Kotak Bank FD Rates for senior citizens 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 Kotak Mahindra Bank FD interest rates than regular FDs, helping retirees grow their savings safely. Kotak 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.

Key Benefits of Kotak Mahindra Bank Senior Citizen FD

Kotak Mahindra Bank offers several benefits to senior citizens, such as higher FD interest rates and many more. Read the content below to understand better:

• Attractive Interest Rates: The Kotak Bank FD rates for senior citizens are comparatively higher than those for regular citizens og 0.50%, they start from 3.25% to 7.10% per annum.
• 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.
• 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.
• 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.
• 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.

Kotak Mahindra Bank FD Interest Rates for Senior Citizens

The table shows Kotak Bank FD rates for senior citizens for the different tenures for amounts below 3 crores.

Kotak Mahindra Bank FD Rates for Senior Citizens for Domestic Callable (Below 3 crore)

*Kotak Mahindra Bank Senior Citizen FD interest rates w.e.f. 20th Aug 2025

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

   • NetBanking or Mobile Banking Application: Access your account by logging in to
   • Navigate to FD Section: Go to the 'Deposits' or 'Investments' section and select the option to open a new 'Fixed Deposit'.
   • Enter Details: Input the amount you wish to deposit, choose the tenure, and specify the interest payout frequency.
   • Confirm and Fund: Review all the details, confirm the transaction, and the amount will be debited from your linked savings account to create the FD.
   • Confirmation: You will receive an instant confirmation, and your FD will be created.

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 Bank FD rates for senior citizens offer higher interest rates (0.50% more than regular FDs). While premature withdrawals are generally allowed, they may incur a penalty. Key benefits include the option for an overdraft facility against the FD for quick access to funds and the Kotak ActivMoney feature, which automatically sweeps idle savings into a higher-interest FD, a low minimum deposit of ₹5,000, and flexibility. However, it's important to note that the senior citizen interest benefit is typically not applicable to FDs created through the ActivMoney feature.