Kotak Bank FD Interest Rates | Updated Returns & Features

Key Takeaways
 

• Senior citizens receive an additional 0.50% interest on deposits.
   
• Premature withdrawal of any investment made via Kotal bank FD attracts penalty charges based on tenure.
   
• Minimum investment at Kotak Bank FD starts from just Rs. 5,000 only.

Fixed deposits provide secure investment options for investors. These instruments offer guaranteed returns at fixed rates. Kotak Bank FD requires a minimum Rs. 5,000 investment amount. 

Money stays locked for predetermined periods against promises. Interest withdrawal options include cumulative, monthly, or quarterly payouts. Kotak Bank FD delivers higher yields than savings accounts.

This comprehensive guide covers current Kotak Bank FD rates, features, eligibility criteria, tax implications, and investment procedures for 2025.

Kotak Bank Fixed Deposit Interest Rate

Kotak bank fixed deposit varies depending on several factors. Keep reading to understand the metrics:

Latest FD Interest Rates (Domestic Deposits < ₹3 Crore)

Kotak Bank FD rates are effective from 20th August 2025. Regular customers earn lower rates than senior citizens. Short-term deposits offer modest returns.
 

Senior Citizen FD Rates

Senior citizens receive an additional 0.50% on deposits. This benefit applies to domestic accounts only. NRO and NRE deposits exclude this advantage.

Bulk Deposit FD Rates (> ₹3 Crore)

Kotak Bank FD offers special rates for deposits. High-value deposits receive preferential treatment rates.
 

Go to https://www.kotak.com/en/personal-banking/deposits/fixed-deposit/fixed-deposit-interest-rate.html to know more about interest rates.

Types of Kotak Bank Fixed Deposit Schemes

Kotak Bank FD offers various schemes for customers. Each scheme suits different investor needs perfectly.

• Standard Fixed Deposit: Banks offer standard fixed deposits to customers. Money gets invested for fixed time periods. Interest rates remain predetermined throughout the tenure. Tenures vary from 7 days to 10 years.
• Special Fixed Deposit: Special deposits offer unique time periods here. These periods include 290 days or 390 days. Higher interest rates attract various investors significantly. Special FDs remain popular investment choices always.
• Tax Saving Fixed Deposit: Tax-saving deposits require a minimum 5-year tenure. Invested amounts get tax exemption under Section 80C. Interest earned remains liable for tax deduction. The principal amount stays completely secure throughout tenure.
• Floating Fixed Deposit: Floating deposits offer flexible interest rate options. Rates change quarterly or yearly as decided. RBI guidelines determine all rate change patterns. Interest rate changes benefit investors over time.

Kotak Bank FD provides secure investment options. These schemes offer steady growth and income.

Features and Benefits of Kotak Bank FD

Kotak Bank FD offers multiple attractive features for investors:

• Attractive Interest Rates: Competitive rates help grow your money effectively.
• Deposit Amount: Minimum investment starts from just Rs. 5,000.
• Maturity Period: Flexible tenure options range from 7 days to 10 years.
• Flexible Interest Withdrawal: Choose monthly, quarterly, or maturity interest payouts.

These features make Kotak Bank FD an ideal choice.

Comparison of Kotak FD Rates with Other Banks

Kotak Bank FD rates remain competitive against major banks:

This comparison helps choose the best Kotak Bank FD option.

Bonus Tip: To maximise returns and reduce penalty risks, consider creating multiple short-term FDs instead of a single large one. This strategy gives flexibility; allowing partial withdrawals when needed without breaking the entire deposit.

Eligibility Criteria & Required Documents for Kotak Bank FD Interest Rates

Kotak Bank FD maintains simple eligibility and documentation requirements:

Eligibility Criteria: Citizens of India can open Kotak Bank FD accounts. Non-resident Indians are eligible for these deposit schemes. Persons of Indian origin qualify for FD investments. Senior citizens and minors can also apply easily.

Required Documents: Existing customers access FDs through digital banking platforms. Netbanking and mobile banking provide convenient FD services. New customers must visit bank branches personally. KYC documents are mandatory as per banking guidelines.

These requirements ensure smooth FD account opening processes.

Tax Implications on Kotak Bank Fixed Deposit

Interest income from Kotak Bank FD is fully taxable. This income gets added to your total yearly income. Tax rates depend on your individual income tax slabs.

Banks deduct TDS when interest exceeds specific annual limits. Regular depositors face TDS after Rs. 40,000 yearly interest. Senior citizens get TDS exemption up to Rs. 50,000. Standard TDS rate remains 10% on excess interest amounts.

You must include FD interest in income tax returns. Report this income under the ‘Income from Other Sources’ section. Kotak Bank FD holders should verify TDS in Form 26AS.

Forms 15G and 15H can reduce TDS deductions. These forms apply when total income stays below limits. Lower deduction certificates also help reduce TDS rates effectively.

Advance tax payments help avoid year-end tax burdens. Online portals and bank branches accept tax payments easily. Proper record keeping ensures smooth tax compliance always.

Kotak Bank FD Premature Withdrawal & Closure Rules

Kotak Bank FD allows early withdrawal with specific penalties:

• Penalty Structure: Deposits under 180 days attract no penalty charges. FDs between 181-364 days incur a 0.50% penalty deduction. Deposits above 365 days face 1.00% penalty charges. Closure within 7 days returns the principal amount only.
   
• Withdrawal Process: Mobile banking provides instant withdrawal through premature options. Net banking offers a similar facility under the investment sections. Branch requests process within 24-48 hours for credit.

Understanding these rules helps make informed withdrawal decisions.

How to Invest in Kotak Bank FD?

Kotak Bank FD investment process remains simple and convenient:

Online Investment Methods:

Log in to Kotak Mobile Banking App or Net Banking. Select ‘Banking’ then choose the ‘Deposit’ option from the menu. Click ‘Open Fixed/Recurring Deposit’ to start the process. Add required details and click submit to complete.

Mobile app users click Fixed/Recurring Deposit under Banking. Select your preferred deposit type and add details. Submit the form to open your account successfully.

Alternative Investment Methods:

SMS 'FDRD' to 567678 for quick FD opening. Visit the nearest Kotak Mahindra Bank branch for assistance. Existing customers can use the online portal for investments.

Download the Kotak Mobile Banking app for easy investments. The app supports both iOS and Android devices.

These methods make Kotak Bank FD investment accessible everywhere.

Conclusion

Kotak Bank FD offers competitive interest rates with flexible tenure options. Senior citizens enjoy additional benefits on domestic deposits. Multiple investment methods make Kotak Bank FD accessible for all investors seeking secure returns.

FAQs

Q1: Is the interest rate fixed throughout the FD tenure?
Yes, once you open a Kotak Bank FD, the interest rate remains fixed for the entire deposit period, regardless of future rate changes.

Q2: Can NRIs invest in Kotak Bank Fixed Deposits?
Yes, Kotak Bank offers NRE and NRO fixed deposits for NRIs. However, senior citizen benefits and tax-saving FD options are not applicable to NRE deposits.

Q3: Can I take a loan against my Kotak Bank FD?
Yes, Kotak Bank allows customers to avail loans against their fixed deposits. The loan amount typically goes up to 90% of the FD value.

Q4: What happens if I don’t withdraw the FD amount after maturity?
If you don’t withdraw or update instructions at maturity, Kotak Bank may auto-renew the FD for the same tenure at applicable prevailing rates or move the amount to a savings account, depending on prior instructions.