Kotak Mahindra Bank Fixed Deposit Interest Rates 2025 - Latest Kotak FD Rates

A Kotak Mahindra bank FD lets you invest a lump sum for a fixed period and earn guaranteed returns at a pre-decided interest rate. However, the Kotak Mahindra bank FD interest rate you get is not the same for everyone. It varies mainly based on:

1. Tenure
   • Longer tenures often carry higher rates, though banks may offer peak rates at specific mid-tenure buckets.
2. Deposit amount
   • Retail deposits (below ₹3 crore) and bulk deposits (₹3 crore and above) follow separate rate schedules.
3. Customer category
   • Senior citizens earn extra interest on most slabs.
4. Special FD schemes
   • Kotak may run special-tenure offers that temporarily increase FD returns.

Kotak FDs offer a blend of security and flexibility:

• Guaranteed returns: interest rate remains fixed for the entire tenure.
• Flexible tenure choices: from 7 days to 10 years.
• Low minimum amount: generally starts around ₹5,000 (can vary by channel/product).
• Premature withdrawal: allowed in most regular FDs (penalty may apply).
• Loan/overdraft against FD: access liquidity without breaking your deposit.
• Nomination facility for easy transfer to nominee.
• Auto-renewal option on maturity.

These make Kotak fixed deposits useful for conservative investors who want stability plus decent yields.

Kotak Mahindra Bank offers multiple FD products depending on your goal:

1. Regular Fixed Deposit

   The standard fixed deposit scheme with different tenures and payout styles:

   • Cumulative FD (interest reinvested and paid at maturity)
   • Non-cumulative FD (interest payout at fixed intervals)
2. Tax Saver FD

   Kotak Tax Saver FDs allow deduction under Section 80C of the Income Tax Act (up to ₹1.5 lakh per year).

   • Lock-in: 5 years
   • Rates (2025):
     • General: around 6.25% p.a.
     • Senior citizens: around 6.75% p.a.

   Good for tax planning, but not suitable if you might need early liquidity.

3. NRE / NRO Fixed Deposits

   Kotak provides NRE/NRO term deposits for NRIs. Rates are broadly aligned to domestic slabs, with some category-specific rules. Senior citizen uplift usually does not apply to NRE/NRO FDs.

4. Sweep-in / ActivMoney (Linked FD)

   Kotak also has a “sweep-in facility” where excess savings balance automatically moves into an FD to earn better interest, and can be swept back when needed. This offers the liquidity of savings with FD-like returns (scheme conditions apply).

When choosing between FD types, align with your cash-flow needs:

1. Cumulative FD (Best for Growth)
   • Quarterly compounding (common format)
   • Interest reinvested
   • Maturity = principal + interest
2. Non-Cumulative FD (Best for Regular Income)

   Interest is paid periodically instead of being reinvested:

   • Monthly
   • Quarterly
   • Half-yearly
   • Yearly

   This suits people who want predictable cash flow, especially senior citizens using FDs as income support.

Kotak Mahindra Bank is a scheduled commercial bank, and like all Indian banks, eligible deposits are covered by DICGC insurance:

• Coverage: up to ₹5 lakh per depositor per bank (including savings + FD combined).

That means your rates on fixed deposits come with a robust safety net for small and mid-sized investments.

You can open an FD with Kotak if you are:

• Resident Indian individual
• Senior citizen
• Joint account holder
• NRI (via NRE/NRO deposits)
• JHUF, firms, companies, trusts (as per bank rules)

Opening a Kotak bank FD is straightforward. Usually required:

For resident Indians

• PAN card
• Aadhaar / Passport / Voter ID / Driving License
• Address proof (if required)

For NRIs

• Passport + visa
• Overseas address proof
• NRE/NRO eligibility documents

Online booking uses existing KYC linked to your Kotak account.

FD interest is fully taxable under “Income from Other Sources”.

TDS thresholds (standard rules)

• Regular citizens: TDS if annual interest exceeds ₹40,000
• Senior citizens: threshold ₹50,000

How to avoid TDS (if eligible)

• Submit Form 15G (regular citizens)
• Submit Form 15H (senior citizens)

Even if TDS is deducted, you must report the full interest in your ITR and claim refunds if applicable.

Kotak allows premature closure on most regular FDs, but:

• you may earn interest at the applicable lower slab
• a small penalty can apply
• special schemes may restrict premature withdrawal

So if you’re choosing an FD for a strict goal, pick a tenure you can hold comfortably.

Instead of breaking your FD, you can borrow against it:

• Loan value: up to ~90% of FD principal
• Rate: FD rate + small spread
• Benefit: liquidity without losing your locked-in interest

This is helpful for emergency needs while keeping your investment intact.

1. Net Banking
   • Login → Deposits → Open Fixed Deposit → choose tenure & amount → confirm.
2. Kotak Mobile Banking App
   • Deposits / Fixed Deposits → enter details → submit.
3. Branch Visit
   • Submit KYC + deposit amount and open FD offline.

• Compare slabs before locking in

  Mid-tenures often offer the best kotak fd rates.

• Factor senior uplift

  Seniors should prioritize slabs where the extra 0.5% gives a meaningful edge.

• Match tenure to your goal

  Don’t stretch the tenure only for a tiny rate bump if your timeline is shorter.

• Use the FD calculator

  Even a small interest difference can change maturity noticeably over a few years.