Kotak Mahindra Tax Saving FD
Kotak Mahindra Tax Saving FD is a five-year lock-in fixed deposit that currently earns 6.25% p.a. for general depositors and 6.75% p.a. for senior citizens. You can invest up to Rs.1.5 lakh in a financial year and claim a deduction under Section 80C of the Income Tax Act. Interest can be paid out quarterly or reinvested until maturity.
Interest Rates on Kotak Mahindra Tax Saving FD
Below table shows the Kotak Mahindra Bank Tax Saving FD interest rates:
Tenure | General Public Interest Rates | Senior Citizen |
7-14 Days | 2.75% | 3.25% |
15-30 Days | 2.75% | 3.25% |
31-45 Days | 3.00% | 3.50% |
46-90 Days | 3.50% | 4.00% |
91 Days | 4.00% | 4.50% |
92 to 179 Days | 4.25% | 4.75% |
180 Days | 5.00% | 5.50% |
181 to 269 Days | 5.50% | 6.00% |
270 Days | 5.50% | 6.00% |
271 to 363 Days | 6.00% | 6.50% |
364 Days | 6.00% | 6.50% |
365 to 389 Days | 6.35% | 6.85% |
390 Days | 6.35% | 6.85% |
391 Days- less than 23 Months | 6.35%–6.55% (varies within this span) | 6.85%–7.05% (varies within this span) |
23 Months | 6.55% | 7.05% |
23 Months 1 Day less than 2 Years | 6.55% | 7.05% |
2 Years- less than 3 Years | 6.80% | 7.30% |
3 Years and above but less than 4 Years | 6.40% | 6.90% |
4 Years and above but less than 5 Years | 6.40% | 6.90% |
5 Years and above up to 10 Years | 6.25% | 6.75% |
Note: The interest rates are effective from 10 June 2026.
Features and Benefits of Kotak Mahindra Tax Saving FD
Here are the main features and benefits of the scheme:
Account type | Term deposit/Special term deposit |
Amount | Minimum: Rs.5,000 Maximum: Rs.1.5 lakh (in one financial year) |
Period | Minimum: 5 years Maximum: 10 years |
Interest rate* | General citizens: 6.25% p.a. (5–10 year tenure) Senior Citizens: 6.75% p.a. (5–10 year tenure) |
Premature withdrawals | Not Available |
Nomination | Available |
Note: Interest rate effective from 10 June 2026.
Under Section 80C, Kotak Mahindra Tax Saving FD investments between Rs.100 and Rs.1.5 lakh in a financial year qualify for the tax deduction, even though the deposit's own minimum booking amount is higher.
A Kotak Mahindra Tax Saving FD does not auto-renew at maturity, so you will need to reinvest the proceeds yourself if you want to continue saving in a fresh tax-saving FD.
Kotak Mahindra Tax Saving FD Interest Rate Calculator
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.
How to Open Kotak Mahindra Tax Saving FD
You can open a tax saving FD with Kotak Mahindra through two modes: the mobile banking feature or the net banking feature.
Net banking:
- Step 1: Log into the bank's net banking portal with your user name and password.
- Step 2: Navigate to the ''Banking'' tab.
- Step 3: Select the option for ''Deposits''.
- Step 4: Click on ''Open a fixed deposit''.
- Step 5: Enter the details required.
- Step 6: Click on ''Submit''.
Mobile Banking
- Step 1: Open the Kotak Mahindra mobile banking application.
- Step 2: Click on ''Banking''.
- Step 3: Click on ''Fixed Deposits''.
- Step 4: Click on ''Open Fixed Deposits''.
Key Information Before Opening Kotak Mahindra Tax Saving FD
Here is the important information you need to know before opening a tax-saving FD with the bank:
Eligibility to Open a FD | Individual |
Documents Required* |
|
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.
Summary
The Kotak Mahindra Tax Saving FD is a five-year lock-in fixed deposit that helps you claim a Section 80C deduction while earning interest on deposits of up to Rs.1.5 lakh a year. It offers a fixed return, a senior citizen benefit and the choice between quarterly interest payout and reinvestment until maturity. You can open the account instantly through Kotak Mahindra Bank's net banking portal or mobile app.
FAQs on Kotak Mahindra Tax Saving FD
- What is a Kotak Mahindra Tax Saving FD?
A Kotak Mahindra Tax Saving FD is a fixed deposit that lets you claim a tax deduction under Section 80C of the Income Tax Act while earning interest on your investment. It comes with a mandatory five-year lock-in and the option to receive interest quarterly or on maturity. The scheme is open to resident individuals, including senior citizens.
- How much can I invest in a Kotak Mahindra Tax Saving FD?
You can invest up to Rs.1.5 lakh in a Kotak Mahindra Tax Saving FD in a single financial year to claim the Section 80C deduction. The minimum and maximum deposit amounts are listed in the table above. Investing beyond the Section 80C cap does not extend the tax benefit to the excess amount.
- Can I withdraw my Kotak Mahindra Tax Saving FD before maturity?
No, premature or partial withdrawal is not permitted on a Kotak Mahindra Tax Saving FD before the five-year lock-in period ends. This restriction is what qualifies the deposit for the Section 80C tax benefit. Regular fixed deposits with Kotak Mahindra Bank do not carry this restriction.
- Is it mandatory to add a nominee to my Kotak Mahindra Tax Saving FD?
Nomination is not mandatory for a Kotak Mahindra Tax Saving FD, but Kotak Mahindra Bank recommends adding one. A nominee ensures the deposit and its interest transfer smoothly if the account holder dies during the tenure. You can add or update a nominee when opening the FD or at a later date.
- Is TDS deducted on interest earned from a Kotak Mahindra Tax Saving FD?
Yes, TDS is deducted on interest earned from a Kotak Mahindra Tax Saving FD once it crosses the threshold set under the Income Tax Act, and a higher threshold applies to senior citizens. This applies because FD interest is taxable as per the depositor's income tax slab, unlike the principal invested, which already carries a Section 80C deduction.
- If I hold a Kotak Mahindra Tax Saving FD jointly, who gets the tax benefit?
In a jointly held Kotak Mahindra Tax Saving FD, only the first or primary account holder can claim the Section 80C tax deduction. The second holder cannot claim this benefit even though both names appear on the deposit. Interest earned is still paid out to the account as per the FD's terms.
- Can I take a loan against my Kotak Mahindra Tax Saving FD?
No, a loan against a Kotak Mahindra Tax Saving FD is not permitted during its five-year lock-in period. This condition applies because the deposit must remain untouched to retain its Section 80C tax-saving status. Regular, non-tax-saving fixed deposits with Kotak Mahindra Bank do allow a loan facility.
- How can I open a Kotak Mahindra Tax Saving FD?
You can open a Kotak Mahindra Tax Saving FD through the bank's net banking portal or its mobile banking app by selecting the fixed deposit option under the banking or deposits tab. Existing savings or current account holders do not need to submit fresh identity or address proof. New customers must submit identity, address and signature proof along with photographs.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2026 BankBazaar.com.