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Kotak Bank RD Interest Rates 2020

Kotak Bank RD Rate of Interest, 2020

Last Updated 25th Sep 2020

Tenure General Rates Senior Citizen Rates
12 months 5.50% 6.00%
15 months 5.50% 6.00%
18 months 5.50% 6.00%
21 months 5.50% 6.00%
24 months 5.00% 5.50%
27 months 5.00% 5.50%
30 months 5.00% 5.50%
33 months 5.00% 5.50%
3 years to 3 years 364 days 5.00% 5.50%
4 years to 4 years 364 days 5.00% 5.50%
5 years to 10 years 5.00% 5.50%
Kotak Bank RD Calculator
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Kotak Bank Recurring Deposit

  • Kotak Bank offers RD interest rates up to 5.50%
  • Interest on RD with Kotak Bank is compounded quarterly.
  • Kotak Bank accepts minimum deposits starting at Rs. 100.
  • For senior citizens Kotak Bank offers RD rate upto 6.00%.
Kotak RD Rates - Special Features
  • RD account can be opened in the name of minor
  • Nomination facility is available
  • The deposit tenure ranges from 12 months to 120 months
  • The minimum amount can deposited in multiples of Rs. 5,000 or Rs. 10,000
  • Visit any Kotak Bank branch to avail this service
  • TDS deductions are subject to the existing income tax rules as at the time of opening the RD account
  • Penalty on non payment of the periodic deposit is Rate of RD interest rate + 2% p.a

Kotak Bank Recurring Deposit Schemes Types

Based on the tenure Kotak Bank Recurring Deposit can be classified into three types, these are:

Short-Term RD

 

Under this type of Kotak Bank Recurring Deposit your deposit’s tenure ranges between 6 months to 3 years. Such RD is best suited for those who are looking to develop the habit of savings. 

Medium-Term RD

When you are not willing to commit for the long tenure and are not sure how much benefit you can get from RD, then opting for medium term recurring deposit is a good decision. It provides the right balance of flexibility and commitment to invest  so that you can assess its benefits. The tenure basically ranges between 3 years to 7 years. 

Long-Term RD

The long term RD is best suited when you want to earn the return on your investment but do not have the lump sum amount to invest in fixed deposit. By investing recurring deposits you get the flexibility of making monthly investments, and earn the return similar to FD. The tenure basically ranges between 7 years to 10 years.

Kotak Bank RD Account

Kotak Bank offers recurring deposit option to their customers to park their periodically generated surplus savings for a fixed tenure. A customer is required to make a deposit once into their RD account at the time of opening the account with the bank. The customer then makes periodic deposits and withdraws any money in the account during the tenure of the deposit.

Regular RD

  • Nomination facility is available
  • The minimum tenure of this RD is 12 months
  • The minimum deposit to be made in this account is Rs. 100
  • The minimum amount can deposited in multiples of Rs. 5,000 or Rs. 10,000

Kotak Bank Recurring Deposit Rates

There are some factors that affect Kotak Bank Recurring Deposit interest rates. These are as follows:

  • Policies Framed by RBI : The change in Cash Reserve Ratio (CRR) and repo rate as directed by the RBI affect the interest rate of all banking instruments including the recurring deposit.
  • Recession – In times of recession, RBI releases funds in the market and hence injecting liquidity in the market. As a result of high liquidity and low credit demand, banks reduce the rates on RD.
  • Inflation – Inflation has a positive effect on a fixed deposit interest rate. Hence, RD rates tend to be higher in a period of rising inflation.
  • Current State of Economy – In a booming economy, people take larger credit to meet their personal and business requirements. In periods of high credit demand, banks offer higher interest rate to garner more funds through recurring deposits.

Kotak Bank RD Interest Calculator

RD maturity amount that you will get depends on the following three parameters

  • Deposit amount – This is the initial amount deposited by a customer in Kotak Bank. Higher interest rate might be offered on larger deposits. Kotak Bank offers deposit amount starting at Rs. 100.
  • Rate of Interest- Kotak Bank offers a higher rate of interest on recurring deposits of longer tenure and lower interest rate on deposits held for a shorter period. Highest interest rate offered by Kotak Bank is 5.50% for deposit amount.
  • Period of deposit- Bank offers low interest rate for short tenure RDs and higher interest rate for long tenure RDs.

Duration of Recurring Deposits with Kotak Bank

You can open a Recurring Deposit account with Kotak Bank for a minimum tenure of 12 months which can go up to maximum tenure of 120 months.

Premature withdrawal of RD with Kotak Bank

Premature withdrawal of RD with Kotak Bank Bank is allowed. Kotak Bank Bank may charge a nominal amount of penalty as per their banking norms.
Penalty on non payment of the periodic deposit is Rate of RD interest rate + 2% p.aHowever, Partial withdrawal of RD account is not allowed.

Penalty for delayed installment of RD with Kotak Bank

Bank may give you grace of some days if you delay the payment beyond the due date. In case you do not pay your installment after due date, Kotak Bank Bank will charge a penalty as per their norms.
Penalty on non payment of the periodic deposit is Rate of RD interest rate + 2% p.a

Illustration: Mr. A opens a RD account for tenure of 1 year with periodic deposits of ₹ 5,000 per month at an interest rate of 5.50%. In this case, the maturity amount at the end of 1 year will be ₹ 61,809 and includes the collected principal and total interest earned on the principal amount during the period at ₹ 1,809. Similarly, you can calculate the interest and maturity amount for higher tenures by using RD calculator.

FAQs

What is the eligibility for opening an RD account?

Indian residents and HUF (Hindu Undivided Families) can open RD account. NRIs can also open the RD account through NRO and NRE accounts.
Banks provide RD scheme for minors as well, under the guardianship of parents to supervise their finances.

What is the general tenure/duration of Kotak Bank Recurring Deposits?

Kotak Bank RD can be opened for minimum 12 months to maximum tenure of 120 months.

Is premature withdrawal allowed in RD accounts?

The amount can only be withdrawn on maturity. In case of emergency you can break your RD before maturity, but after that your account will be closed. Banks may deduct 1 or 2 percent penalty from the interest accrued on your RD amount for the period for which the amount was with the bank.In Kotak Bank, Penalty on non payment of the periodic deposit is Rate of RD interest rate + 2% p.a.
The minimum lock in period is 3 months and if the depositor request a premature withdrawal before that, he earns zero interest and only the principal amount will be refunded to him. Apart from cancelled interest, any incentives offered are also withdrawn.

Is partial withdrawal of RD accounts allowed by Kotak Bank?

Partial withdrawal of recurring deposit is not allowed by Kotak Bank. However, some banks offer the facility to obtain Loan or Overdraft by keeping your RD as collateral. On the other hand, premature withdrawals are allowed by post offices if you have an RD account with them for at least a year. The withdrawn amount is considered a loan, which has to be paid in lump sum.
Premature Closure is allowed, but with some penalty.

What exactly happens on maturity of RD account?

On maturity of your RD account, you can ask the bank to transfer the principal amount and the accumulated interest component directly into your linked savings account. You can also invest your RD amount in fixed deposits after maturity.

Is nomination facility available in Kotak Bank RD account?

Nomination facility is available in Kotak Bank recurring deposits. Whether you open it in single name or joint name, only one nominee per account is permissible. You should ensure that the nomination is followed as per RBI rules. You can change the nominee through declaration in appropriate form.


Kotak News - Sep 2020
  • 2020-07-27 : Kotak Mahindra Bank Q1 net dips 8.5% to Rs. 1,244 cr
    Kotak Mahindra Bank reported a fall of 8.5% in its standalone net profit at Rs.1,244 crores for the quarter ending 30 June 2020. It was Rs. 1,360 crores in the year-ago period. The net interest income backed by retail loans home, personal, gold, car loans and two-wheeler loans along with business and mudra loans increased by 17.81% to Rs. 3,723.85 crore.
  • 2020-04-08 : Kotak Mahindra Bank Q4 deposits grew by 20%
    Kotak Mahindra Bank reported 20% year on year increase in its FD and RD base to Rs 2.59 trillion in the quarter ending March 2020 against Rs 2.16 trillion in the corresponding quarter of the preceding year. In addition to this, advances of the bank reported an increase of 6.7 per cent in Q4 FY20 to Rs 2.2 trillion compared to Rs 2.05 trillion a year ago.
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