Kotak Mahindra Recurring Deposit Interest Rates
Kotak Mahindra Bank Recurring Deposit
A Recurring Deposit (RD) is a form of a term deposit which allows you to deposit a fixed amount on a periodic basis with your bank, and earn interest income on it. It is similar to a Fixed Deposit (FD) in that you enjoy a higher amount of interest than a savings account for the chosen tenure on the principal amount.
The main difference between a Fixed Deposit and a Recurring Deposit is that an RD allows you to make small ongoing periodic investments in the deposit (as per your budget), whereas in a fixed deposit, you need to deposit the entire lump amount at the time you open the FD account.
Advantages to opening an RD account:
- An RD account can be opened with a small initial amount
- The rate of interest is higher as compared to an ordinary saving bank account
- Lump sum received at maturity along with the interest amount.
- Interest Rate similar to that of an FD
- Flexible tenures to suit the budget of the individual
- Recurring Deposit Interest rate is fixed, assuring the customer of a guaranteed fixed return
- Loan / overdraft facility available with some major banks.
- The interest earned might be lower to other, more riskier forms of investment, say investing in mutual funds, etc. But the investment is secure from market fluctuations.
- Breaking a Recurring Deposit in times of need might attract penalty charges, depending up on the bank’s policy and affect the interest outcome.
Kotak Mahindra Recurring Deposit
An RD in Kotak Mahindra instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed tenure. You can make fixed monthly installments to a Kotak Mahindra bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance. An RD helps to:
- Create an emergency fund
- Save money for down payment for your home / vehicle
- Allow you to save for a luxurious vacation
- Fund your child’s higher education
- Fulfil your other financial goals – whether short-term or long-term
Key Features of Kotak Mahindra RD Account
- Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment in an FD
- Make significant savings by investing small amounts each month.
- Ideal for people with a regular, steady income who may not be able to spare enough money to open an FD.
- Flexible tenures which can range from a few months to several years.
- Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
- Safe, low-risk form of investment.
- Easy payment options for existing customers from their Savings Account
Types of Recurring Deposits Offered by Kotak Mahindra Bank:
Regular Recurring Deposit:
- Minimum amount for Kotak Mahindra RD account: Rs.100 & Maximum Amount: Rs. 25,000 (Rs.1,00,000 for tenure up to 36 months)
- Preferential interest rate for senior citizens
- TDS in Interest applicable
- Deposit period: 12 months to 120 months
- Premature Closure of RD Allowed
Holiday builder Recurring Deposit:
- This is a collaboration by Kotak Mahindra bank and Thomas Cook to offer a unique savings plan for holiday goers.
- This scheme allows individuals to save a small amount of their income on a monthly basis to avail a vacation package to specified domestic/international destinations.
- Save for your holiday with a Recurring Deposit for 12 months; receive the 13th Installment free (T&C apply)
- The value of monthly installment of RD is determined basis the cost of the package.
- At the end of the RD period, the maturity amount will be paid to Thomas Cook for implementation of the holiday package.
Kotak Mahindra Recurring Deposit Interest Rates
Kotak Mahindra bank RD interest rate is similar to rates offered for FD accounts. You can get the best rates for a Kotak Mahindra Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Kotak Mahindra bank RD interest rates including Kotak Mahindra Bank Short-Term RD Interest Rates. For the latest RD interest rates in Kotak Mahindra, it is advisable to check with the bank directly.
Kotak Mahindra bank recurring deposit interest rates 2015 – 2016 (For resident Individuals and HUF)
|Tenure||Interest Rate p.a. (%)|
|12 Months||6.75 %|
|15 Months||6.50 %|
|18 Months||6.50 %|
|21 Months||6.50 %|
|24 Months||6.25 %|
|27 Months||6.25 %|
|30 Months||6.25 %|
|33 Months||6.25 %|
|3 years - less than 4 years||6.25 %|
|4 years - less than 5 years||6.25 %|
|5 years - 10years||6.25 %|
Kotak Mahindra Bank Senior Citizen RD Interest Rates
|Tenure||Senior Citizen Rates p.a. (%)|
|12 Months||7.25 %|
|15 Months||7.00 %|
|18 Months||7.00 %|
|21 Months||7.00 %|
|24 Months||6.75 %|
|27 Months||6.75 %|
|30 Months||6.75 %|
|33 Months||6.75 %|
|3 years - less than 4 years||6.75 %|
|4 years - less than 5 years||6.75 %|
|5 years - 10years||6.75 %|
Kotak Mahindra Bank RD Calculator:
You can make use of the Kotak Bank RD Calculator to compute the interest and the maturity earned on your invested amount. You only need to enter the amount you want to invest monthly and the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit.
Kotak Mahindra Bank RD FAQs
What is the minimum amount required to open an RD with Kotak Mahindra?
The minimum opening balance for a regular recurring deposit with Kotak Mahindra bank is Rs. 100.
What is the minimum and maximum deposit period?
The minimum deposit tenure is 12 months and the maximum period is 120 months.
How do I apply for a regular recurring deposit?
You can open an RD with Kotak Mahindra in any of the following ways:
- Online through their website. Simply fill in your details in the online form and submit it. A bank representative will get in touch with you to process your request further.
- Book online via Kotak NetBanking
- Call Kotak Mahindra 24 x 7 customer care - 1860 266 2666
- Visit your nearest branch and submit the required form along with the supporting documentation.
What is the documentation required to open an RD account?
You will require the following documents:
- Filled-in application form
- Passport size photograph
- Proof of residence and ID proof
- PAN card
- Any other KYC documents as deemed fit by the bank
Who is eligible to open an RD with Kotak Mahindra bank?
Any individual resident (including Minor) & HUF can book a recurring deposit with Kotak Bank.