Kotak Mahindra Bank Tax Saving FD

What is a Kotak Bank Tax Saving Fixed Deposit?

A Kotak Mahindra Bank Tax Saving Fixed Deposit is an investment scheme that combines tax benefits with low-risk fixed returns. Investors can start with a minimum deposit of ₹5,000, and while they may invest more, only up to ₹1.5 lakh qualifies for deduction under Section 80C. The deposit comes with a mandatory lock-in period of 5 years, during which premature withdrawal is not allowed. At maturity of the Tax Saving FDs, investors receive their principal and the accumulated interest, making it a secure long-term savings option.

How Does a Kotak Mahindra Tax Saving FD Work?

Kotak Mahindra Bank Tax Saving FD is beneficial for investors and works as follows:

• Open an FD: Log in to Kotak Mahindra Bank’s Net Banking or Mobile Banking platform, or visit your nearest branch to open a Tax Saving FD.
• Choose the Amount of Investment: Start with a minimum of ₹5,000. Although there is no set limit on the deposit, one can claim the tax deduction of only ₹1.5 lakhs in a financial year under Section 80C of the Income Tax Act.
• Fixed Lock-in Period: The deposit has a compulsory 5-year lock-in. During this period, partial or premature withdrawal is not allowed.
• Know the Interest Rates: Earn 6.25% p.a. if you’re a regular investor and 6.75% p.a. if you’re a senior citizen.
• Choose Interest Payout: Investors can receive interest quarterly, or let it compound and be paid at maturity (cumulative). 
• Maturity: At the end of the fixed tenure, the principal deposit and the accumulated interest are credited to your linked savings account with the bank.

Kotak Mahindra Bank Tax Saving FD Highlights

Here are the main features of the Tax Saving FD Kotak Mahindra Bank at a glance:

How to Open a Kotak Mahindra Bank Tax Saving FD?

There are two ways to open a Kotak Mahindra Tax Saving Fixed Deposit. It can be done through an online application process or by visiting the nearest Kotak Mahindra Bank branch. The steps for both methods are as follows.

1. Online Application

   • Net Banking / Mobile Banking Login: Enter your Kotak Mahindra Bank user name and password to log in.
   • FD Section: Click on the New FD option. 
   • Select Tax Saving FD: Select the Tax Saving Fixed Deposit among the other given deposits.
   • Enter Deposit Details: Fill in the investment amount (minimum ₹5,000 and up to ₹1.5 lakh for tax benefits under Section 80C).
   • Select Tenure & Interest Payout: Tax saving FD has a predetermined lock-in of 5 years. Choose whether you want a quarterly interest payout or reinvestment at maturity.
   • Confirm & Submit: Confirm details and submit. This will be debited from your linked account, and your FD receipt will be created immediately.

2. Offline Application

   Kotak Mahindra Tax Saving Fixed Deposit can also be opened offline if you want to open an FD in the bank. Follow these steps to open a Kotak Mahindra Tax Saving FD.

   • Visit the Closest Branch: Visit any Kotak Mahindra Bank branch near you.
   • Collect the FD Application Form: Request the Tax Saving Fixed Deposit form at the counter.
   • Fill out the Form: Enter in personal information, amount (minimum of ₹5,000 and a maximum of ₹1,50,000 to get the benefit of 80C), and tenure (fixed 5 years).
   • Choose Interest Payout Option: Select whether you want quarterly interest or payout at maturity.
   • Submit Your Documents and Pay: Upload the KYC documents (if applicable), and you can make payment by cheque, cash, or an account debit.
   • Receive FD Receipt: Once processed, the bank will give you an FD receipt as proof of your investment.

Who Should Consider a Kotak Mahindra Bank Tax Saving FD?

The following categories of investors can invest and take advantage of a Tax Saving Fixed Deposit with Kotak Mahindra Bank:

• Looking for Tax Benefits: Investors aiming to reduce their taxable income under Section 80C while keeping their money secure should consider this FD.
• Resident Individuals: Kotak Mahindra Tax Saving FD can be opened by any Indian with a low-risk fixed interest rate.
• HUFs: Hindu Undivided Families (HUFs) can also make investments and claim tax benefits.
• Risk-Averse Investors: Investors who favour fixed and certain returns compared to market-linked risks will feel suitable to invest in this FD.
• Long-Term Planners: This FD applies to any investor ready to inculcate the habit of disciplined savings in a 5-year locked-in period due to its safety aspects and the tax-saving elements.

TDS on Kotak Mahindra Bank Tax Saving FD

The Kotak Mahindra Bank Tax Saving FD offers depositors tax benefits under Section 80C while providing a rate of interest of tax-saving FD of 6.25% p.a. for regular depositors and 6.75% p.a. for senior citizens. However, the interest earned is taxable. TDS is applicable if the total interest from all Kotak Mahindra FDs in a financial year exceeds ₹50,000 for regular depositors or ₹1,00,000 for senior citizens. PAN submission is mandatory for accurate TDS credit; failure to provide it may result in TDS being deducted at 20%. Eligible customers may submit Form 15G and 15H to avoid TDS if their total income falls below the taxable threshold.

Key Takeaways

The Kotak Mahindra Tax Saving FD provides depositors with assured returns and tax benefits under Section 80C. The scheme has a fixed 5-year lock-in, offering an interest rate of 6.25% p.a. for regular depositors and 6.75% p.a. for senior citizens. Investors can opt for quarterly payouts or reinvestment at maturity; premature withdrawal is not allowed. With attractive FD Interest Rates and low-risk investments, it is an ideal option for disciplined savings.