Kotak Mahindra Bank RD provides a simple way to increase your savings. With interest rates ranging from 6.50% p.a. to 7.90%, your money will grow over time. Whether you’re saving for a particular occasion or creating a financial backup plan, RD schemes are among the best plans for investment.
Kotak Mahindra RD Rates
Kotak Bank offers varying RD interest rates according to the term, which ranges between common residents and seniors. The tenure ranges from 6 months to 10 years.
| Tenure | General Citizen Interest Rate p.a. (%) | Senior Citizen Rate p.a. (%) |
|---|---|---|
| 6 Months | 6.00% | 6.50% |
| 9 Months | 6.00% | 6.50% |
| 12 Months | 7.10% | 7.60% |
| 15 Months | 7.40% | 7.90% |
| 18 Months | 7.40% | 7.90% |
| 21 Months | 7.40% | 7.90% |
| 24 Months | 7.15% | 7.65% |
| 27 Months | 7.15% | 7.65% |
| 30 Months | 7.15% | 7.65% |
| 33 Months | 7.15% | 7.65% |
| 3 years – less than 4 years | 7.00% | 7.60% |
| 4 years – less than 5 years | 7.00% | 7.60% |
| 5 years – 10 years | 6.20% | 6.70% |
Note: The interest rate is updated on 27th February 2024 and is subject to change occasionally.
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Calculate RD Interest with RD Calculator
To skip the time-consuming manual calculation procedure, users may utilise an online RD calculator to calculate the appropriate maturity value and interest amount for the specified duration.
RD Calculator
It not only helps users avoid manual errors, but it also saves them a lot of time and energy. Interest on the Kotak Mahindra Recurring Deposit is compounded, and the maturity value is calculated using the following formula:
A = P x (1 + R/N) ^ (Nt)
- A = Maturity Amount
- P = Monthly Instalment
- N = Number of times the interest is compounded
- R = Rate of Interest
- t = Tenure
If a depositor invests regular monthly deposits of Rs. 4,000 in January, the maturity amount works out to Rs. 50,010 at the end of the year, assuming a 7.60% interest rate. To prevent laborious computations and errors, utilise the Kotak Mahindra Bank RD Calculator.
Benefits of Kotak Mahindra RD Account
There are several advantages to having an RD account with Kotak Bank. Some of them are:
- This term deposit account encourages the habit of saving by requiring a fixed monthly commitment from your paycheck.
- Money invested in RD is safer and promises guaranteed returns.
- It is one of the most appealing investment opportunities for individuals seeking to establish a resource foundation for the future.
- Kotak Bank’s recurring deposit account is an ideal way to increase your monthly deposits, particularly beneficial if you prefer to deposit your salary in smaller amounts over time. Rates vary depending on the period. You may select how much to deposit when you know the approximate amount you will receive after your tenure using the Kotak Mahindra RD calculator.
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Features of Kotak Mahindra RD Interest Rate
By applying for an RD in Kotak Mahindra, many features benefit the customers, some of them are:
- A recurring deposit account with Kotak Mahindra Bank can be opened in the name of a minor.
- The deposit period ranges from 12 to 120 months.
- The minimum deposit amount can be in multiples of Rs. 5,000 or Rs. 10,000.
- Premature withdrawal is acceptable but carries a penalty.
- There is a nomination service available.
- TDS (Tax Deduction at Source) deductions are calculated using the income tax regulations in force when the RD account was created.
- If the periodic deposit is not made, there will be a penalty equal to the RD interest rate + 2% per year.
RD Interest Rates of Top Banks
| Bank Recurring Deposit | RD Interest Rates (p.a.) — General Public | RD Interest Rates (p.a.) — Senior Citizens |
|---|---|---|
| Bank of Maharashtra RD | 5.50% to 6.25% | 6.00% to 6.75% |
| Punjab National Bank RD | 6.00% to 7.25% | 6.50% to 7.75% |
| Indian Overseas Bank RD | 5.75% to 7.30% | 6.25% to 7.80% |
| ICICI RD | 4.75% to 7.20% | 5.25% to 7.75% |
| Bank of India RD | 4.50% to 6.00% | 5.00% to 6.50% |
| HDFC RD | 4.50% to 7.25% | 5.00% to 7.75% |
| IDBI Bank RD | 6.25% to 7.00% | 6.75% to 7.50% |
| Federal Bank RD | 5.75% to 7.50% | 6.25% to 8.00% |
| Union Bank of India RD | 5.75% to 6.50% | 6.25% to 7.00% |
| IndusInd Bank RD | 7.00% to 7.75% | 7.50% to 8.25% |
| SBI RD | 6.50% to 7.00% | 7.25% to 7.50% |
| Axis Bank RD | 5.75% to 7.20% | 6.25% to 7.85% |
| Canara Bank RD | 6.15% to 7.25% | 6.65% to 7.75% |
| Saraswat Bank RD | 7.00% to 7.50% | 7.50% to 8.00% |
| Yes Bank RD | 6.10% to 7.75% | 6.60% to 8.25% |
| Indian Bank RD | 4.50% to 7.25% | 5.00% to 7.75% |
| South Indian Bank RD | 5.00% to 7.40% | 5.50% to 7.90% |
| Bandhan Bank RD | 4.50% to 7.85% | 5.25% to 8.35% |
| Karur Vysya Bank RD | 6.25% to 7.50% | 6.25% to 8.00% |
| Bank of Baroda RD | 5.75% to 7.25% | 6.25% to 7.75% |
| DBS Bank RD | 6.00% to 7.50% | 6.50% to 8.00% |
| Jammu and Kashmir Bank RD | 5.75% to 7.10% | 6.25% to 7.60% |
| City Union Bank RD | 6.25% to 7.00% | 6.50% to 7.50% |
| Karnataka Bank RD | 5.80% to 7.40% | 6.20% to 7.90% |
| Dhanalakshmi Bank RD | 6.50% to 7.25% | 6.50% to 7.75% |
| TMB RD | 6.75% to 7.75% | 7.00% to 8.25% |
| Post Office RD | 6.50% | 6.50% |
Note: The interest rates are subject to change. Do visit the official website for updated rates.
Did you know that besides opening an RD in banks, you can also open an RD account in the Post Office? To check RD returns from the post office, use a Post Office RD calculator for quick financial calculations.
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How to Open an RD Account at Kotak Mahindra Bank
There are three methods to open an RD account. Customers can opt for any of the options mentioned below:
- Visit the nearest Kotak Mahindra Bank branch and proceed with the steps instructed by the staff members.
- Alternatively, call 1860 266 2666 for assistance.
- Register for a Kotak Mahindra net banking account and open an RD account instantly online.
Eligibility to Open an RD Account
Any Indian person, including minors (under the age of 18) and Hindu Undivided Families (HUFs), can open a recurring deposit account with Kotak Bank if they already have a savings account there.
This includes non-resident Indians who can open a Kotak RD account.
It is a practical way to accumulate small savings each month to develop a stable fund. In general, it is regarded as a good savings plan for salaried persons who prefer monthly investing over net-total deposits, particularly those with a restricted income.
Furthermore, the fact that RD plans are less impacted by current market situations makes them low-risk savings solutions.
Documents Required for RD Account
For opening an RD account, customers should have the following documents ready.
Identity Proof:
- Passport
- PAN card
- Voter ID
- Government ID
- Driving licence
- Senior Citizen ID
- Ration Card
Address Proof:
- Bank statement
- Electricity bill
- Telephone bill
- ID card issued or certificate
Premature Withdrawal of Kotak Mahindra Bank RD Account
Kotak Bank allows early withdrawal of RD with a small penalty in compliance with their banking laws. Failure to pay instalments results in an RD interest rate + 2% fee. However, only full withdrawals of RD funds are authorised.
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Types of Kotak Mahindra Bank RD Schemes
There are two Recurring Deposits offered by Kotak Mahindra Bank:
Cumulative Recurring Deposit Account
Individuals who have a cumulative RD account can choose to withdraw both the interest and the deposit amount when the RD’s term is up. Depositors can make considerable returns on their deposits using this RD, which accumulates interest on a regular basis.
Non-Cumulative Recurring Deposit Account
Individuals can receive periodic interest distributions from this type of RD, making it a preferable option for those looking for a short-term deposit plan. Non-cumulative recurring deposits, however, produce significantly smaller returns than cumulative deposits.
Tax Deducted at Source on Kotak Mahindra Recurring Deposits
All RD schemes are taxed since the interest received on the deposited funds is added to the depositor’s annual income. As a result, the interest becomes taxable income for the individual.
Furthermore, if the total interest earned surpasses Rs. 10,000 in a year, a 10% TDS is imposed on it. RD account holders can apply for a tax exemption by completing Form 15G/15H.
It is vital to remember that the RD account holder must meet certain conditions before submitting these documents.
For Form 15G:
- The customer should be an Indian resident below the age of 60.
- The deposit holder should be an individual or a HUF.
- The customer’s computed tax amount on total income should be nil.
- The minimum tax exemption limit for the year should be greater than the total interest earned in a year.
For Form 15H:
- Should be an Indian resident who is at least 60 years of age.
- The individual’s tax amount on total income should be nil.
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