Kotak Mahindra Bank RD Interest Rates

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, FD and its schemes are the best plans for investment.

Kotak Mahindra Bank provides a recurring deposit account with an annual interest rate of 6.50% p.a. to 7.90% p.a. and deposit terms of 12 to 120 months.

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 Rates 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%

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Note: The interest rate is updated on 27th February 2024, they are subject to change occasionally.

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Calculate RD Interest with RD Calculator

To skip the time-consuming manual calculation procedure, users may utilize online RD calculator to calculate the appropriate maturity value and interest amount for the specified duration.

Invested Amount :  ₹1,000
Total Interest :  ₹532
Maturity Amount :  ₹12,532

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 added up weekly, 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 simple and compound interest calculations yield a maturity amount of Rs. 50,010 at the end of the year, assuming a 7.60% interest rate. To prevent laborious computations and blunders, utilize 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 immigrants seeking to establish a resource foundation for the future.
  • Kotak Bank's recurring deposit account service 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 get after your tenure using the Kotak Mahindra RD calculator.

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Features of Kotak Mahindra RD Interest Rate

By applying for 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 the 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 it 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
Kotak Mahindra Bank RD 6.00% to 7.40% 6.50% to 7.90%
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%

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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.

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.

  • Customers can visit Kotak Mahindra Bank branch near their locality and move forward with the procedures instructed by the staff members.
  • Alternatively, the customers can call 1860 266 2666
  • Another method is that they would have to register to Kotak Mahindra Banking account and there you can open a RD account instantly.

Eligibility to Open 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 tiny 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 for further process and registration.

As identity proof the customers should have :

  • Passport
  • PAN card
  • Voter ID
  • Government ID
  • Driving licence
  • Senior Citizen ID
  • Ration Card

As address proof, the customer should have :

  • Bank statement
  • Electricity bill
  • Telephone bill
  • ID card issued / 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 installments results in an RD interest rate + 2% fee. However, only full withdrawals of RD funds are authorized.

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Types of Kotak Mahindra Bank RD Schemes

There are two Recurring Deposits offered by the 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 by using this RD, which collects interest on a regular basis without requiring a payment.

  • 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 to put their funds. Non-cumulative recurring deposits, on the other hand, 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, on the other hand, 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 15G Form

The customer should be an Indian resident and below the age of 60

  • The deposit holder should be an individual or a HUF
  • Customers computed tax amount on total income should be nil
  • The minimum tax exemption limit for the year should be greater than the total interest in a year

For 15H Form

Should be an Indian resident who is atleats the age of 60

  • Individual's tax amount on the total income should be nil

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Frequently Asked Questions

The current Kotak RD interest rate varies based on the tenure and deposit amount.

The 7% interest rate in Kotak Bank is 3.50%p.a.

The RD scheme with the highest interest rate may vary among different banks and tenure options.

Kotak offers a range of accounts tailored to different needs; the best one depends on individual preferences and requirements.

Kotak Mahindra Bank is a reputable and well-established bank, known for its safety and reliability.

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