Kotak Mahindra Bank’s Recurring Deposit is a valuable saving scheme that offers a good interest rate so you can reach your financial goals sooner. This article brings to you all the important details you need to know before you open an RD account with Kotak Mahindra Bank.

1. Recurring Deposit Interest Rates 2021 of Kotak Mahindra Bank

The interest rates given in the table below apply to deposits less than Rs.1 crore and applicable to domestic customers with effect from 19 December 2020.

Deposit Tenure

Interest Rates for Regular Customers (% p.a.)*

Interest Rates for Senior Citizens (% p.a.)*

6 months

4.40

4.90

9 months

4.40

4.90

12 months

4.50

5

15 months

4.75

5.25

18 months

4.75

5.25

21 months

4.75

5.25

24 months

4.75

5.25

27 months

4.75

5.25

30 months

4.75

5.25

33 months

4.75

5.25

3 years < 4 years

4.75

5.25

4 years < 5 years

4.75

5.25

5 years < 10years

4.50

5

*Interest rates are subject to change from time to time.

2. Different Types of Kotak Mahindra Bank RD Schemes

Recurring Deposits: Kotak Mahindra Bank offers this scheme for you to achieve your goals. The bank allows you to choose the monthly instalment amount and tenure of the RD account, at the end of which you receive guaranteed returns at the prevailing interest rates. You can easily make payments from your savings account.

3. Kotak Mahindra Bank RD Special Features and Benefits

  • The minimum amount you need to open an RD account is Rs.500.
  • The account’s minimum tenure is six months, and in multiples of three months; it can go up to 10 years.
  • Get attractive interest rates on your deposits.
  • Senior citizens get an additional 0.50% interest rate over and above the rates applicable to regular customers.
  • Premature withdrawal is allowed subject to certain conditions and penalties.
  • Interest will be paid out upon maturity.

4. Basic Eligibility Criteria for Kotak Mahindra Bank RD

  • Resident Indians
  • Hindu Undivided Families (HUFs)
  • Senior citizens
  • Minors under the supervision of parents/guardians

5. Tax Benefits on Kotak Mahindra Bank Recurring Deposit

As per the Income Tax Act, 1961, income tax will be deducted at source by the bank based on the interest earned on the FD and RD accounts across the bank branches. TDS will be applicable at 10%.

It is now reduced to 7.5% due to the pandemic effective between May 2020 until March 2021. You can submit Form 15G/15H to the bank requesting not to deduct tax at source if your annual income is within the basic exemption limit.

6. RD Interest Rate Calculator

Our free RD calculator helps you figure out the returns you can expect based on the monthly instalment amount you are ready to invest over a specified tenure.


Frequently Asked Questions (FAQs)

What is the maximum monthly instalment allowed for Kotak Mahindra Bank RD account?
The maximum monthly deposit amount for a tenure greater than 36 months is restricted to Rs.25,000. When it comes to tenure up to 36 months, the monthly deposit amount is restricted to Rs.1 lakh.
Is it necessary that I have/provide PAN while opening an RD account?
It is recommended to provide your PAN while opening an RD account. Upon providing PAN details, the TDS rate applicable will be relatively lower than an account opened without providing PAN details.
Is overdraft facility available on Kotak Mahindra Bank RD account?
No. Currently, the bank is not providing an overdraft facility on RD accounts.
Can I choose to receive monthly or quarterly interest payout?
As per the bank guidelines, the interest will only be paid out upon maturity or on premature withdrawal. Monthly and quarterly payouts are currently not available.
How do I open an RD account with Kotak Mahindra Bank?
You can use one of the following channels to open an RD account with Kotak Mahindra Bank:
  • Call 1860 266 2666
  • Login to your Kotak Net Banking account
  • Visit the nearest Kotak Mahindra Bank branch

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