Kotak Mahindra Bank RD Interest Rates

Kotak Capital Management Finance was founded back in 1985 by Uday Kotak as a company to provide financial and investment services. When Anand Mahina invested in the company, its name was changed to Kotak Mahindra Finance. Kotak Bank offers many types of deposits to its users, one of them being Recurring Deposits. Also known as an advanced version of fixed deposits, RDs are helpful to people who are not in a position to save all their income at once. People earning a regular income can deposit a fixed amount monthly into their RD account and earn interest on that.

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Kotak Bank RD Account

One of the saving plans offered by the lender that gives competitive interest rates to assist you in achieving your financial objectives faster is the recurring deposit from Kotak Mahindra Bank. It enables to accumulation of a solid corpus with minimal frequent investments. It is a superior savings instrument to most others because of the competitive Kotak Mahindra RD rates and other essential features.

Regarding investment options having minimum risk for persons, recurring deposits are among the most suitable ones. They are mainly used for mass creation over a fixed tenure. For example, people earning a fixed amount of income every month can deposit a small amount in their recurring deposit account for some time, from six months to three years. It is up to the individual depositing in this option to choose the amount they want to invest and for what duration according to their financial needs or motives. 

Kotak Bank RD Interest Rates 2022

Kotak Bank offers various interests on RD, depending on the period, and is different for general citizens and seniors.

TENURE RD Rates for General Citizens RD rates for Senior Citizens
Six months 4.40% 4.90%
Nine months 4.40% 4.90%
Twelve months 4.90% 5.40%
Fifteen months 5.10%  5.60%
Eighteen months 5.10% 5.60%
Twenty-one months  5.10% 5.60%
Twenty four months 5.20% 5.70%
Twenty-seven months 5.20% 5.70%
Thirty months 5.20% 5.70%
Thirty-three months 5.20% 5.70%
3 years to 3 years 364 days 5.40%  5.90% 
4 years to 4 years 364 days  5.40%  5.90% 
5 years to 10 years  5.50%  6.00% 

Disclaimer: Policybazaar (known as Policybazaar Insurance Brokers Private Limited) does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer. 

Features of Kotak Mahindra Bank RD Account

  • A recurring deposit account with Kotak Mahindra Bank can be created in the name of a minor.

  • The deposit's duration spans from 12 to 120 months.

  • The minimum deposit amount can be made in multiples of Rs.5,000 or Rs.10,000.

  • Premature withdrawal is permitted but comes with a penalty.

  • There is a nomination service accessible.

  • To make use of this service, go to any Kotak Bank branch.

  • TDS (Tax Deduction at Source) deductions are based on the income tax laws in effect when the RD account was opened.

  • If the periodic deposit is not made, there is a penalty of the RD interest rate plus 2% per year.

Types of RD​​​​ in Kotak Mahindra Bank

There are two types of recurring deposit accounts offered by Kotak Bank as follows: 

  1. Cumulative Recurring Deposit Account

    In this, the depositor has an option to get the interest amount plus the deposited amount after the time is over. As the interest amount is accrued periodically, depositors can enjoy great returns without availing of the payout.

  2. Non-Cumulative Recurring Deposit Account

    If you are looking for deposits that are for a shorter amount of time, then a Non-Cumulative Recurring Deposit is most suitable for you. The depositors can avail benefit from periodic interest payouts; however, it should be kept in mind that the returns with this type of RD are lower than the cumulative ones. 

How to Open a Kotak RD Account?

Kotak RD account can be opened in various ways, such as:

  • Call 1860 266 2666.

  • Visit the Kotak Mahindra branch near you.

  • Alternatively, online methods can be used. If you are already a Kotak bank user, you can log in to your Kotak Net Banking account to immediately open an RD account.

Eligibility for Having an RD Account 

Any Indian resident, whether a minor (below 18 years) and HUF (Hindu Undivided Family), can have a recurring deposit account with Kotak Bank if they already have a savings account in that bank. Even a non-resident Indian can have a Kotak RD account. 

Documents Required to Open an RD Account

Various documents are required to open an RD account at Kotak Mahindra Bank. These include:

  • Passport

  • PAN card

  • Voter ID card

  • Driving license

  • Government ID card

  • Senior Citizen card (if the individual classifies as a senior citizen) etc.

  • Telephone bills

  • Electricity bills

  • A bank statement with the cheque

  • A certificate or ID card that the post office has issued. 

Premature Withdrawal of Deposit

Premature withdrawal of RD is allowed by Kotak Bank on the condition that it may charge a nominal penalty amount as per their banking rules. RD interest rate +2% is charged when the installment is not paid. However, withdrawal of partial RD amount is strictly prohibited. 

Benefits of Having a Kotak RD Account 

There are various advantages of having an RD account at Kotak Bank. Some of them are: 

  • This term deposit account fosters the habit of saving by mandating a set monthly contribution from your income.

  • Money invested in RD is safer and delivers guaranteed returns.

  • It is one of the most pleasing investing possibilities for newcomers who want to build a resource base for the future.

The recurring deposit account facility offered by Kotak Bank is an excellent source of an extra amount on your monthly deposits, especially if you don't want to deposit all your income at once. The rates vary for different periods. You can decide how much to deposit by knowing the approximate amount you will receive at the end of your tenure using the Kotak Bank RD calculator.

FAQ's

  • For what period can one have a Kotak RD?

    Kotak RD can be for 12 months at the minimum and 120 months at the maximum. 
  • What is the amount limit that can be deposited as a monthly installment?

    When the period is over three years, the maximum amount is Rs.36,000. For tenures less than three years, the maximum amount that can be deposited monthly is Rs.1,00,000.
  • Is it compulsory to provide PAN details to open an RD account?

    Yes, it is compulsory as PAN details are essential, as the required TDS rates on an RD account can be lower than those without PAN details. 
  • Is it possible to choose different kinds of interest payout options?

    No, interest payout options such as quarterly or monthly are not allowed. The interest amount is paid out on maturity or when there is premature withdrawal. 
  • Can one choose their payout?

    Kotak Mahindra Bank only gives the payout on either prematurity or at the maturity of RD.
* Applicable for Titanium variant of Max Life Smart Fixed-return Digital (Premium payment of 5 years, Policy term of 10 years) and a healthy male of 18 years old paying Rs. 30,000/- monthly (exclusive of all applicable taxes)
** Fixed deposit rate applicable for 5 year's 1 day to 10 years for investment amount less< 2 Crore ( Not for senior citizens).
*** PPF interest rate applicable for 15 years for investment amount upto 1.5 Lac
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
#Discount offered by insurance company
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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