Nidhi | Apr 10, 2025 |

Kotak Mahindra Bank Cuts FD interest Rates: Know More

Kotak Mahindra Bank has modified its interest rates, and the revised rates are effective from April 9, 2025. It has lowered FD rates by 15 basis points (bps) on specific tenures. The bank last cut its FD rate on June 14, 2025.

Earlier, the banks offered Interest rates between 2.75% and 7.40% for general citizens and 3.25% and 7.90% for senior citizens.

As per the latest revision, Kotak Mahindra Bank now gives FD rates between 2.75% and 7.30% for general citizens. For senior citizens, the rates are between 3.25% and 7.80%.

This revision comes as interest rate trends are being closely watched by investors and depositors during the changing economic conditions. The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points, which could lead to a further drop in fixed deposit interest rates.

Tenures on which FD interest rates have been reduced

For the 390-day tenure (12 months and 25 days), the bank has cut the FD rate by 15 bps, from 7.40% to 7.25%.
For tenures between 391 days and 23 months, the bank has cut the rates by 10 bps, bringing it down from 7.40% to 7.30%.
On 23- month tenure, the FD rates have been cut by 5 bps, from 7.30% to 7.25%.
For the tenure of 23 months and 1 day to less than 2 years, the bank has reduced the rate by 15 bps, from 7.30% to 7.15%.

Maturity Periods – Premature Withdrawal Allowed	Regular Citizen (less than Rs.3 Cr)	Senior Citizen (less than Rs. 3 Cr)
7 – 14 Days	2.75%	3.25%
15 – 30 Days	3.00%	3.50%
31 – 45 Days	3.25%	3.75%
46 – 90 Days	3.50%	4.00%
91 – 120 Days	4.00%	4.50%
121 – 179 Days	4.25%	4.75%
180 Days	7.00%	7.50%
181 Days to 269 Days	6.00%	6.50%
270 Days	6.00%	6.50%
271 Days to 363 Days	6.00%	6.50%
364 Days	6.50%	7.00%
365 Days to 389 Days	7.10%	7.60%
390 Days (12 months 25 days)	7.25%	7.75%
391 Days – Less than 23 Months	7.30%	7.80%
23 Months	7.25%	7.75%
23 Months 1 Day – Less than 2 Years	7.15%	7.65%
2 Years – Less than 3 Years	7.15%	7.65%
3 Years and Above but Less than 4 Years	7.00%	7.50%
4 Years and Above but Less than 5 Years	7.00%	7.50%
5 Years and Above up to and Inclusive of 10 Years	6.20%	6.70%

Penalty on premature withdrawal

Tenure of Fixed Deposit	Penalty
Less than or equal to 180 days	Nil
Greater than 180 days to less than or equal to 364 days	0.50%
Greater than or equal to 365 days	1.00%

The bank says that in case of premature withdrawal, Interest will be paid at the rate applicable on the deposit date for the tenure the funds remained with the bank or the agreed rate, whichever is lower after deducting the applicable penalty as per the bank’s terms and conditions regarding premature withdrawal.

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