Kotak Mahindra Bank, with its headquarters in Mumbai, is an eminent financial service provider and one of the most preferred destinations for fixed depositors in India.
Kotak Mahindra Bank FD rates are one of the most lucrative ones in the current Indian economy. That’s part of the reason why Kotak Bank fixed deposit makes for an excellent avenue to mobilise funds for individuals with a low-risk tolerance.
In this article
Factors Influencing Kotak Bank FD Rates
Interest rates are the most critical part of fixed deposits, apart from the security it provides to depositors. These rates depend primarily on the following factors:
- Age of the depositor – Individuals above the age of 60 years, i.e. senior citizens are eligible for a higher rate of interest on their deposits compared to general citizens.
- Repo rate – This rate is set by the Reserve Bank of India’s Monetary Policy Committee. The apex bank provides overnight loans to the banks. The higher the repo rate, the higher are the FD rates offered by banks and vice versa.
- Reverse repo rate – This is the rate at which RBI avails loans from banks. Similar to the repo rate, it is also directly proportional to FD rates.
- Tenure of deposit – Kotak FD rates also vary based on the tenure for which an individual locks in their deposit.
- Deposit amount – Lastly, the deposit amount also influences Kotak Bank FD rates.
Kotak Mahindra Bank FD Rates
(Last updated 12h Jan 2021)
The following table illustrates the Kotak Bank FD interest rates, as of January 2021 for domestic, NRE Account, and NRO accounts through which premature withdrawal is allowed. Note that this table only shows the rates for deposits below Rs.2 crore.
|Tenure||FD Interest Rates for General Citizens||
FD Interest Rates for Senior Citizens
|7 days – 14 days||2.50%||3.00%|
|15 days – 30 days||2.50%||3.00%|
|31 days – 45 days||2.75%||3.25%|
|46 days – 90 days||2.75%||3.25%|
|91 days – 120 days||3.25%||3.75%|
|121 days – 179 days||3.25%||3.75%|
|181 days – 269 days||4.50%||5.00%|
|271 days – 363 days||4.50%||5.00%|
|365 days – 389 days||4.60%||5.10%|
|391 days – 22 months 29 days||4.90%||5.40%|
|23 months 1 day – 1 year 11 months 29 days||4.75%||5.25%|
|2 years – 2 years 364 days||4.75%||5.25%|
|3 years – 3 years 364 days||4.75%||5.25%|
|4 years – 4 years 364 days||4.75%||5.25%|
|5 years – 10 years||4.50%||5.00%|
Kotak Mahindra Bank Eligibility It is crucial to remember that the above Kotak Fixed Deposit interest rates are subject to change from time to time. Depositors must, therefore, ensure that they are up to date with the current rates offered by the bank to propagate better financial planning.
Individuals belonging to the following categories are eligible to open a Kotak Bank fixed deposit account:
- Regular Indian national
- Member of HUF
- Senior citizens
Types of Kotak Mahindra Bank Fixed Deposits
Kotak Mahindra Bank proffers its customers the four types of fixed deposit accounts mentioned below:
- Cumulative FD – In this type of account, the interest is compounded periodically, and the depositor receives the entire amount at the end of the maturity period.
- Quarterly payout FD – Interest is calculated quarterly and disbursed at the end of each quarter in this FD account type.
- Monthly payout FD – Individuals receive the interest sum at the end of each month by choosing a monthly payout FD account.
- Short-term FD – Individuals can utilise this account type to keep their deposits locked in for a period of 7 to 180 days.
How to Calculate Kotak Fixed Deposit Interest?
In order to calculate FD interest for accounts with a maturity period above 181 days, Kotak Mahindra Bank utilises the following formula:
A = P (1 + r / n) nt
- A = Maturity amount
- P = Principal amount
- r = Rate of interest
- n = frequency of compounding of interest
- t = maturity period
TDS on Kotak Mahindra Bank FD Interest
If the interest an individual earns from all his/her deposit accounts in a particular year is equal to or more than Rs.40,000 then it is subject to 10% taxation. For senior citizens, the threshold is Rs.50,000. Typically, this taxation happens under the purview of the designated bank. However, general citizens and senior citizens can submit Form 15G and 15H respectively to prevent tax deduction at source and instead pay the tax themselves when they file their IT returns.
To submit these forms, one must, however, satisfy certain criteria. For instance,
For Form 15G –
- One has to be a member of HUF or a resident individual below the age of 60 years.
- His/her income earned must not be taxable.
For Form 15H –
- One has to be a resident individual or a member of HUF above 60 years of age.
- His/her total income generated during the particular FY must not be taxable.
These are a few information that individuals interest to start an FD account with Kotak Mahindra bank must be aware of without fail. Kotak Bank FD rates, particularly are an important part of the entire process that individuals follow up with, to implement proper financial planning.