Kotak Mahindra Bank NRI FD Rates

Kotak Mahindra Bank was established in 2003 with its headquarters in Mumbai. Since then, it has emerged as the third-largest Indian private sector bank and one of the most trusted financial institutions. The bank has a pan-India presence operating through 1600 branches and over 2500 ATMs. Kotak Mahindra Bank offers innovative products to its domestic and NRI clientele to operate under a comfortable digital environment in the retail banking sector.

Read more
Best Investment Options
  • Save upto ₹46,800 in tax under Sec 80C

  • Inbuilt Life Cover

  • Tax Free Returns Unlike FD

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Get Guaranteed returns along with life cover
invest in 100% Guaranteed Return Plans Tax benefits under sec 80C & No Tax on returns*
+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans", you agree to our Privacy Policy and Terms of Use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

Kotak Mahindra Fixed Deposits

Fixed Deposits or FD parks capital for a fixed tenure to earn interest. The FD helps the money grow gradually in alignment with the investor’s financial goals and objectives. These FDs are convenient to hold in both foreign currency and INR, attracting competitive interest rates for a safe and guaranteed capital appreciation. 

The bank provides a dedicated NRI channel to facilitate savings, investments, and transfer seamlessly. Let us check out what Kotak Mahindra Bank offers the NRI on the platter. 

Types of Kotak Mahindra Fixed Deposits

Kotak Mahindra Bank offers five products with innovative features. The savings accounts are classified under two categories – NRE and NRO. The fundamental difference between the two is that the former parks overseas earnings while the latter parks earnings from assets in India. 

Both are INR accounts with varying inbuilt features. The bank innovates by opening an NRE account even before the individual leaves the country using the visa and the work permit.

  1. Kotak Mahindra NRE FD

    The Non-Resident External FD is an Indian rupee account, where overseas earnings in foreign currency are converted to INR at competitive exchange rates. The account’s salient features are:

    • Eligibility
      • NRI:  People who reside abroad for employment, business, education, and assignments indefinitely.
      • PIO: A foreign citizen but once held an Indian passport, parents or grandparents are Indian citizens or spouse of a PIO/ Indian citizen.
      • Seafarer: Mariners employed abroad in overseas shipping companies
    • Account Opening: The NRI can open the account either singly or jointly with NRI/PIO. 
    • Minimum Deposit: Rs 50,000 is the minimum amount required to book the FD. 
    • Interest Payment: Kotak Mahindra Bank NRE Fixed Deposit Rates are at par with domestic FD rates. Interest on NRE FD is compounded quarterly.
    • Tenor: The minimum tenor is one year to earn interest and the NRI can stay invested for a maximum of ten years. 
    • Renewal: The NRE FD is renewed automatically on maturity with the original booking terms. 
    • Repatriation: The principal and the earned interest are fully and freely repatriable.
    • Taxation: The principal and the interest earnings are tax-free in India. 
    • Others: The bank provides Mobile and Net Banking facilities. 
  2. Kotak Mahindra NRO FD

    The Non-Resident Ordinary FD is an Indian rupee account booked through earnings from Indian assets like rent, dividends on investments, etc. The account is used for all local transactions and payments. The FD accounts critical features are:

    • Eligibility
      • NRI: Persons who reside abroad for employment, business, education, and assignments for an unspecified period.
      • PIO: A foreign citizen but once held an Indian passport, parents or grandparents are Indian citizens or spouse of a PIO/ Indian citizen.
      • Seafarer: Mariners employed abroad in overseas shipping companies
    • Account Opening: The account is opened either singly or jointly with NRI/PIO and resident Indian. 
    • Minimum Deposit: The minimum amount required to book the NRO FD is Rs 50,000. 
    • Interest Payment: Kotak Mahindra Bank NRE Fixed Deposit Rates are at par with domestic residents. Interest on NRO FD is compounded quarterly.
    • Tenor: The same as resident Domestic Deposits, starting from seven to a maximum of ten years. 
    • Renewal: The NRO FD is renewed automatically on maturity with the original booking terms. 
    • Repatriation: The earned interest is repatriable after payment of tax.
    • Taxation: The principal is tax-free, but the accrued interest is taxable under existent tax laws. 
    • Others: The bank provides Mobile and Net Banking facilities. 
  3. Kotak Mahindra FCNR (B) FD

    Foreign Current Non-Resident (FCNR) FD suggests the account is held only in foreign currency earned abroad. The Term Deposit can be booked in designated currencies only.  Other currencies deposited by the NRI are converted to the designated currency of choice at a competitive exchange rate. Let us check out the critical features:

    • Eligibility
      • NRI:  Persons who reside abroad for employment, business, education, and assignments indefinitely.
      • PIO: A foreign citizen but once held an Indian passport, parents or grandparents are Indian citizens or spouse of a PIO/ Indian citizen.
      • Seafarer: Mariners employed abroad in overseas shipping companies.
    • Account Opening
      • The standard banking channel must be used to book the FCNR (B) FD  by debiting an existing NRE account. 
      • The account is opened either singly or jointly with NRI/PIO. 
    • Designated Currency: The FCNR (B) FD is opened and maintained in the following designated currencies. 
      • US Dollars ($)
      • Euro (€)
      • Great Britain Pound Sterling (£)
      • Japanese Yen (¥)
      • Singapore Dollars ($)
    • Interest Payment
      • Kotak Mahindra Bank NRE Fixed Deposit Rates payable to FCNR (B) FD accounts are linked to London Interbank Offered Rate (LIBOR) notified by the RBI from time to time.
      • The currently applicable ceiling is LIBOR plus 200 bps for one to three years tenors and LIBOR plus 300 bps for over three years to five years. 
      • The payable interest on FCNR (B) FD is compounded every 180 days.
      • However, the interest is paid only when the minimum FCNR (B) tenor is one year.
    • Tenor: The minimum tenor is one year and the NRI can stay invested for a maximum of five years. 
    • Renewal: The FCNR (B) FD is renewed automatically on maturity with the original booking terms. 
    • Repatriation: The principal and the earned interest are fully and freely repatriable in the foreign currency of the NRI’s choice. 
    • Taxation: The principal and earned interest are exempted from Income Tax in India. 
    • Others: The bank provides Phone and Net Banking facilities. 

Kotak Mahindra Bank NRI FD Rates

The RBI has deregulated the interest payment regime providing the banks the freedom to chart their course within the overall policies articulated by the Central bank from time to time. Accordingly, the Kotak Mahindra Bank NRI FD Rates for the NRE and NRO Rupee Term Deposits are at par with the rates offered to Resident Domestic Deposits. 

In FCNR (B) FD, the interest rate is designed on the LIBOR, as described earlier. The interest rate for the NRE and NRO FD is further based on whether the booked Term Deposit permits the Premature Withdrawal facility. 

Accordingly, the applicable are detailed in the following grids:

 GRID I

Kotak Mahindra  Bank NRE and NRO  FD Rates for Rupee Term Deposit 

Sl No

Maturity Bucket 

Premature Allowed

ROI in % pa

Annualized Yield 

1

7 days to 30 days

2.50

2.50

3

31 days to 90 days  

2.75

2.75

5

91 days to 120 days 

3.00

3.00

121 days to 178 days

3.25

3.25

180 days 

4.40

4.40

181 days to 364 days 

4.40

4.45

365 days to 389 days 

4.50

4.58

390 days to < 23 months

4.80

4..89

23 months < 3 years

5.00

5.09

3+ years < 4 years

5.10

5.20

6

4+ years < 5 years 

5.25

5.35

7

5+ years to 10 years 

5.30

5.41

ROI = Rate of Interest, PA = Per Annum, Deposit below Rs.2 Cr

Effective from 26/04/2021

Points to Note:

  • No interest is applied to NRE FD with tenor less than one year.
  • Interest calculation is based on 366 days in a leap year, and else it is 365. 
  • Only simple interest is applied in tenor below 181 days. 

GRID-II

Kotak Mahindra  Bank  FCNR (B) Interest Rates (Effective from 1 June 2021)

Sl No

Tenor

Currency 

$ (US)

£ (GB)

€ (EU)

¥ (JP)

$ (SG)

1

1 year to < 2 years

0.10%

0.01%

0.00%

0.00%

0.01%

2

2 years to < 3 years

0.10%

0.01%

0.00%

0.00%

0.01%

3

3 years to < 4 years

0.01%

0.01% 

No quote

No quote

No quote

4

4 years to < 5 years

0.01%

No quote

No quote

No quote

No quote

5

5 years only 

0.01%

No quote

No quote

No quote

No quote

$ (US) less than 0.50 Million

Points to Note:

  • No interest is paid if FCNR (B) is closed before one year.
  • If closed after one year, a penalty is imposed.

Conclusion

The tailored NRI FD schemes by Kotak Mahindra Bank are aligned with the emergent trends permitting value-added services like Mobile and Net Banking. Moreover, Kotak Mahindra Bank NRI FD Rates are competitive, providing the NRIs ample scope to grow their money in safety from remote corners of the world. 

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

“Tax benefit is subject to changes in tax laws. Standard T&C apply.”

Written By: PolicyBazaar - Updated: 31 August 2021

Investment plans articles

Recent Articles
Popular Articles
How to Invest Money

25 Nov 2021

The investment made today is the asset created for tomorrow...
Read more
Gold Bonds in India for NRIs

24 Nov 2021

Gold is an asset whose value increases over time that may be...
Read more
PIS Account for NRI

24 Nov 2021

Non-Resident Indians can operate in the recognized stock...
Read more
Process to Fill SSY Form in Post Office?

20 Nov 2021

The Sukanya Samriddhi Yojana (SSY) is a post office scheme...
Read more
How to Fill a Post Office Savings Bank Form?

20 Nov 2021

Post Office Savings Bank Account is a deposit scheme with easy...
Read more
Best LIC Policies For Investment in 2022
When it comes to purchasing a life insurance plan, 'LIC policies' are the most popular choice for customers. LIC...
Read more
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily...
Read more
Post Office Monthly Income Scheme - MIS Interest Rate 2022
Are you looking for an investment avenue that is safe and secure, earns substantial returns with a short locking...
Read more
SBI Life Insurance Plans in India
SBI Life Insurance, a joint venture between State Bank of India (SBI) and BNP Paribas Assurance, provides...
Read more
State Bank Of India Investment Plans
Monthly investments plan is a popular investment options for individuals who wants to gain a profitable investment...
Read more
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL