Kotak Bank FD Interest Rates, Feb 2018

Kotak FD rates

Tenure FD Rates Senior Citizen FD Rates
7 days to 14 days 3.50% 4.00%
15 days to 30 days 4.00% 4.50%
31 days to 45 days 5.00% 5.50%
46 days to 90 days 5.40% 5.90%
91 days to 120 days 6.00% 6.50%
121 days to 179 days 6.25% 6.75%
180 days 6.60% 7.10%
181 days to 364 days 6.70% 7.20%
365 days to 389 days 6.80% 7.30%
390 days 6.85% 7.35%
391 days to 23 months 6.80% 7.30%
23 months 1 day to 2 years 364 days 6.70% 7.20%
3 years to 4 years 364 days 6.50% 7.00%
5 years to 10 years 6.25% 6.75%

The above rates are applicable for deposits of below Rs. 1 crore.

Kotak Bank FD Maturity Calculator
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Kotak Bank FD Interest Rates 2018

Kotak Bank offers multiple fixed deposit options to their customers to park their surplus savings for a fixed tenure. A customer is required to make a deposit once into their FD account at the time of opening the account with the bank. The customer is not allowed to deposit more money and withdraw any money in the account during the tenure of the deposit. Fixed Deposits of Kotak Bank have a higher interest rate compared to their saving deposits. Benefits of opening a FD account in Kotak Bank are:

  • An overdraft facility up to 85 per cent is available against fixed deposit
  • Nomination facility available
  • Convenience of booking fixed deposits online through Net Banking
  • Flexibility to choose interest payout frequency on your fixed deposit as per your convenience
  • Availability of auto sweep in facility

FD Rates in Kotak Bank

FDs are attractive financial instruments for depositors looking for attractive returns and high safety. FD interest rates in Kotak Bank range from 3.50% p.a. to 6.70% p.a. for deposits with a tenure of 7 days to less than 365 days. These deposits are known as short term deposits as they have a tenure of less than 1 year. Short term Kotak Bank FD rates for senior citizens range from 4.00% to 7.20% p.a.

Always, compare tenure wise FD rate of banks to choose the FD rate at which the bank offers the highest fixed deposit interest rate and if possible, opt for FD with highest interest rate. Kotak Bank FD rates are the highest for the deposits with a tenure of 390 days to 390 days, wherein the FD rate of interest is 6.85% p.a

Kotak Bank FD interest rates for long term deposits with tenure of 5 years to 10 years offer good returns. Kotak Bank fixed deposit rates for deposits with a tenure of 10 years is 6.25%. Senior citizen are offered deposit rates of 6.75% p.a. for long termed FDs.

Kotak Bank Fixed Deposit Rates

Kotak Bank offers best FD rate of 6.85% on term deposits for a tenure of 390 days to 390 days. The bank offers special interest rate on FD for senior citizens. Current Kotak Bank FD rates for senior citizens range from 4.00% to 7.35%. Fixed Deposits rates of Kotak Bank are a function of many factors such as monetary policies of RBI, economic growth rate, credit demand and liquidity position of the bank.

The factors affecting Fixed Deposit interest rates are as follows:

Policies Framed by RBI – As per RBI guidelines, the change in Cash Reserve Ratio (CRR) and repo rate affects the interest rate of all banking instruments including the fixed deposit.

Recession – Recession results in a decrease in the interest rate offered on fixed deposit. At the time of recession, RBI is forced to release the funds in the market which it achieves by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.

Inflation – Inflation has a positive effect on a fixed deposit interest rate. Banks typically fix interest rates of FD in a manner that it is higher than the existing inflation rates. Hence, FD rates tend to be higher in a period of rising inflation.

Current State of Economy – Economic condition of the country is the major factor that affects the fixed deposit interest rate. In a booming economy, people need and are willing to take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through fixed deposits.

Kotak Bank Fixed Deposit

Tax Saving Fixed Deposit

Description:

  • The scheme has been designed to help the resident individuals, HUFs, minors and senior citizens to save tax along with great returns by investing into this fixed deposit.
  • Tax benefits on deposit under section 80C on an amount between Rs. 100 to 1.5 lakh
  • Nomination facility available
  • The depositor is allowed to choose to receive the interest on its due date or re invest the interest and the principal to earn further interest
  • TDS will be applicable on the earned interest if it exceeds Rs. 10, 000 as per the applicable rates

Who is eligible?

  • Resident Indians, hindu undivided family, minors and senior citizens above 60 years of age
Regular Fixed Deposit

Description:

  • This scheme lets you earn higher interest on your principal money, an individual has the option to choose interest payout frequency as per their convenience.
  • An overdraft facility up to 85 per cent is available against fixed deposit
  • Nomination facility available
  • Convenience of booking fixed deposits online through Net Banking
  • Flexibility to choose interest payout frequency on your fixed deposit as per your convenience
  • Availability of auto sweep in facility

Who is eligible?

  • Resident Indians, hindu undivided family and sole proprietorship firms
Senior Citizen Fixed Deposit

Description:

  • The scheme has been designed to facilitate senior citizens to earn maximum returns on their fixed deposits.
  • Opportunity to earn attractive interest rates
  • Nomination facility available
  • Convenience of booking fixed deposits online through net banking
  • Flexibility to choose interest payout frequency on your fixed deposit as per your convenience
  • Availability of auto sweep in facility

Who is eligible?

  • Resident Indians of 18 years of age and above
Ace Fixed Deposit

Description:

  • A type of a composite product by the bank where monthly interest earned on a fixed deposit is invested in an equity mutual funds through Systematic Investment Plan.
  • Opportunity to earn attractive interest rates
  • Nomination facility available
  • Earnings from equity fund is tax free if redeemed 1 year post investment
  • Ease and convenience of operation
  • Choice to select the equity mutual fund scheme under this deposit

Who is eligible?

  • Resident Indians, hindu undivided family, sole proprietorship firms, partnership firms, limited companies and trust

Kotak Bank FD Calculator

Kotak Bank fixed deposit calculator helps you to calculate maturity value of your deposited amount at the interest rate offered compounded at quarterly. The amount of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.

  • Deposit amount – This is the initial amount deposited by a customer in Kotak Bank. Bank may allows higher interest rate on larger deposits. Kotak Bank offers deposit amount in the range of Rs. 10,000 for existing bank customers and Rs. 25,000 for new customers to No Limit.
  • Rate of Interest - Interest rate is the rate charged by the bank on your fixed deposit. Kotak Bank offers a higher rate of interest on fixed deposits of longer tenure and lower interest rate on deposits of less than a year. Highest interest rate offered by Kotak Bank is 6.85% for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days .
  • Period of deposit - Bank offers low interest rate for short tenure FDs and higher interest rate for long tenure FDs. Bank offers a rate of 3.50% for a 7 Days FD and a rate of 6.25% for a 10 Years FD.
  • Interest Compounding Frequency - This determines the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half yearly or annual frequency.

Illustration: : Mr. A opens a FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 3.50 %. In this case, the maturity amount at the end of 7 Days will be Rs. 100,067 which includes the principal of Rs. 1 lakh and interest of Rs. 67 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.

Kotak Bank calculates quarterly interest on its fixed deposits.

FD in Kotak Bank – Premature Withdrawal

Premature closure of Term Deposit with Kotak Bank is along with the lower interest rate of 0.50% for deposits held for more than 181 days than the contracted rate. The penal provisions for premature closure on Kotak Bank FD are subject to change from time to time and may also vary with deposit schemes.

Loan against Fixed Deposit Kotak Bank

Kotak Bank offers loan up to 85% against its own deposit. Note that Kotak Bank will not give you loan against FD of any other bank. Kotak Bank offers Loan against FD at the rate of 4.5% to 7.85%

Maximum loan tenure is restricted up to the maximum tenure of the FD.

Illustration - Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in Kotak Bank. The borrower later decided to take loan against his FD. The bank has approved a credit limit of 85% against his FD at 10% interest rate. Now, if the borrower draws Rs. 85,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 85,000 availed for 1 month only. The amount he repays after 1 month is Rs. 85,703. So, the interest charged on the loan taken is Rs. 703.

Documents required to open Fixed Deposit Account in Kotak Bank

  • Identity Proof: PAN Card, Voter ID Card, Passport, Driving License
  • 2 Photographs

FAQs on Kotak Bank Fixed Deposit

What is the highest FD rate for Kotak Bank?

You can earn a maximum interest of 6.85% on Kotak Bank fixed deposit.

Are there any special rates for senior citizens FD of Kotak Bank?

Yes, senior citizens get a higher rate on their deposits compared to FD rates. The rate of regular FD are in the range of 3.50% to 6.85%. Compared to this, the rate of senior citizens FD are in the range of 4.00% to 7.35%.

What is the tenure range for Kotak Bank Fixed Deposit?

The tenure ranges from 7 days to 10 years.

Is there any minimum amount that I have to give for opening a Fixed Deposit with Kotak Bank ?

The minimum deposit amount required to book an FD with Kotak Bank is Rs. 10,000 for existing bank customers and Rs. 25,000 for new customers.

Can I deposit additional amount in my FD account?

No, you cannot deposit any additional amount in your existing FD account as you are allowed to deposit only once at the time of opening the account. If you want to invest any additional amount in FD, you are required to open a new FD account.

Who is eligible for opening an FD account in Kotak Bank?

All resident individuals, HUFs, NRIs, Firms including minors are eligible to open a fixed deposit account.

What documents are required to open an FD account in Kotak Bank ?

The documents required to open an FD account in Kotak Bank includes Identity Proof: PAN Card, Voter ID Card, Passport, Driving License, 2 Photographs.

Is it possible to change the tenure of my existing fixed deposit account with Kotak Bank ?

No, it is not possible to alter the tenure selected for the fixed deposit account once the account is opened. However, you may close your existing fixed deposit account and can open a new account with a desired tenure of your choice.

What are the implications of opening an FD bank account without having PAN?

Following are the implications for the customers opening an FD account with Kotak Bank without their PAN card

  • TDS will be deducted at the rate of 20% as against 10% under section 206AA
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

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