Kotak Bank FD Rates

Kotak Mahindra Bank, established in 1985, was the first Indian NBFC to convert into a commercial bank. Since then, it has managed to scale up its operations with a wide customer base. Furthermore, its attractive financial products make them an ideal choice for customers. One of the major products of the bank is the Kotak Mahindra Bank Fixed Deposit. They offer a wide range of FD schemes that will serve their dynamic customers’ needs. 

Moreover, with fixed deposits being the most sought-after investment tool for the majority of Indian customers, Kotak Mahindra Bank has devised its products to match popular demands. The Interest rates offered are competitive and attractive.

Kotak Bank Fixed Deposit scheme adheres to its traditional features and benefits whilst admonishing the financial product with an excellent customer service experience. Read about the Kotak Bank Fixed Deposit investment schemes, their types, benefits, and procedure to get started with them. 

Types of Kotak Bank Fix Deposit

Fixed Deposits schemes introduced by Kotak Mahindra Bank aim to assist its customers with the much-required capital gains with minimal to low risk, thereby providing a guaranteed return. Customers have the provision to choose the kind of Kotak Mahindra Bank Fixed Deposit that suits their needs efficiently. The types of Kotak Bank FD offered are listed as follows:

• Standard FD

The most common type of Kotak Mahindra Bank Fixed Deposit is the standard FD scheme. This ranges from 7 days to 10 years. Customers have the option of extending the tenure as well, which is applicable in special cases.

• Special FD

There are special Fixed deposits offered by Kotak Mahindra Bank, which provides customers with the option to choose specialised durations. They also incorporate higher interest rates, making it an attractive option for customers.

• Tax Saving FD

Another great option for the applicants is the Tax Saving Kotak Mahindra Bank Fixed Deposits. These offer tax benefits for customers that are mentioned in Section 80C of the Income Tax Act. There is a lock-in period of 5 years before which investors cannot make any withdrawals.

• Floating FD

Floating fixed deposits by Kotak Mahindra Bank offers its customers the option of availing of flexible interest rates. This will balance out the associated risk throughout the dynamic market rate structure. The interest rates compound every regular interval making it an attractive option for investors.

Features and Benefits of Kotak Bank Fixed Deposit

Kotak Mahindra Bank FD scheme come with various features and benefits. The financial institution has carefully designed these to meet more financial needs of the applicants. Here are some features and benefits of opening a Kotak Mahindra Bank Fixed Deposit account.

• A customer has the provision to choose from various tenure ranges
• Attractive interest rates
• Customers can start investing with INR 5000. 
• There is the flexibility of choosing the interest return frequency
• Availability of online banking tools such as mobile banking and net banking
• Provision to make premature withdrawal 
• Applicants can nominate a relative in case of demise 
• There is a sweep-in facility available 
• Kotak enables investors to have a diversified portfolio. 

Benefits of Kotak Mahindra Bank Fixed Deposits

There are various advantages of opening a Kotak Mahindra Bank Fixed Deposit account. Some of them are listed below.

• Fixed deposits are usually risk-free and assure a return
• Kotak Bank offers a fast and hassle-free online application process
• There are provisions to avail of an overdraft facility with the Kotak Mahindra Bank FD scheme applicable as per the duration.  
• Premature withdrawal is also possible with the Kotak bank FD scheme

How to Choose the Right Kotak Bank Fixed Deposit

Choosing the right Kotak Mahindra Bank Fixed Deposit requires an understanding of your financial situation. This entails that assessing one’s needs and capacity can help make the right financial decision. Furthermore, the initial stage of investing in Kotak Mahindra Bank Fixed Deposit means choosing how one is deploying their capital. This can be a recurring payment or a one-time lump sum payment. Customers can choose a recurring deposit account in the case of the former and a Kotak Bank FD scheme in the case of the latter. With Kotak bank FD schemes, customers can choose whether they need a tax-saving scheme with locked-in tenure or perhaps a specialised FD where attractive interest rates are offered. 

Who is Eligible to Open a Kotak Bank Fixed Deposit Account?

The list of eligible individuals that can open a Kotak Bank Fixed Deposit account is as follows.

• Indian nationals 
• NRIs (non-resident Indians) 
• Senior citizens 
• Members of a HUF, and 
• Minors under guardianship

Documentation Required - Kotak Bank Fixed Deposit

Documentation is an integral part of the process of applying for a Kotak Mahindra Bank fixed deposit scheme. The major avenues that will be considered are identification and residential proofs. Some of the documents that will be required are as follows.

• Identification Proof can be your passport, Aadhaar card, driving license, government-issued identity documents, or senior citizen ID card. 
• For residential proof, applicants can provide a passport, Aadhaar card, driving license, voter ID card, or NREGA job card approved by government authorities. 
• Some other essential documents that will be required include the fixed deposit application form, form 15G, form 15H, and sweep-in form.

How is the Interest Rate Calculated on Kotak Bank Fixed Deposit?

The computation of interest rates on Kotak Mahindra Bank Fixed Deposits is based on a mathematical formula that incorporates the principal amount, maturity tenure, interest rate, and compounding rate. 

Furthermore, there are a couple of ways to calculate the interest rate. The first is the simple interest, and the second is the compound interest. The former can be arrived at by using the formula below,

Interest = p x r x t / 100

Here, 

• P stands for principal, 
• R stands for rate of interest, and 
• T stands for tenure.

The latter can be computed using the formula,

a = p (1 + r / n ) ^ nt

Here, 

• A stands for the final amount, 
• P stands for the principal amount,  
• R stands for rate of interest, 
• N stands for the number of times interest is compounded, and
• T stands for a duration of the investment.

Kotak Bank FD Returns Based on Investment Amount

It can be beneficial to know what the returns structure will look like with the help of the online Kotak Mahindra Bank FD calculator. This will showcase the yearly returns based on the initial investment and the interest rate applied. The online tool will consider inputs such as interest rate, duration, and investment amount. 

In this example given below, the assumed capital is INR 2,00,000 for a duration of 5 years. With the interest rate set as 5.90%, compounded monthly, here is a table representing the closing balance amount computed.

Compare Kotak Bank Fixed Deposit Returns with Top Banks

The Kotak Mahindra Bank Fixed Deposit interest rates range from 2.50% to 5.90% for regular citizens and 3.00% to 6.40% for senior citizens. The table below shows some top banks’ fixed deposit rates. This comparison can help a customer assess whether the fixed deposit rate offered by a certain bank is suitable for their financial needs and capacity.

How to Open a Kotak Bank FD Account

There are a few ways by which one can open a Kotak Mahindra Bank FD account. This includes both online and offline ways. Considering the advancement in technology, customers have the provision to deal with paperwork and documentation online from the comfort of their homes. Here is how one can open a Kotak Bank Fixed Deposit online. 

Mobile Banking App

Users can download the Kotak Bank mobile banking app from the App Store or Play Store. With the application, log into your account by verifying the registered mobile number and bank account number. Proceed to go through the Banking section. Applicants will be able to select the Kotak Mahindra Bank Fixed Deposit option. Select the Open Fixed Deposit option available therein. 

Net Banking 

Another option for the applicants is to access the online net banking facility. Start by logging in to your account via a registered mobile number. If there is already an existing account, log in with the username and password. You also have the option to create a new account. From the account, head to the investment section, where you will find the Kotak Mahindra Fixed Deposit option. Proceed to open a fixed deposit account therein.

Branch

The traditional method of visiting a branch to avail of the services of any financial institution is still intact. Applicants can visit the nearest Kotak Mahindra Bank branch to open their fixed deposit account. They would be required to fill out an application form. It will be convenient to keep passport-size photographs and a pen handy along with photocopies of identity documents.