Founded in 1985, Kotak Mahindra Bank is one of the fastest-growing commercial banks in India. It provides a wide range of finance products and services to customers through its commercial, personal, and corporate banking portfolio. One such widely known product is Kotak tax saving FD, a savings investment plan that provides attractive interest rates to customers along with tax saving opportunities.
Read along to learn more about this FD scheme, its features, benefits, and other associated details.
Interest Rates on Kotak Tax Saving FD 2024
The following table mentions the Kotak Bank tax saver FD rates for citizens:
| Tenure | General Citizen | Senior Citizen |
| 5 years | 6.20% p.a. | 6.70% p.a. |
Features of Kotak Tax Saving FD
Here is a table that highlights the main features of Kotak tax saving FD:
| Account type | Term Deposit (TD) or Special Term Deposit (STD) |
| Minimum Amount | ₹100 |
| Maximum Amount | ₹1.5 lakhs |
| Minimum Tenure | 5 years |
| Maximum Tenure | 10 years |
| Premature withdrawal | Not available before 5 years |
| Loan facility | Not available |
| Nomination facility | Available |
How to Open a Kotak Tax Saving FD Online?
Follow the below-mentioned simple steps to open a Kotak tax saving FD online:
- Step 1: Visit the official website of Kotak Mahindra Bank.
- Step 2: Log into your account using the username and password.
- Step 3: Under the ‘Banking’ tab, select ‘Deposits’.
- Step 4: Select the ‘Open a Fixed Deposit’ button.
- Step 5: Provide the information required.
- Step 6: Press the ‘Submit’ button.
You will receive a confirmation message or mail for opening your tax-saving FD with Kotak Mahindra Bank.
Kotak Tax Saving FD Scheme Eligibility
To avail the Kotak Mahindra Bank tax saver FD interest rates, you need to meet the following eligibility criteria:
- Indian citizens
- NRIs (non-resident Indians)
- Senior citizens
- Members of Hindu Undivided Family (HUF)
- Minors along with their parents
Documents Required to Open a Kotak Tax Saving FD Scheme
Here are the essential documents you are required to open a Kotak tax saving FD scheme:
- Address Proof – Bank Statement, Aadhaar Card, Utility Bills, Passbook, etc.
- Identity AND Signature Proof – PAN Card, Driving Licence, Passport, etc.
- Four recent passport-size photographs
Benefits of Kotak Tax Saving FD Scheme
The following highlights the key benefits of Kotak tax saving FD:
- You can create this FD with a minimum deposit of just ₹100.
- Under Section 80C of the Income Tax Act, 1961, you are eligible to claim a deduction of around ₹1.5 lakhs.
- You get triple safety benefits by investing in this type of FD scheme.
- Senior citizens enjoy a higher interest rate on these deposits.
Terms and Conditions of Kotak Tax Saving Scheme
Here is a list of terms and conditions of Kotak tax saver FD:
- These tax-saving fixed deposits have a mandatory lock-in period of 5 years.
- You can invest in these deposits through public and private sector banks.
- Joint holders are allowed, but only the primary holder gets the tax benefit.
- The interest earned is taxable based on the investor’s tax bracket, and TDS is applicable. However, submitting Form 15G (or Form 15H for senior citizens) can help avoid TDS.
- Interest is paid quarterly for reinvestment purposes.
Final Word
In conclusion, Kotak tax saving FD is a smart choice for saving on taxes. With its fixed returns and tax benefits, it provides a simple and reliable way to grow your money while enjoying tax advantages. You can consider it as an ideal option to meet both your financial goals and save on taxes effortlessly.
FAQ
No, it is not mandatory to nominate someone to open a Kotak tax-saving FD account. However, it is always advisable to have a nominee for this type of FD account.
Here are the documents senior citizens are required to open a Kotak tax saving FD:
– Pension Payment Order
– LIC Policy
– PSU Issued ID cards
– Defence ID cards (if applicable)
– Government ID cards
– Senior Citizen cards issued by Indian Railways or Indian Airlines
Here are the implications of creating a Kotak tax-saving FD account without a PAN card:
– Higher Tax Deducted at Source (TDS) rates will be applicable.
– No TDS will be credited from the Income Tax department.
– Your TDS exemption certificates will be considered invalid.
– The TDS will be recovered at 20% or might be at a higher rate.
