Senior Citizen Fixed Deposit FAQs

Senior Citizen Fixed Deposit

Fixed Deposit - Senior Citizen Fixed Deposit - Kotak Mahindra Bank

Frequently Asked Questions

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How can I calculate the interest on my fixed deposit?

Access our online FD calculator and enter the amount and fixed interest rate offered to you. You will get the results within seconds. 

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What is the rate of interest for fixed deposits with Kotak Bank?

The interest rate for fixed deposits with Kotak Bank varies with maturity period, deposit amount, type of depositor, etc. For instance, the rates are higher for senior citizens compared to residing Indians under the age of 60 years.

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What are the minimum amount and maximum amount I can deposit in a fixed deposit?

At Kotak, you can start a fixed deposit with a minimum amount of Rs. 5,000.There isn’t any maximum limit for the fixed deposit amount.

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Can I withdraw my FD before maturity?

Yes, we have an option for premature withdrawal from fixed deposit accounts in select cases. 

However, in that case, interest-earned will be lesser than contracted.

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

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.

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At what rate is TDS deducted?

Applicable TDS rates are:

 

Tax Rate

Health and Education Cess

TOTAL

Resident Individuals & HUF

10%

Nil

10%

Corporate Entity

10%

Nil

10%

NRO/ foreign companies

30%

4%

31.2%*

Firms

10%

Nil

10%

 

Disclaimers:
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 resident individuals and domestic companies and 31.2% (plus surcharge wherever applicable) in case of NRO/ foreign company deposits. Tax laws are subject to change and amendments from time to time which may affect above rates.

*Rate may further be increased by the surcharge wherever applicable.

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How and when can I apply for exemption on TDS?

When your total interest income for the year is within basic exemption limits, you should inform the bank not to deduct TDS on deposits.

You can do this by submitting a form/ certificate from tax authorities as per the provisions of the Income Tax Act. The forms required for different categories have been listed below:

Category of Account

Form Required

Individual/ HUF

Form 15G/15H

Companies

Certificate u/s 197

Others

 Certificate u/s 197

 

Disclaimers:

  • You have to obtain Certificate u/s 197 Form from the Income Tax department. 
  • Even if the customer submits the Form 15G/ 15H/certificate u/s 197, the tax which has already been deducted by way of TDS during the year prior to submission of such Forms/ certificates will not be refunded by the bank. However, TDS Certificates in Form 16A will be issued to the customers which can be used while filing his/her income tax return.
  • Form 15G/ 15H/Certificate u/s 197 are valid only for the particular financial year in which they are issued.
  • A fresh Form 15G/15H needs to be furnished for each deposit that is placed with the Bank during the financial year.

 

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When does the Bank issue a TDS Certificate?

TDS certificates in Form 16A will be sent by the Bank on your registered email ID if the same is available. In case registered email ID is not available then the same will be sent by post/ courier on your registered address. TDS certificates can also be downloaded by logging into your net banking account.

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

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

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What documentation is required to open a senior citizen Fixed 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

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Do I need to apply for a separate Customer ID to avail the senior citizen Fixed 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 Fixed 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 Fixed Deposit.

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Is Age Proof required for all the subsequent Deposits?

All subsequent Fixed 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 Fixed Deposit existing at the time of placing the next Fixed Deposit. The Fixed 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.

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

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

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

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

 

  • TDS will be recovered at 20% or the applicable higher rate  (as against 10%)
  • NO TDS credit from the Income Tax department
  • NO TDS credit from the Income Tax department
  • Form 15G/H and other exemption certificates will be invalid and TDS at higher rates will apply

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