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Kotak Mahindra Bank’s fixed deposit rates in 2026 go up to 6.80% for regular customers and 7.30% for senior citizens on deposits below ₹3 crore. But the headline rate is only one part of the FD equation. Tenure, liquidity, premature-withdrawal terms, taxation, and the way surplus money is managed can all affect the usefulness of a deposit.
Kotak also offers ActivMoney, a two-way sweep facility that links fixed deposits to a savings or current account. It is designed to provide access to funds when the linked account falls short while allowing eligible surplus funds to earn FD rates. That makes it relevant for investors who want a combination of fixed-deposit returns and transactional liquidity.
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Kotak FD Interest Rates 2026 for Deposits Below ₹3 Crore
Kotak Mahindra Bank’s published domestic/NRO/NRE FD rates for deposits below ₹3 crore are effective from 10 June 2026. For regular customers, the highest rate is 6.80% for two years to less than three years. Resident senior citizens receive an additional 0.50 percentage point on the listed retail rates, taking the highest rate to 7.30%.
| FD tenure | Regular customers | Senior citizens |
| 7–14 days | 2.75% | 3.25% |
| 15–30 days | 2.75% | 3.25% |
| 31–45 days | 3.00% | 3.50% |
| 46–90 days | 3.50% | 4.00% |
| 91 days | 4.00% | 4.50% |
| 92–179 days | 4.25% | 4.75% |
| 180 days | 5.00% | 5.50% |
| 181–269 days | 5.50% | 6.00% |
| 270 days | 5.50% | 6.00% |
| 271–363 days | 6.00% | 6.50% |
| 364 days | 6.00% | 6.50% |
| 365 days to <15 months | 6.35% | 6.85% |
| 15 months to <18 months | 6.45% | 6.95% |
| 18 months to <2 years | 6.55% | 7.05% |
| 2 years to <3 years | 6.80% | 7.30% |
| 3 years to <4 years | 6.40% | 6.90% |
| 4 years to <5 years | 6.40% | 6.90% |
| 5 years to 10 years | 6.25% | 6.75% |
Source: Kotak Mahindra Bank
The rates are subject to change, so the applicable rate should be checked when the deposit is actually booked. Kotak states that the minimum FD amount is ₹5,000, with no stated maximum deposit limit.
Which Kotak FD Tenure Offers the Highest Interest Rate?
For deposits below ₹3 crore, the 2-year to less-than-3-year tenure currently offers Kotak’s highest rate: 6.80% for regular customers and 7.30% for senior citizens. The rate falls to 6.40% for three years to less than five years and 6.25% for five to 10 years. That makes the highest-rate tenure fairly clear, but investors don’t necessarily need to select it. A shorter maturity may be more appropriate when the money is likely to be needed earlier, while a longer FD can lock in the contracted rate for a longer period.
The relevant comparison is therefore not simply “Which tenure pays the most? “Which tenure matches when I expect to need the money?”
What Is Kotak ActivMoney or Flexi FD?
Kotak’s ActivMoney is essentially a sweep-in/sweep-out arrangement rather than a conventional standalone “flexi FD.” When the facility is activated, surplus money in the linked savings account can be automatically moved into fixed deposits. If the savings-account balance subsequently falls below the specified threshold, funds can be swept back from the FD to meet the shortfall. Kotak says the facility can use multiple linked deposits, with the most recently booked deposit swept in first.
For ActivMoney deposits, Kotak states that its regular FD rates apply to customers, including senior citizens. This is an important distinction: the senior-citizen rate benefit does not apply to ActivMoney, according to the bank’s FD disclosures. The facility can therefore be useful for someone who regularly keeps surplus cash in a savings account but may occasionally need access to it. However, the mechanics and applicable terms should be checked before activating it.
How Does Kotak FD Premature Withdrawal Work?
Kotak permits premature withdrawal for eligible FDs, although the interest payable can be lower than the contracted rate and a penalty may apply.
For deposits booked or renewed from 20 May 2022, the bank’s published penalty schedule is
- Up to 180 days: no penalty
- 181–364 days: 0.50%
- 365 days and above: 1.00%
Kotak states that on premature withdrawal, interest is calculated using the lower of the rate applicable when the deposit was booked for the period it remained with the bank or the contracted rate, after the applicable penalty. This makes liquidity an important consideration when comparing tenures. An FD with a slightly higher rate may not necessarily produce a higher realized return if it has to be broken early.
Kotak FD vs. SBI and HDFC Bank FD Rates
A rate comparison provides useful context, but it shouldn’t be presented as a ranking. For example, SBI’s current retail domestic FD rates [1] include 6.25% for one year to less than two years and 6.45% for two years to less than three years for the general public. Its corresponding senior-citizen rates are 6.75% and 6.95%.
HDFC Bank’s rates [2], effective 19 August 2026 include 6.25% for one year to less than 15 months, 6.35% for 15 to less than 18 months, and 6.45% for 18 to less than 21 months for deposits below ₹3 crore.
Kotak’s 6.80% rate for two years to less than three years is therefore higher than the corresponding SBI retail rate. But an FD comparison should also consider tenure, premature-withdrawal terms, deposit insurance, and how much money is being concentrated in one bank.
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Is Kotak FD Covered by DICGC Insurance?
Kotak Mahindra Bank is an insured bank under the DICGC framework. Eligible deposits, including FDs, are insured up to ₹5 lakh per depositor per bank, covering principal and accrued interest. Deposits held in different branches of the same bank are aggregated for this limit, while eligible deposits at different banks are separately insured. For investors with sizeable FD portfolios, this makes bank diversification relevant. DICGC insurance should not be interpreted as coverage for the entire amount placed in an FD.
Tax on Kotak FD Interest
Interest earned on a Kotak FD is taxable according to the applicable income-tax rules and the investor’s tax position. TDS may also apply when the relevant statutory conditions are met. Kotak’s current disclosure states that it deducts TDS on interest accrued but not due as required under the applicable tax provisions.
For comparing FDs, therefore, the post-tax return can be more relevant than the headline interest rate, particularly for investors in higher tax brackets.
What Should Investors Compare Before Choosing a Kotak FD?
The interest rate is only one variable. Investors comparing Kotak with other bank FDs can look at the tenure, liquidity, premature-closure penalty, DICGC coverage, tax impact, and the bank’s current financial disclosures.
Kotak’s latest Q1 FY27 results show total period-end deposits of ₹5.73 lakh crore, up 12% [3] year-on-year, while its management reported a 22.8% overall capital adequacy ratio and 22.4% CET-1 ratio as of June 30, 2026.
These figures provide context on the bank’s current financial position, but they should not be interpreted as a guarantee of future performance or as a substitute for deposit diversification.
Kotak FD Rates 2026 FAQs
For deposits below ₹3 crore, Kotak’s highest rate is currently 6.80% for regular customers and 7.30% for senior citizens, on the two-year to less-than-three-year tenure.
ActivMoney is Kotak’s two-way sweep facility, which links an FD to a savings or current account and automatically moves funds between them when required, subject to the applicable terms.
No. Kotak states that regular FD rates apply to ActivMoney, including for senior citizens.
For deposits booked or renewed from 20 May 2022, the penalty is nil up to 180 days, 0.50% from 181 to 364 days and 1% from 365 days onward.
Yes. Eligible deposits are covered up to ₹5 lakh per depositor per bank, including principal and interest.
Sources
- SBI — Retail Domestic Term Deposit Rates
- HDFC Bank — Current FD Interest Rates
- Kotak Mahindra Bank — Q1 FY27 investor call transcript
Disclaimer
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