Kotak Mahindra Bank Senior Citizen FD Rates 2025

What is a Kotak Mahindra Bank Senior Citizen FD?

A Kotak Mahindra Bank Senior Citizen Fixed Deposit is specially designed for individuals aged 60 years and above. It offers higher interest rates than regular FDs, helping retirees grow their savings safely. Kotak Mahindra Bank offers monthly, quarterly, and cumulative interest payout options. Monthly and quarterly payouts provide a steady income stream, helping senior citizens manage regular expenses like medical bills. The cumulative option allows the interest to be reinvested and paid out at maturity.

Check the latest Kotak Mahindra Bank FD rates and explore the key features and steps to open a Senior Citizen Fixed Deposit.

Key Benefits of Kotak Mahindra Bank Senior Citizen FD

Kotak Mahindra Bank offers several benefits to senior citizens, such as higher interest rates, flexible payout options, and an auto-renewal facility.

1. Flexible Tenure Options: 

   Senior citizens can choose FD durations from 7 days to 10 years with Kotak Mahindra Bank, making it easier to plan for both short-term needs and long-term goals.

2. Low Minimum Deposit Requirement: 

   Kotak Mahindra Bank allows senior citizens to easily open a fixed deposit, requiring a minimum amount of just ₹5,000. This makes it convenient for retirees to begin saving without the pressure of a large initial investment.

3. Auto-Renewal Facility: 

   With Kotak Mahindra Bank’s auto-renewal option, senior citizens can ensure their deposits continue earning interest without manual intervention. This feature is especially helpful for senior and super-senior citizens who might not prefer to visit a bank or could be less savvy in digital banking.

4. Kotak ActivMoney Feature: 

   This auto sweep-in feature transfers balances exceeding a set threshold in the savings account into a fixed deposit, offering interest rates of up to 7% per annum. The funds remain accessible if required.

5. Overdraft Facility Against FD: 

   Senior citizens may avail of an overdraft facility of up to 85% of the deposit value, eliminating the need to close the deposit prematurely in case of urgent financial requirements. Interest is charged only on the utilised amount.

6. Sweep-In and Sweep-Out Facility: 

   This facility links your fixed deposit with a savings account. When the savings account balance exceeds a set threshold (typically ₹25,000 or as specified by the bank), the surplus amount is transferred to a fixed deposit. This helps you earn better returns on idle funds. If the savings account requires funds, the amount is automatically withdrawn from the FD. This ensures liquidity without needing to close the deposit.

Kotak Mahindra Bank FD Interest Rates for Senior Citizens

Kotak Mahindra Bank offers higher interest rates on Fixed Deposits (FDs) for senior citizens compared to general customers.

Kotak Mahindra Bank FD Rates for Senior Citizens for Domestic (Callable)

*Kotak Mahindra Bank Senior Citizen FD interest rates w.e.f. June 9, 2025

Note: It is recommended to compare fixed deposit interest rates from top banks in India to find the best option that fits your financial goals.

How to Open a Kotak Mahindra Bank Senior Citizen FD?

Opening a Kotak Mahindra Bank Senior Citizen Fixed Deposit is simple. You can do it online through net banking or by visiting the nearest branch, whichever is convenient.

1. Online Method

   Through Net Banking:

   • Visit the Website: Open the official website of Kotak Mahindra Bank. 
   • Explore the Products Section: Once on the website, explore the Senior Citizen FDs under deposits.
   • Check Eligibility Criteria: Ensure you meet the eligibility criteria for opening a Senior Citizen FD with the Bank.
   • Select Senior Citizen FD: Choose a Senior Citizen FD option with the highest rates. Review the terms and conditions.
   • Enter the FD Amount and Tenure
   • Choose the Funding Source: If you already have sufficient funds in your savings account, you can use them to fund the FD. 
   • Provide KYC Details: As part of the application process, you must provide Know Your Customer (KYC) details.
   • Confirm and Submit: Review the details you entered and apply for the Senior Citizen Fixed Deposit.
   • Complete Verification: After applying, the Bank may require additional verification. This can be done online, or a representative from the Bank may get in touch with you for further verification. 
   • Confirmation and Receipt: You will receive a confirmation from the Bank and the FD receipt.

   Through the Kotak Mahindra Mobile app

   • Download the App: Download the Kotak Mahindra mobile app on your phone.
   • Log In: Log in using your login credentials.
   • Navigate to Fixed Deposit Section: On the menu section, click on 'Deposits', under which click on 'Fixed Deposit'.
   • Enter Deposit Details: Provide details such as the deposit amount, tenure, etc.
   • Upload Documents: Provide additional information and upload the necessary documents.
   • Verification and Start Deposit: The lender will verify the information, and if it is correct, you can start depositing a certain amount monthly into your FD account.

2. Offline Method

   • Visit the Nearest Branch: You can visit the nearest Kotak Mahindra branch with all the necessary documents. 
   • Get Assistance from Bank Staff: A representative from the bank will help you with the process of opening an FD account. 
   • Submit Documents and Application: Submit the documents along with the application form.
   • Account Activation: If all the details are correct, you can open an FD account with the bank.

Taxation on Kotak Mahindra Bank Senior Citizen FD Interest

Interest earned on Kotak Mahindra Bank Senior Citizen Fixed Deposits is taxable and added to your total income, taxed according to the Income Tax Act. From April 1, 2025, TDS is deducted only if the total interest in a financial year exceeds ₹1 lakh. Senior citizens can submit Form 15H to avoid TDS if their income exceeds the taxable limit. Under Section 80TTB, senior citizens can claim a deduction of up to ₹50,000 on interest earned from Kotak Mahindra Bank FDs.

Key Takeaways

Kotak Mahindra Bank provides senior citizen fixed deposits that can be conveniently opened online or at a branch, offering flexibility to individuals aged 60 and above. These deposits come with higher interest rates compared to regular FDs. One drawback is that non-withdrawable fixed deposits do not allow premature withdrawal, which may restrict access to funds during emergencies. Senior citizens should evaluate their need for liquidity before choosing this option.