Kotak Mahindra Bank FD Interest Rate

• Standard FD: It requires an investor to invest his money for a fixed period of time, 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.
• 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, etc. Special FDs offer a higher interest rate and are popular among various investors.
• Tax saving FD: Tax saving FDs, unlike standard FDs, cannot be booked for less than a period of 5 years. The amount invested is exempt from tax under section 80C, but the interest generated from the FD is liable to be taxed.  
• 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 avail the benefits of a changing interest rate. RBI guidelines determine the change in the rate of interest.
• Kotak Bank Fixed Deposit Interest Rates.Generally, with the rise in repo rates, banks tend to increase FD rates and Loan rates, The repo rate by the RBI acts as a benchmark for banks, NBFCs, and other financial institutions. This is because the repo rate is the interest rate at which the RBI lends money to the banks. Kotak Mahindra bank offers several advantages ranging from assured returns to availing an overdraft facility against your fixed deposit depending on its tenure.

Pros:

• Interest is paid on a quarterly basis.
• One can continue to invest till maturity.
• One can save tax by investing into 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.
• Amount invested with Bank is covered by DICGC insurance for the total sum of Rs 5 lakhs. 

Cons:

• Interest earned on fixed deposits is not tax-free and subject to  tax as per your applicable slab rate. .
• Also in some cases, banks deduct TDS at the time of paying the fixed deposit interest. So if the individual has income below the basic exemption limit as defined under the Income-tax Act, he/she will still have to file the Income Tax return to claim the refund of TDS deducted by the bank
• Historically Fixed Deposits have given lower returns as compared to Mutual Fund and equity instruments.

Resident Indians, senior citizens, members of HUF, and NRIs are eligible to open their fixed deposit accounts with Kotak Mahindra Bank.

One can start a fixed deposit with a minimum amount 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 - PAN Card, Driving License, Passport, Voter’s ID or Aadhar Card, Utility Bill, Bank account Passbook (Updated and should not be more than 3 months old)

1. 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 on 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 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 the form once can submit the details and create an FD.

2. 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 as well as the soft copy of the same. The bank official will help you to directly open an FD without having any savings / current account.

3. 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.

The Tax applications remain the same irrespective of the bank in which you open the fixed deposit.

• The interest earned on Fixed Deposit is taxable in the hands of an individual (age less than 60 years). The tax is levied as per the normal tax slab applicable for such individuals.
• In the case of a senior citizen (Age above 60 years), a deduction of up to Rs 50,000 is available under section 80TTB.
• In case of a 5-year tax saving fixed deposit, you will be entitled to a deduction under section 80C of the Income Tax Act, wherein the deduction would be equal to the amount deposited during the Financial year with the maximum threshold limit of Rs 1,50,000. (This benefit is not available for individuals who opt for a New Tax Regime)

The bank is entitled to deduct TDS @ 10% as per Section 194A of the Income Tax Act if interest income exceeds Rs 40,000 (Rs 50,000 for resident senior citizens) during the financial year.

However, if your total income is below the taxable limit, you can submit Form 15G (For individuals aged less than 60 years) or Form 15H (For individuals aged more than 60 years) to the bank and request them not to deduct any TDS.