₹ 25 crore and above.
The bank accepts deposits for a minimum period of 7 days and a maximum period of 10 years.
The bank offers attractive rates of interest on your fixed deposits. The bank offers 7.50% as the highest rate of interest for domestic and NRO term deposits. The lowest rate of interest for the same is 4.00%. For NRE term deposits, the highest rate of interest offered by the bank is 7.50% and the lowest rate of interest is 4.00%. For senior citizens, the bank offers 7.75% as the highest rate of interest and 4.50% as the lowest rate of interest. However, the bank’s interest rates are subject to change without giving prior notification to its customers.
Tabular representation of Kotak Bank FD Rates – April 2017
|Kotak Bank FD Rates|
|Tenure||Rates (Below Rs 1 Crore)||Rates (Rs. 1 Crore to Below Rs. 5 Crores)|
|7 days to 14 days||4.00%||6.00%|
|15 days to 30 days||4.50 %||6.00%|
|31 days 45 days||5.50 %||6.00%|
|46 days to 60 days||6.25 %||6.00%|
|61 days to 90 days||6.25 %||6.25%|
|91 days to 120 days||6.50 %||6.40%|
|121 days to 179 days||6.75 %||6.60%|
|180 days||7.00 %||7.00%|
|181 days to 269 days||7.00 %||7.00%|
|270 days||7.30 %||7.00%|
|271 days to 363 days||7.30 %||7.00%|
|364 days||7.40 %||7.00%|
|365 days to 389 days||7.50 %||7.25%|
|390 days||7.50 %||7.25%|
|391 days to Less than 23 Months||7.50 %||7.25%|
|23 Months||7.50 %||7.25%|
|23 months 1 Day to less than 2 years||7.50 %||7.25%|
|2 years to less than 3 years||7.50 %||7.25%|
|3 years and above and less than 4 years||7.25 %||7.00%|
|4 years and above and less than 5 years||7.25 %||7.00%|
|5 years and above and inclusive of 10 years||7.00 %||7.00%|
Senior citizens are allowed to open their fixed deposit accounts with Kotak Mahindra Bank. They are offered special rates of interest on their fixed deposits.
Tabular representation of Kotak Bank Senior Citizen FD Rates – March 2017
|Kotak Bank Senior Citizen FD Interest Rates|
|Tenure||Rate of Interest (Below Rs 1 Crore)|
|7 days to 14 days||4.50 %|
|15 days to 30 days||5.00 %|
|31 days 45 days||6.00 %|
|46 days to 90 days||6.75 %|
|91 days to 120 days||7.00 %|
|121 days to 179 days||7.25 %|
|180 days||7.50 %|
|181 days to 269 days||7.50 %|
|270 days||7.80 %|
|271 days to 363 days||7.80 %|
|364 days||7.90 %|
|365 days to 389 days||8.00 %|
|390 days||8.00 %|
|391 days to Less than 23 Months||8.00 %|
|23 Months||8.00 %|
|23 months 1 Day to less than 2 years||8.00 %|
|2 years to less than 3 years||8.00 %|
|3 years and above and less than 4 years||7.75 %|
|4 years and above and less than 5 years||7.75 %|
|5 years and above and inclusive of 10 years||7.50 %|
The bank allows premature renewal of its fixed deposits on request from the depositor. The depositor can renew a fixed deposit by applying for premature closure of a current term deposit. He/she can enjoy the interest rate applicable on the date of renewal, provided the deposit is renewed for a period longer than the balance period of the original deposit.
The bank allows premature withdrawal of its fixed deposits on request. It does not charge any penalty fee for withdrawal in less than 181 days. However, for 181 days and above, Kotak Mahindra Bank charges 0.50% as penalty fee on premature withdrawal.
Yes, the bank provides loans to the depositor against his/her FDs opened with Kotak Mahindra Bank. The bank also provides loans against deposit standing in the name of minors. However, you need to provide necessary documents to the bank in support of your application.
Yes, the bank provides tax saver fixed deposits. With the bank’s tax saving term/ fixed deposits, you can get good returns on your investments along with the benefit of saving tax. The bank offers regular tax saving products to resident individuals, HUFs, minors and senior citizens above the age of 60. As per the Income Tax Act, 1961, Kotak Mahindra Bank deserves the right to deduct tax at source, if the interest earned on your term deposits exceeds ₹ 10,000. After deducting tax, the bank will issue a TDS certificate to you.