Senior Citizen Deposits

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To facilitate senior citizens with maximum returns over Term Deposits, Kotak Mahindra Bank offers special rates on these deposits. All Resident Indians Individuals, above 60 years of age can avail benefits of this scheme. New customers need to submit a valid age proof along with the application.
Book a Kotak Senior Citizen Deposits for safe and steady returns whenever you want, i.e., monthly or quarterly. You can also keep it invested till maturity.

  1. Attractive interest rates
  2. Make a deposit of as low as Rs. 10,000/- ( Rs. 25,000/- for new customer)
  3. Booking period - 7 days to 10 years1
  4. Choose to receive interest monthly, quarterly or keep it invested till maturity
  5. Kotak Bank customers can Book Term Deposits online through Net Banking
  6. Partial/Premature withdrawal of Term Deposit is permitted.
  7. Nomination facility is available
  8. Liquidity through sweep-in facility
  9. Flexibility to keep your financial portfolio diversified
  10. Avail Overdraft facility against term deposit


1For Term Deposits with tenure below 181 days, interest will be calculated at maturity as Simple Interest.
For monthly pay-out Term Deposit minimum tenure is 181 days and interest payout will be discounted based on the prevailing rates.


The following can apply for Senior Citizen Deposits with the requisite documentation:

Resident Individuals, Hindu Undivided Family, Sole Proprietorship Concern


  1. A valid passport or a valid driving license
  2. An introduction by any other bank or an introduction by a Kotak Bank Savings Account holder for the last six months
  3. A photograph


  1. Copy of the Trust Deed
  2. Copy of the registration certificate
  3. Copy of the Resolution of The Trustees
  4. Authorizing the members concerned to open and operate the account
  5. Photographs of the members operating the account
Associations / Clubs


  1. By-laws of the Association
  2. Copy of the Resolution by the board authorizing the members concerned to open and operate the account
  3. Photographs of the members operating the account
Partnership Firm


  1. Partnership Deed
  2. Letter from partners approving the persons concerned to open and operate the account
  3. Photographs of the persons operating the account
Limited Companies


  1. Retain only for residents individuals



  • Effective 1st April 2010, PAN is mandatory to book Term Deposits if the total Term Deposit holding per customer ID per branch exceeds Rs. 50,000/-
  • An initial deposit of Rs. 10,000/- is required to open a Term Deposit
  • Senior citizens' Term Deposit is available to resident individuals above the age of 60 years

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When do I become liable for TDS?

You become liable for TDS1 when the aggregate interest you earn for all deposits held in a particular customer ID is greater than Rs. 10,000/- in a financial year.


1Tax liability for TDS purpose is determined at branch level. Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor's income is included.


When is TDS deducted?

TDS is deducted every time the Bank pays/re-invests interest during the financial year. TDS is also deducted on unpaid interest accrued at the end of financial year viz. 31st March.

Can TDS be recovered from principal of deposit in any case?

When interest amount is insufficient to recover TDS, the same is recovered from the principal of the deposit.

Can the maturity amount of the deposit reduce due to TDS?

Yes, in case of reinvestment deposits, the interest reinvested is post TDS recovery. Therefore, the maturity amount for re-investment deposits varies to the extent of tax and compounding effect on tax for the period subsequent of deduction till maturity.

Does any change or enhancement in my deposit portfolio affect TDS liability?

Yes. If the change or enhancement in your deposit portfolio earns a cumulative interest2 along with that of the earlier portfolio greater than Rs. 10,000/- you will be liable for TDS on your current portfolio.


2If interest on the current portfolio is not sufficient to cover TDS, it will be recovered from the principal.

At what rate is TDS deducted?

W.e.f. Aug 09, applicable TDS rates are:

 Tax RateSurchargeEducation CessTOTAL
Resident Individuals & HUF10%   NilNil10%
Corporate Entity10%NilNil10%


As per section 206AA introduced by Finance (No. 2) Act, 2009 w.e.f. 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at rate of 20% in case individuals and at the rate of 30% in case of non-individuals for Domestic deposits and 30.90% in case of NRO deposits.

How and when can I apply for exemption on TDS?

When your total interest income for the year will not fall within overall taxable limits, you should inform the bank not to deduct TDS on deposits. You can do this by submitting a form as per the provisions of the Income Tax Act. The forms required for different categories have been listed below:

Category of AccountForm Required
Association of Companies15AA


  • You have to obtain 15AA Form from the Assessing Officer of Income Tax department.
  • Even if the customer submits the 15H/15AA Form, the tax which has already been deducted by way of TDS during the year prior to submission of 15H Form will not be refunded by the bank. However, Certificates will be issued to the customers which can be used while filing his/her tax return.
  • 15H/15AA Forms are valid only for the particular financial year in which they are issued.
  • A fresh Form 15G/H needs to be furnished for each deposit that is placed with the Bank within the first week of the financial year.

When does the Bank issue a TDS Certificate?

  • For TDS deducted during a calendar quarter, the same will be issued in the next month of the respective quarter
  • The TDS Certificates that were sent till date via post can be downloaded online from the NSDL
  • TDS Certificate in Form 16A starting from financial year 2010-11

Can the account be opened in a joint account with a non-senior citizen?

Yes, provided the first account holder is a senior citizen.

What documentation is required to open a senior citizen Term Deposit?

While opening the account, the customer needs to provide proof of age establishing that he/she is a Senior Citizen. To accomplish this, either of the following can be submitted:

  • Secondary School Leaving Certificate
  • LIC Policy
  • Voters Identity Card
  • Pension Payment Order
  • Birth Certificate issued by the competent authority
  • Passport
  • Defense ID Card/Government ID Card (Provided they have the cardholder's photo, signature and date of birth)
  • PSU Issued ID Cards
  • Senior Citizen Cards issued by Indian Airlines/Indian Railways
  • PAN Card

Do I need to apply for a separate Customer ID to avail the senior citizen term deposits facility if I am an existing customer?

There is no need to create a separate Customer ID to avail of this product. For new Term Deposits, you only have to provide proof of age. In case proof of age is not submitted, the interest earned will be the same as for the Regular Term Deposit.

Is Age Proof required for all the subsequent Deposits?

All subsequent Term Deposit applications need to be accompanied by proof of age. The only exception to this rule is where a customer already has a live Senior Citizen Term Deposit existing at the time of placing the next Term Deposit. The Term Deposit number needs to be mentioned on the Form. In such cases, it will be assumed that proof of age already exists with the Bank.

Can I open a Term Deposit through NetBanking if my PAN details are not updated with the bank?

Through NetBanking, Term Deposit can be booked by any applicant subject to PAN is updated with the Bank for the Primary applicant in which the Term Deposit is getting booked.

What are the implications of booking a Term Deposit without PAN?

In the absence of PAN, following are the implications for customers:

  • TDS will be recovered at 20% (as against 10%)
  • NO TDS credit from the Income Tax department
  • NO TDS certificate will be issued (As per CBDT circular no: 03/11)
  • Form 15G/H and other exemption certificates will be invalid and penal TDS will apply

What is the NEW policy with regards to PAN to book Term Deposit with Kotak bank?

  • Where total Term Deposit value under per Customer ID per branch is <= Rs. 50,000/- (including the new Term Deposit being booked) ---- NO PAN & NO FORM 60.
  • Where total Term Deposit value under per Customer ID per branch is > Rs. 50,000/- (including the new Term Deposit being booked) ---- PAN REQUIRED MANDATORILY



#Simple interest rate
*Senior Citizens' rate is not applicable on NRO/NRE deposits
***101Days-120Days: Premature withdrawal of deposit is not permitted in this bucket for amount 1Cr and above.
No interest will be payable for NRE TDs staying less than 1 year.
For Term Deposits with tenure below 181 days, interest will be calculated at maturity as Simple Interest.
Standalone Term Deposits of tenure 181 days and above linked to saving / current account will be treated as per the regular sweep deposit functionality and penal charge will be applicable as above.
For ActivMoney (2 way sweep deposits) Regular Term Deposit rates will be applicable for all customers including Senior Citizen's / Bank Staff
Acceptance of deposits of Rs.5 cr. and above is at the discretion of the Bank's Treasury.
Interest on Term Deposit can be paid for a period of less than a quarter (monthly interest payout) at the discounted interest rates as per RBI directives
Kindly note that the above rates are applicable for mentioned dates only and are subject to change without prior notice

Important: Penal Charge on Pre-mature withdrawal of Term Deposits (Domestic / NRO / NRE)

Interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit or the withdrawn amount remained with the bank or at the contracted rate, whichever is lower after deducting applicable penal charge for premature withdrawal as per Terms & Conditions of the bank.
As per Terms & Conditions of Term Deposit Accounts of the Bank, the penal charge on premature closure of term deposits including partial closure has been fixed by the bank as below on term deposits booked/ renewed on or after 1st November, 2012.

Tenure of Term DepositPenalty
Less than 181 daysNil
181 days and above0.50%

In addition to the above, no interest will be paid on the principal amount withdrawn from NRE term deposits before completion of one year.



Note: Interest rates are subject to periodic changes. The applicable interest rates will be offered based on the date and time of receipt of the funds by the bank.
*Recurring Deposit Advice will be dispatched to your registered mailing address with the bank within 3 - 4 working days of opening the RD account
Not available for Non Resident Indians / Persons Of Indian Origin

Penalty on delay in payment of RD installment

In case of delay in payment of any installment post grace period of 5 days, penal interest at the rate of RD interest rate (contracted rate of interest at the time of booking of the RD) + 2% p.a. or such other rate as may be specified by Bank from time to time, will be charged for the month of delay.
Fraction of a month will be treated as full month for the purpose of calculating such interest.
Even if the payment for the month is honoured, but the standing instruction towards installment recovery has failed, the Bank will recover a standing instruction failure charge from the current / savings bank account as per General Features and Schedule of Charges (GFSC)
The total penal interest chargeable shall be recovered from the total amount of interest payable by the bank and shall be recovered only at the time of maturity or premature closure of the account as the case may be.

Premature Withdrawal of RD

In case of premature closure of this deposit within a month, no interest shall be paid and only principal amount will be returned.
On premature withdrawal of RD. The interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit remained with the bank or at the contracted rate, whichever is lower post deducting penal charge of 0.5% on premature withdrawal of deposit


  • Minimum tenure to book FCNR (B) deposit is 1 year & 1 day
  • No interest would be paid if the said deposit is pre-closed in less than a year.
  • Premature penalty of 0.5% of FCNR (B) deposit would be charged on withdrawal of FCNR (B) deposit.
  • It may not be advisable to withdraw the deposit, which is placed for original maturity of 3 years and above, prematurely


*Rates for Senior Citizen category not available for FCNR Deposits.
No interest will be payable for FCNR Deposits staying less than 1 year.
Interest rate subject to change without prior notice.

How is Interest calculated?

  • Interest is calculated on quarterly basis for deposits with tenure of 6 months and above. For deposits with tenure below 6 months interest is calculated on basis of  Simple Interest
  • Interest earned during the previous quarter is added to the Principal for calculation of interest. Interest on this amount is calculated every quarter
  • The period of Fixed Deposit is considered on basis of number of days
  • In an event whe?re the depositor chooses to receive the periodic interest payments on quarterly basis, the interest is calculated and paid on quarterly intervals
  • In case of premature withdrawal, the interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit remained with the bank or at the contracted rate, whichever is lower post deducting prepayment charge for premature withdrawal as per Terms & Conditions of the bank
  • Tax at Source is deducted as per the Income Tax regulations prevalent from time to time
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