Kotak Mahindra Bank Fixed Deposit

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.

Kotak Mahindra Bank FDs:

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.

Features & Benefits of Kotak Mahindra Bank Tax Saving FDs:

  • Interest is paid on quarterly basis, or you can continue to invest till maturity.
  • Offers attractive rates of interest.
  • You can save tax.
  • Minimum deposit period of 5 years and a maximum period of 10 years.
  • Get nomination facility.
  • Premature or partial withdrawal is not allowed.
  • Get TDS certificate on tax deducted at source.
  • Senior citizens (should be resident Indians and above the age of 60) can also open their FD accounts under this scheme.

Features & Benefits of Kotak Mahindra Bank Regular FDs:

  • Get attractive rates of interest.
  • Deposit is accepted for a minimum period of 7 days and a minimum period of 10 years.
  • Minimum deposit accepted is ₹ 10,000 for existing customers and ₹ 25,000 for new customers.
  • Get interest at monthly or quarterly basis or after maturity as preferred by you.
  • Online booking of term/fixed deposit is accepted.
  • Premature withdrawal of fixed deposit is allowed.
  • Offers NRO and NRE term deposits for NRIs.
  • Enjoy nomination facility.
  • Sweep-in facility is available.
  • Get overdraft facility against term deposits.

Features & Benefits of Kotak Mahindra Bank Senior Citizen FDs:

  • Minimum deposit accepted by the bank is ₹ 10,000 for existing customers and ₹ 25,000 for a new customer.
  • Get competitive rates of interest.
  • Deposit is accepted for a minimum period of 7 days and a minimum period of 10 years.
  • You can choose to get interest at monthly or quarterly basis or on maturity.
  • You can open your FDs online with Kotak Mahindra Bank.
  • Get premature withdrawal facility.
  • Get nomination facility.
  • Sweep-in facility is available.
  • Overdraft facility is available.

Kotak Mahindra Bank FD Eligibility:

Resident Indians, senior citizens, members of HUF and NRIs are eligible to open their fixed deposit accounts with Kotak Mahindra Bank.

Minimum/Maximum Amount Required to Open an FD account 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.

Minimum/Maximum Deposit Tenures of Kotak Mahindra Bank FDs:

The bank accepts deposits for a minimum period of 7 days and a maximum period of 10 years.

Kotak Mahindra Bank FD Interest Rates:

The bank offers attractive rates of interest on your fixed deposits. The bank offers 5.25% as the highest rate of interest for domestic and NRO term deposits. The lowest rate of interest for the same is 3.00%. For NRE term deposits, the highest rate of interest offered by the bank is the same. For senior citizens, the bank offers 5.75% p.a. as the highest rate of interest and 3.50% p.a. 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 – 2020

Tenure Interest rate p.a. (General citizens) Interest rate p.a. (Senior citizens)
7 - 14 Days 3.00% 3.50%
15 - 30 Days 3.25% 3.75%
31 - 45 Days 3.25% 3.75%
46 - 90 Days 4.00% 4.50%
91 - 179 Days 4.25% 4.75%
180 Days 4.60% 5.10%
181 Days to 269 Days 4.75% 5.25%
270 Days 4.75% 5.25%
271 Days to 363 Days 5.00% 5.50%
364 Days 5.00% 5.50%
365 Days to 389 Days 5.25% 5.75%
390 Days 5.25% 5.75%
391 Days - less than 2 years 5.00% 5.50%
2 years - less than 5 years 4.75% 5.25%
5 years - 10 years 4.50% 5.00%

Note: The interest rates mentioned in the table are as of 25 May 2020.

FAQs on Kotak Mahindra Bank Fixed Deposit Scheme

  1. Does Kotak Mahindra Bank Allow Premature Renewal of FD?

    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.

  2. Does Kotak Mahindra Bank Charge Premature Withdrawal Charge on FDs?

    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.

  3. Are Loans Provided Against FDs at Kotak Mahindra Bank?

    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.

  4. Does Kotak Mahindra Bank provide Tax Saver Fixed Deposits?

    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.

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