Kotak Mahindra Bank Fixed Deposit

Fixed Deposits (FDs) are investment instruments wherein money can be deposited for a fixed tenure with the bank. Some deposit-taking Non-Banking Finance Companies  (NBFC) offer a fixed deposit facility to their customers. Kotak Bank was an NBFC earlier, and then it evolved over the years and converted into a commercial bank after getting a Banking license from RBI in 2003.

FDs give a higher interest yield compared to a savings account. Kotak Bank is one of the highest fixed deposit interest providers amongst other commercial banks. This article gives you details about Kotak Fixed Deposits.

• Standard FD
• Special FD
• Tax saving FD 
• Floating FD

• Interest is paid every quarter.
• One can continue to invest till maturity.
• One can save tax by investing in tax-saving fixed deposits.
• Kotak provides a nomination facility so a Fixed Deposit account holder can assign a nominee for the amount deposited.
• Using the online application of Kotak Bank, one can easily deposit in a fixed deposit account by opening an account with the bank.
• The amount invested with Bank is covered by DICGC insurance for the total sum of Rs 5 lakhs.

Standard FD

• An investor must invest for a fixed period at a predetermined interest rate.
• Standard FD tenures vary from 7 days to 10 years. This is the most popular FD option chosen by investors.
• The interest rate for this FD ranges from 2.75% to 7.70% across the general public and senior citizens.

Special FD

• Special FDs are ‘special’ because they are usually offered for a special period.
• A special period can be anything, like 290 days or 390 days.
• Special FDs offer a higher interest rate and are popular among various investors.
• The interest rate for this FD ranges from 2.75% to 7.70% across the general public and senior citizens.

Tax-saving FD

• Unlike standard FDs, tax-saving FDs cannot be booked for less than 5 years.
• The amount invested is exempt from tax under section 80C, but the interest generated from the FD is liable to be taxed.  
• The interest rate ranges from 7.00% to 7.50% for the general public and senior citizens.

Floating FD

• Not every bank in India offers its investors the option of a flexible interest rate.
• The rate changes quarterly or yearly, and the investors can benefit from a changing interest rate.
• RBI guidelines determine the change in the rate of interest.

• Resident Indians
• Senior citizens
• Members of HUF
• NRIs are eligible to open their fixed deposit accounts with Kotak
• Mahindra Bank

One can start a fixed deposit with a minimum of Rs. 5,000. (if it's your first Fixed Deposit, the minimum amount is Rs. 10,000/-). There isn't any maximum limit for the fixed deposit amount.

Banks require the below-listed documents for completing the Mandatory Know Your Customer (KYC) procedure before opening an account for its customer

For Identity Proof and Signature Proof

• PAN Card
• Driving License
• Passport
• Voter’s ID or 
• Aadhar Card

For Address proof

• Aadhar Card
• Utility Bill
• Bank account Passbook (Updated) should not be over 3 months old

If you already hold a Savings or Current Account with Kotak, a Fixed Deposit can be opened using the below procedure.

Using Kotak Bank Mobile Application (App)

• Login to the Kotak Bank Application, Go to the Banking section in the App, Click on the Fixed/Recurring Deposits option, then click Open Fixed Deposits. 
• By this, you will get an online form in which you will be required to select the FD tenure and insert the deposit amount. 
• After filling out the form, once can submit the details and create an FD.

Using Kotak Bank Internet banking website

• Login to the Kotak Internet Banking website and go to the “Deposits” tab. Click on Fixed Deposit. 
• By this, you will get an online form in which you will be required to select the FD tenure and insert the deposit amount. 
• After filling out the form, one can submit the details and create an FD.

If you are a new customer of Kotak and do not hold any account, you can visit the nearest Kotak Bank with the Original PAN & Aadhar and the soft copy of the same.

The bank official will help you to directly open an FD without having any savings / current account.

Also, there is an option to create a savings/ current account with the bank and then open an FD using a Mobile application or Internet Banking Facility.

There are multiple modes of breaking your FD. Let’s take a look at them.

1) Via Mobile Banking

• Navigate to Banking.
• Choose Fixed/Recurring Deposits.
• Opt for Premature Withdrawal.

2) Through Net Banking

• Access Investment -> Deposit.
• Click on Premature Withdrawal of Deposit.
• Your funds will be immediately transferred to your account using the above online methods.

3) By visiting a local Kotak Branch

• When using this method, expect the funds to reflect in your account within 24-48 hours.
• Bear in mind for Deposits with a tenure of 181 days or more, an early withdrawal will incur a 0.50% penalty on the applicable interest rate.