Kotak Mahindra Bank pays interest rates to the tune of 3.50-6.80 per cent to customers on fixed deposits up to Rs 2 crore. These fixed deposits, also known as retail term deposits, are available in 20 maturity options ranging from seven days to 10 years at the private sector lender. Kotak Bank pays higher returns to senior citizen retail depositors compared to other customers. For example, on a fixed deposit up to Rs 2 crore of one year, ICICI Bank pays interest at the rate of 6.80 per cent to senior citizen customers and 6.30 per cent to other customers, according to its website - kotak.com. (Also Read: Compare Bank FD Rates Paid By Peers Here)
Kotak Mahindra Bank pays the following interest rates on retail fixed deposits:
Kotak Mahindra Bank Fixed Deposit Rates
| Maturity Period | Interest Rate (With Effect From November 27) | |
|---|---|---|
| Public | Senior Citizen | |
| Seven to 14 days | 3.50% | 4.00% |
| 15 to 30 days | 4.00% | 4.50% |
| 31 to 45 days | 4.75% | 5.25% |
| 46 to 90 days | 5.25% | 5.75% |
| 91 to 120 days | 5.40% | 5.90% |
| 121 to 179 days | 5.40% | 5.90% |
| 180 days | 5.75% | 6.25% |
| 181 to 269 days | 5.80% | 6.30% |
| 270 days | 5.80% | 6.30% |
| 271 to 363 days | 6.05% | 6.55% |
| 364 days | 6.05% | 6.55% |
| 365 to 389 days | 6.30% | 6.80% |
| 390 days (12 months and 25 days) | 6.30% | 6.80% |
| 391 days to less than 23 months | 6.30% | 6.80% |
| 23 months | 6.30% | 6.80% |
| 23 months and one day to less than two years | 6.30% | 6.80% |
| Two years to less than three years | 6.25% | 6.75% |
| Three years and above but less than four years | 6.20% | 6.70% |
| Four years and above but less than five years | 6.20% | 6.70% |
| Five years and above up to and inclusive of 10 years | 6.10% | 6.60% |
| (Source: kotak.com) | ||
(Kotak Mahindra Bank Interest Rates: On fixed deposits of two years, Kotak Mahindra Bank gives a 6.75 per cent return to senior citizens and 6.25 per cent to other customers, according to its website)
Investment in fixed deposits with a maturity period of five years offers income tax benefit up to Rs 1.5 lakh per financial year under Section 80C of the Income Tax Act. Interest income, however, is subject to income tax.
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