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Kotak Mahindra Bank Recurring Deposit Rate

A Recurring Deposit (RD) is a guaranteed returns investment wherein you make regular instalments of money in a systematic manner to earn a lump sum amount at the end of the specific period. You can save significant amounts by depositing these small amounts every month. It is very similar to the fixed deposit scheme. In Fixed Deposits (FD), one needs to be make a huge amount for a specific tenure to earn interest. In recurring deposit, the investment amount is small and thus, helps in saving for a specific financial goal.

Kotak Mahindra Bank Recurring Deposits

Kotak Mahindra Bank Recurring Deposit Rate

The Kotak Mahindra Bank Recurring Deposits are designed in a way that it helps in achieving your financial goals on your own terms. This recurring deposit gives you the freedom to choose the term and the amount you wish to deposit on a monthly basis. At the end of the maturity term, there is guaranteed return at the applicable interest rate. It is a good option to save your money and maximize your returns.

Benefits of Kotak Mahindra Bank Recurring Deposits

  • A convenient scheme to make monthly investment of small amounts to save for future
  • It suits salaried category and people with limited income who cannot make huge investments in one-go
  • Kotak Mahindra Bank offers easy payment options from the savings bank account
  • Recurring deposit is a low risk investment option and hence guaranteed returns
  • It is least affected by market volatility

Features of Kotak Mahindra Bank Recurring Deposits

  • The minimum deposit amount is Rs.100/- and can go upto Rs 50,000/- every month for 10-year period
  • Interest is paid on maturity or on the premature closure of the recurring deposit
  • The recurring deposit must be invested for a minimum period of 12 months and thereafter in multiples of 3 months upto a maximum period of 120 months
  • One can open, monitor and close recurring deposit account through Net banking service of Kotak Mahindra Bank
  • TDS is applicable on the interest paid/accrued on recurring deposit account
  • The deposit holder can claim exemption from TDS by submitting Form 15G/15H
  • Additional interest rate of 0.50% for senior citizens of all periods
  • Nomination facility is available

Kotak Mahindra Bank Recurring Deposit Interest Rates

The recurring deposit interest rate is higher than Savings Account and is equal to the Fixed Term Deposit rate. It is important to know that these interest rates are subject to change by the bank at their discretion. It is therefore recommended that you check the prevailing rates on recurring deposit by the bank before booking a recurring deposit.

Interest Rate for Resident Individuals & HUF
KMB Recurring Deposit Rates
TenureInterest Rate p.a. (%)Senior Citizen Rates p.a. (%)
6 Months7.00%7.50%
9 Months7.00%7.50%
12 Months7.30%7.80%
15 Months7.25%7.75%
18 Months7.25%7.75%
21 Months7.25%7.75%
24 Months7.25%7.75%
27 Months7.25%7.75%
30 Months7.25%7.75%
33 Months7.25%7.75%
3 years - less than 4 years7.10%7.60%
4 years - less than 5 years7.00%7.50%
5 years - 10years6.50%7.00%

Kotak Mahindra Bank Recurring Deposit Calculator

Kotak Mahindra Bank offers an online recurring deposit calculator by which you can find out how much can be earned and saved through monthly deposits in this scheme. It is an easy and simple online tool that can be used to understand the maturity amount and the date. The minimum tenure of recurring deposit will be 6 months and in multiples of 3 months upto a maximum of 10 years. The maximum value of recurring deposit per month for a tenure greater than 36 months is restricted too Rs. 25,000/- and for tenure upto 36 months, it is restricted to Rs. 1lac per month.

One needs to feed in the basic details of your investment like regular monthly deposit amount, tenure of the deposit to arrive at the maturity value and maturity date. This is very helpful in planning your financial goals and having a fair estimate of the returns. One can use multiple combinations of deposit amount and interest rate on the same tool. The prevailing interest rates are subject to change by the bank. It is therefore prudent to check what the rates are before booking a recurring deposit.

Who can open a Recurring Deposit account with Kotak Mahindra Bank?

All resident individuals, sole or joint and Non-Residents (NRIs) can open a recurring deposit account with Kotak Mahindra Bank.

Advantages of Opening Recurring Deposit Accounts

  • Recurring deposits offer higher interest rate over simple savings account and is comparable to fixed term deposits.
  • The documentation process for booking a recurring deposit is quite simple. For existing customers of a bank, this can be usually done through Net Banking. For new customers, a savings bank account would need to be opened with the bank and then a recurring deposit can be booked.
  • It is very helpful for salaried and limited income group of people to save money through small investments rather than bulky amounts.
  • Recurring deposits help in maintaining liquidity in your overall financial portfolio.
  • Recurring deposits are least affected by volatile market conditions.
  • One can start a recurring deposit with minimal investment amount.
  • A lump sum amount is earned at the end of the maturity tenure.
  • The tenure can be decided by the depositor hence, offers flexibility in financial planning.

Disadvantages of Opening Recurring Deposit Accounts

  • Some banks charge penalty for withdrawing your recurring deposit before the maturity period. Partial withdrawal is not allowed by almost all banks.
  • While this type of deposit can be treated as a long term investment plan, its returns are considered lower than Mutual Funds.

Kotak Mahindra Bank Recurring Deposit: FAQs

1. Is PAN card mandatory for opening a recurring deposit account?

Yes, PAN is mandatory for recurring deposit to avoid TDS deduction.

2. Will I get overdraft facility on my recurring deposit with Kotak Mahindra Bank?

Currently the bank does not offer overdraft facility with recurring deposit account.

3. If an instalment is delayed, what is penalty charge?

If the depositor delays the monthly instalment beyond the stipulated due date and a grace period of 5 days, a penal interest for the entire month will be charged. This will be 2% over and above the applicable recurring deposit Rate.

4. Do I earn interest if a premature closing of the recurring deposit account is done within the booking month?

There is no interest paid if the recurring deposit is closed in the same month as booking it. Only principal amount is returned.

5. How can I open a recurring deposit with Kotak Mahindra Bank?

There are different ways of opening a recurring deposit with Kotak Mahindra Bank. One can do it online through the net banking account. You can drop into the nearest Kotak Mahindra Bank branch and physically submit the application.

Customer Reviews

5 / 5 (3 Reviews)
29 Oct 2017

Very simple to understand the details. Really helpful.

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