Kotak Mahindra Tax Saving FD offers attractive interest rates on your investment along with tax savings with the option to receive the interest accumulated when the FD matures or on a quarterly basis. You can invest up to Rs.1.5 lakh with a lock-in period of 5 years and save tax under Section 80C of the Income Tax Act. Senior citizens get an additional 0.50% interest per annum.
The general public is offered an interest rate of 4.75% p.a. while senior citizens get 5.25% p.a. This is the interest rate effective from 19 December 2020. Interest rates are subject to change.
Here are the main features and benefits of the scheme:
|Account type||Term deposit/Special term deposit|
Maximum: Rs.1.5 lakh
(in one financial year)
Minimum: 5 years
Maximum: 10 years
General citizens: 4.75% p.a.
Senior Citizens: 5.25% p.a.
|Premature withdrawals||Not Available|
Note: Interest rate with effect from 19 December 2020
Other Tax Saving Scheme
It is beneficial to use the free online Kotak Mahindra FD interest rate calculator to know exactly how much your deposit amount will be on maturity based on the current rate of interest. The only details required are the amount being deposited, type of fixed deposit, the interest rate, and tenure. Your maturity amount will be instantly and accurately displayed on the page enabling you to make an informed decision about your investment.
You can open a tax saving FD with Kotak Mahindra through two modes: the mobile banking feature or the net banking feature.
Here is the important information you need to know before opening a tax-saving FD with the bank:
|Eligibility to Open a FD||Individual|
|Benefits of Kotak Mahindra Tax Saving FD||
*Note: Separate documentation will not be required for those who already hold a Kotak Mahindra bank savings or current account.
It is not mandatory to nominate someone for your tax-saving FD but it is advisable to have a nominee.
Premature withdrawal before the lock-in period of 5 years is not allowed for a tax-saving FD.
The interest earned on your fixed deposit is taxable as per your income tax bracket so TDS will be applicable. This is only if the aggregate interest earned for all deposits held against your customer ID exceeds Rs.40,000 in a financial year. For senior citizens, TDS is applicable if the interest exceeds Rs.50,000 in a financial year.
For a tax-saving FD held as a joint account, the tax benefits will only be applicable for the first holder of the account.
Loan against FD is not allowed for a tax-saving FD.
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