Maximise Your Savings with Kotak Mahindra Bank
In today’s volatile economy, securing your savings with guaranteed returns is more crucial than ever. Fixed deposits (FDs) stand out as a low-risk investment option, offering predictable interest earnings backed by reputable banks. If you’re eyeing fixed deposit rates Kotak or exploring fixed deposit interest in Kotak Mahindra Bank, you’re in the right place. As of September 2025, Kotak Mahindra Bank continues to deliver competitive rates, flexible tenures, and senior citizen perks, making it a top choice for conservative investors. This guide breaks down everything you need to know to make an informed decision.
What is a Fixed Deposit in Kotak Mahindra Bank?
A fixed deposit is a term deposit where you park a lump sum with the bank for a predefined period, earning fixed interest in return. Unlike savings accounts, FDs lock in your money for stability and higher yields, ideal for risk-averse individuals planning for goals like retirement or emergencies.
Kotak Mahindra Bank’s FDs shine with unique features like seamless online management via their app, sweep-in facilities linking to savings accounts for liquidity, and nomination options for hassle-free inheritance. Plus, they’re insured up to ₹5 lakh by DICGC, ensuring capital safety. What sets Kotak apart is its digital-first approach—open an FD in minutes without branch visits—while maintaining personalised support for complex needs like NRI accounts.
Fixed Deposit Rates Kotak updated
Kotak Mahindra Bank revised its FD rates in June 2025, keeping them attractive amid the RBI’s steady repo rate. For deposits below ₹3 crore, rates range from 2.75% to 6.60% p.a. for general customers and up to 7.10% p.a. for seniors (an extra 0.50% boost). These apply to domestic, NRO, and NRE FDs, with tenures from 7 days to 10 years.
Here's a comprehensive table of fixed deposit rates Kotak
Tenure | General Public Rate (p.a.) | Senior Citizens Rate (p.a.) |
7 – 14 Days | 2.75% | 3.25% |
15 – 30 Days | 2.75% | 3.25% |
31 – 45 Days | 3.00% | 3.50% |
46 – 90 Days | 3.50% | 4.00% |
91 Days | 5.00% | 5.50% |
92 – 179 Days | 4.25% | 4.75% |
180 Days | 5.72% | 6.25% |
181 – 269 Days | 5.50% | 6.00% |
270 Days | 5.50% | 6.00% |
271 – 363 Days | 6.00% | 6.50% |
364 Days | 6.00% | 6.50% |
365 – 389 Days | 6.25% | 6.75% |
390 Days (12M 25D) | 6.50% | 7.00% |
391 Days – <23 Months | 6.60% | 7.10% |
23 Months | 6.60% | 7.10% |
23M 1D – <2 Years | 6.50% | 7.00% |
2 – <3 Years | 6.40% | 6.90% |
3 – <4 Years | 6.40% | 6.90% |
4 – <5 Years | 6.40% | 6.90% |
5 – 10 Years | 6.25% | 6.75% |
Short-term FDs (under 1 year) suit liquidity needs with modest rates around 3-6%, while long-term (3+ years) max out at 6.60% for optimal compounding. Rates for deposits ₹3-10 crore differ slightly but allow premature withdrawal; above ₹10 crore, no early exit.
Fixed Deposit Interest in Kotak Mahindra Bank for Senior Citizens
Seniors (60+ years) enjoy an additional 0.50% p.a. on most FDs, pushing peaks to 7.10%—a boon for retirement planning. This applies to residents but not NRO/NRE accounts.
Example: Invest ₹5 lakh for 23 months at 7.10% (cumulative, quarterly compounding). Maturity value: ≈ ₹5,89,500 (interest ≈ ₹89,500). Without the senior boost, it’d be ₹5,82,000 at 6.60%. This extra edge can add thousands annually, making Kotak a senior-friendly pick.
Types of FD in Kotak Mahindra Bank
Kotak offers versatile FD variants:
- Regular FD: Everyday choice with flexible payouts; rates as above.
- Tax Saving FD: 5-year lock-in, up to ₹1.5 lakh deduction under Section 80C; rates align with regular long-term (6.25-6.40%).
- Cumulative vs Non-Cumulative FD: Cumulative reinvests interest for compounding (higher effective yield); non-cumulative pays out monthly/quarterly for regular income.
- NRO/NRE FD (for NRIs): Same rates as domestic for <₹3 crore; NRE is tax-free in India, NRO taxable. Tenures up to 10 years, fully repatriable for NRE.
Choose based on your cash flow—cumulative for growth, non-cumulative for steady income.
Eligibility & Minimum Deposit for Kotak FD
Anyone with a Kotak savings/current account (or new applicants) can open an FD—individuals, HUFs, firms, trusts. NRIs need valid visas/passports. KYC (PAN, Aadhaar, address proof) is mandatory.
Minimum deposit: ₹5,000 (no max limit). Tenures: 7 days to 10 years, in multiples of days/months. Seniors qualify automatically via age proof.
How to Calculate Fixed Deposit Interest in Kotak Mahindra Bank
Kotak uses simple interest for non-cumulative (payouts) and quarterly compounding for cumulative.
Formula for Cumulative (Compound): Maturity Amount (A) = P × (1 + r/4)^(4×t) Where P = Principal, r = Annual rate (decimal), t = Years.
Simple Interest (Non-Cumulative): I = P × r × t
Example: ₹1 lakh FD for 1 year (365-389 days) at 6.25% cumulative.
- Quarterly rate: 6.25%/4 = 1.5625%
- A = 1,00,000 × (1 + 0.015625)^4 ≈ ₹1,06,398
- Interest earned: ₹6,398
Use Kotak’s online calculator for precise figures—input amount, tenure, and type for instant results.
Benefits of Choosing Kotak Fixed Deposit
Kotak FDs prioritise safety and convenience:
- Safety & Reliability: Backed by a top private bank with strong CRAR; DICGC cover up to ₹5 lakh.
- Loan Against FD: Borrow up to 90% without breaking the FD at low rates (1-2% above the FD rate).
- Online Booking: Instant via app/net banking; auto-renewal options.
- Flexible Tenure: From short bursts to decade-long locks, with partial withdrawals.
These perks make fixed deposit interest in Kotak Mahindra Bank not just rewarding but user-friendly.
Tax Implications on Fixed Deposit in Kotak
FD interest is “Income from Other Sources,” taxed at your slab rate (up to 30% + cess). TDS kicks in at 10% if annual interest > ₹40,000 (general) or ₹50,000 (seniors)—submit Form 15G/H to avoid if income qualifies.
Tax Saver FDs qualify for ₹1.5 lakh deduction under 80C. Seniors get ₹50,000 exemption u/s 80TTB on interest. Always report in ITR; consult a CA for slabs.
How to Open a Fixed Deposit in Kotak Mahindra Bank
Online (Easiest):
1.Log in to Kotak Net Banking/Mobile App.
2.Navigate to ‘Deposits’ > ‘Open FD’.
3.Enter amount (≥₹5,000), tenure, nominee; choose payout type.
4.Confirm—funds debit from linked account; e-receipt instant.
Offline:
1.Visit any Kotak branch with KYC docs.
2.Fill the FD form, deposit cash/cheque/transfer.
3.Get physical receipt; track via app.
New customers? Open a savings account first online.
Premature Withdrawal & Loan Against FD
Premature exit is allowed (except Tax Saver’s 5-year lock):
- ≤180 days: No interest, no penalty.
- 181-364 days: 0.50% penalty + applicable rate.
- ≥365 days: 1% penalty + lower of booked/original rate.
Prefer a loan? Avail up to 90% overdraft at competitive rates, keeping FD intact for interest accrual.
Comparison: Kotak FD vs Post Office FD / Other Banks
Kotak holds its own against peers:
Feature/Bank | Kotak (General/Senior) | Post Office (General) | SBI (General/Senior) |
Top Rate (3-5Y) | 6.40%/6.90% | 7.10% | 6.50%/7.50% |
Min Deposit | ₹5,000 | ₹1,000 | ₹1,000 |
Tenure Range | 7 days-10Y | 1-5Y | 7 days-10Y |
Liquidity | Loan up to 90%, partial withdrawal | Limited, no loan | Loan up to 90% |
Online Open | Yes | Partial | Yes |
Kotak edges out with digital ease and flexibility, compared to the Post Office’s slightly higher rates but rigid access. Against SBI, Kotak offers better short-term yields; choose Kotak for private banking perks and urban convenience.
Frequently Asked Questions (FAQs)
- What is the highest FD rate in Kotak? Up to 6.60% p.a. general, 7.10% for seniors on 391 days-<23 months tenures.
- Can I break my Kotak FD before maturity? Yes, with penalties (0-1% based on tenure) and reduced interest.
- Is Kotak FD safe in 2025? Absolutely—DICGC insured up to ₹5 lakh, plus Kotak’s AA+ rating ensures reliability.
With fixed deposit rates Kotak peaking at 6.60% and enhanced fixed deposit interest in Kotak Mahindra Bank for seniors up to 7.10%, it’s a smart, secure way to beat inflation in 2025. Whether you’re a beginner saver or NRI, Kotak’s options fit diverse needs.
Compare tenures using their calculator, factor in your tax slab, and choose wisely—start with as little as ₹5,000 today. Ready to invest? Head to Kotak’s app or branch. What’s your FD strategy? Share in comments!