Kotak Mahindra Bank FD rates currently range from 2.75% to 6.80% p.a. for regular customers and up to 7.30% p.a. for senior citizens on deposits below ₹3 Crore.
The last updated: 10th June 2026 and work for Domestic, NRO, NRE Fixed Deposits.
You can verify the latest rates from the official Kotak Bank FD Interest Rate Page .
| FD Tenure | Regular | Senior Citizen |
|---|---|---|
| 7 Days – 45 Days | 2.75% – 3.00% | 3.25% – 3.50% |
| 46 Days – 179 Days | 3.50% – 4.25% | 4.00% – 4.75% |
| 180 Days – 364 Days | 5.00% – 6.00% | 5.50% – 6.50% |
| 1 Year | 6.50% | 7.00% |
| 15 Months – Less than 2 Years | 6.70% | 7.20% |
| 2 Years – Less than 3 Years | 6.80% | 7.30% |
| 3 Years – Less than 5 Years | 6.40% | 6.90% |
| 5 Years to 10 Years | 6.25% | 6.75% |
📌 Important Kotak FD Points
- Minimum FD tenure starts from 7 days
- Senior citizens get up to 0.50% extra interest benefit
- Premature withdrawal is allowed on eligible retail FDs as per bank rules
- Deposits above ₹3 Crore follow a separate interest rate structure
- Domestic, NRO and NRE fixed deposits are available
💡 FD Tip: The strongest rate currently sits in the 2 to 3 year tenure bucket. Interestingly, extending the FD beyond 3 years does not increase returns, so always compare the rate before choosing a longer lock-in period.
📌 Quick Insight: Deposits below 181 days generally earn simple interest. For longer tenures, Kotak applies quarterly compounding, which helps increase the final maturity value over time.
⚠ Important: While many investors automatically select 5-year FDs, Kotak’s current rate structure rewards medium-term deposits more. Always check the maturity amount instead of focusing only on the tenure length.
Read Below: FD Features • Premature Withdrawal Rules • And types
1. Top 10 Features of Kotak Mahindra Bank Fixed Deposits
Kotak FD is popular because it gives a mix of good returns, safety, and flexibility.
- Premium Interest Rates: Earn up to 6.80% p.a. on select FD tenures.
- Extra Benefit for Senior Citizens: Get an additional 0.50% interest, taking returns up to 7.30% p.a.
- Easy Premature Withdrawal: No premature withdrawal penalty within the first 180 days.
- ActivMoney Auto Sweep: Extra money in your savings account can automatically move into an FD and earn higher interest.
- Loan Against FD: Get an overdraft or loan of up to 90% of your FD amount without breaking the FD.
- Flexible Interest Payout: Choose cumulative, monthly, or quarterly interest payment options.
- Tax Saving Option: Invest in a 5-year Tax Saver FD and claim benefits under Section 80C.
- Start Small: Open an FD with just ₹5,000.
- DICGC Insurance Cover: Deposits are insured up to ₹5 lakh per depositor per bank.
- Strong Safety Rating: Kotak FDs are backed by a CRISIL AAA (Stable) rating.
- Regular Placements: Safe-haven growth scheme initiating at a entry floor of ₹5,000.
Real Example: Suppose you invest ₹1 lakh in a 2-year Kotak FD at 6.80% p.a.. At maturity, you can receive around ₹1,14,321 with quarterly compounding.
My Experience While Comparing FDs: Many people only check the interest rate. But features like loan against FD, auto-sweep facility, and easy withdrawal can be equally useful when you suddenly need money. That’s why Kotak FD works well for both first-time and experienced investors.
2. Premature Withdrawal & Penalty Rules
If you break your Kotak FD before maturity, the interest rate may be reduced depending on how long the FD remains active.
- Within 180 Days: No premature withdrawal penalty is charged.
- 181 Days to 364 Days: A 0.50% penalty is deducted from the applicable interest rate.
- 365 Days or More: A 1.00% penalty is deducted from the applicable interest rate.
Simple Example
Suppose you invest ₹1,00,000 in a Kotak FD at 6.80% p.a. for 2 years. If you decide to withdraw the money after 15 months, the bank may apply a 1.00% penalty on the applicable interest rate.
- Original FD Rate: 6.80%
- Penalty: 1.00%
- Effective Rate: 5.80%
Instead of earning around ₹8,500–₹9,000 interest for 15 months, your actual earnings may reduce to around ₹7,200–₹7,500 after the penalty. The exact amount depends on the tenure and rate applicable on the withdrawal date.
3. Types of Kotak Mahindra Bank Fixed Deposits
Kotak Mahindra Bank offers different FD options for regular Indian citizens. Each FD is designed for a specific savings or investment goal –
- Regular Fixed Deposit
- Suitable for long-term savings and guaranteed returns.
- Tenure ranges from 7 days to 10 years.
- Choose cumulative, monthly, or quarterly interest payouts.
- Tax Saving Fixed Deposit
- Helps save tax under Section 80C.
- Comes with a 5-year lock-in period.
- Premature withdrawal and loan facilities are not available.
- ActivMoney (Auto-Sweep FD)
- Automatically transfers extra savings account balance into an FD.
- Helps earn higher interest while keeping funds accessible.
- Sweep-In Deposit
- Linked to your savings account.
- If your account balance falls short, the required amount is automatically taken from your FD.
- Margin Fixed Deposit
- Used as collateral for trading accounts or high-limit credit facilities.
- Commonly used by active investors and traders.
Real Example: Suppose you keep ₹2 lakh in your savings account and activate ActivMoney. If your savings balance crosses the set limit, the extra amount automatically moves into an FD and starts earning higher interest. This helps your money work harder without any manual effort.
Expert Tip: If you are planning to build your credit score and don’t qualify for a regular credit card yet, Kotak also offers FD-backed credit card options. You can create an FD, get a card against it, use the card for small monthly expenses, and pay the bill on time. Many first-time users start their credit journey this way while their FD continues earning interest in the background.
4. How to Open a Kotak Mahindra Bank FD Online
(a.) For Existing Kotak Customers
If you already have a Kotak Bank account, you can open an FD in just a few minutes.
- Log in to the Kotak Mobile Banking App or NetBanking.
- Go to Invest or Apply Now and select Fixed Deposit.
- Enter the FD amount (minimum ₹5,000) and choose your tenure.
- Select Cumulative or Monthly/Quarterly Interest Payout.
- Verify the details and complete authentication using MPIN or OTP.
Your FD is created instantly, and the digital receipt is available immediately.
(b.) For New Customers (No Kotak Account Required)
You can also open a standalone Kotak FD without opening a savings account.
- Visit the official Kotak FD portal and click Open FD Now.
- Enter your Aadhaar-linked mobile number and verify it using OTP.
- Provide your PAN and Aadhaar details.
- Complete the Video KYC process by showing your original PAN card and signature.
- Transfer the FD amount through UPI or NetBanking from any bank account.
Newbie Tip: Keep your PAN card, Aadhaar-linked mobile number, and a stable internet connection ready before starting. The Video KYC usually takes only a few minutes, but it must be completed successfully to activate the FD.
5. Kotak FD vs Top 5 Banks
If you compare Kotak FD rates with other large banks, Kotak currently offers one of the highest returns among major private and public sector banks.
| Bank | Highest FD Rate | Senior Citizen Rate |
|---|---|---|
| Kotak Mahindra Bank | 6.80% | 7.30% |
| HDFC Bank | 6.50% | 7.00% |
| ICICI Bank | 6.50% | 7.10% |
| Axis Bank | 6.45% | 7.20% |
| SBI | 6.45% | 6.95% |
(a.) What Makes Kotak Different?
- Kotak offers up to 0.30% to 0.35% higher interest than HDFC Bank, ICICI Bank, and SBI on select tenures.
- Deposits held for up to 180 days can be closed without a premature withdrawal penalty.
- All these banks provide DICGC insurance cover up to ₹5 lakh per depositor per bank.
(b.) Real Example
Suppose you invest ₹10 lakh in an FD.
- At Kotak’s 6.80% rate, you can earn about ₹68,000 interest in one year.
- At HDFC or ICICI’s 6.50% rate, you can earn about ₹65,000 interest.
That’s roughly ₹3,000 extra interest every year on the same investment amount.
My View: If you already bank with HDFC, ICICI, or SBI, the difference may not feel huge. But if you’re opening a fresh FD and want slightly better returns without moving to a smaller bank, Kotak is one of the stronger options to consider.
Frequently Asked Questions
Which bank gives 9.5 interest on FD?
No mainstream commercial bank offers 9.5%. Niche institutions like Unity Small Finance Bank pay up to 9.50% p.a. exclusively to senior citizens.
What is the FD interest rate in Kotak Bank?
Active Kotak Bank retail interest rates scale from 2.75% to 6.80% p.a. for general investors and up to 7.30% p.a. for seniors.
Which bank gives an 8% FD rate?
Several top-tier Small Finance Banks, including Suryoday, Utkarsh, and Equitas, offer promotional yields touching 8.00% to 8.50% p.a. on mid-term horizons.
What is the Kotak FD interest rates calculator?
Skip the manual compound mathematics by using the official digital Kotak FD Calculator to simulate exact maturity totals instantly.
What schemes give Kotak FD interest rates monthly payout?
You can opt for monthly payout streams; interest drops into your account at discounted, non-compounded rates calculated against the baseline card slab.
How to get Kotak Bank FD rates for senior citizens PDF?
The official master rate ledger sheet can be downloaded directly from the Kotak Bank Terms Repository to verify all micro-tenure interest curves.
What is Kotak Mahindra Savings Account interest rate?
Baseline savings interest streams scale up to 4.00% p.a., depending dynamically upon the daily balance tier maintained inside your account.
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