Kotak Mahindra Bank Recurring Deposit (RD) Interest Rates 2025

Kotak Mahindra Bank, one of the largest private banks in India, offers recurring deposits (RDs) to its customers to help them build their savings in a disciplined manner. With a recurring deposit, you can easily build a large corpus over time with only small contributions. RDs are among the safest and most reliable investments.

Kotak Bank interest rates are quite competitive, ranging from 6.00% p.a. to 7.90% p.a. for regular depositors and senior citizens. Learn about Kotak Bank’s interest rates and RD schemes. 

Kotak Bank Recurring Deposit Scheme Highlights for 2025

Here are the key highlights of Kotak Bank RDs:

Kotak Bank RD Interest Rate 2025

The following interest rates are applicable for resident individuals and Hindu Undivided Families (HUFs):

How to Calculate Kotak Bank RD Interest Rate?

You can use the compound interest formula to calculate the maturity amount and interest payment from a Kotak Bank RD. Here’s the formula:

Formula = A = P (1+r/n) ^ (nt) 

Here:

• A = Maturity Amount
• P = Principal
• N = Compounding Frequency
• R = RD interest rate
• t = Tenure.

Example

Let’s understand the calculation of RD interest with an example:

Mr Sharma, who is below 60 years of age, has decided to open an RD account with Kotak Mahindra Bank. He starts a deposit of Rs. 5,000 per month for 3 years. The applicable Kotak Bank recurring deposit interest rate is 7% p.a.

A = 5000 (1+7%/4) ^ (36*4) 

In this case, the total interest Mr Sharma will get is Rs. 20,687 which makes the total maturity amount Rs. 2,00,687. 

With the help of the Kotak Bank RD online calculator, you can get the estimated returns based on the tenure and monthly deposit amount. It allows you to instantly get accurate results without any errors. 

Features of Kotak Bank RD Interest Rates

Here are the main features of Kotak Bank RDs:

• Maturity: The minimum maturity period for recurring deposits is 6 months, and in multiples of 3 months thereafter, up to 10 years. 
• Deposit Amounts: The minimum amount required to open a Kotak Bank RD is Rs. 100 per month, while the maximum amount you can deposit is Rs. 1 lakh per month. 
• Interest Rate: Kotak Bank RD interest rates are the same as fixed deposit rates. Senior citizens are granted an additional 0.5% p.a. interest rate over regular citizens. Interest is paid upon maturity or premature withdrawal.
• Eligible Applicants: A Kotak Bank RD account can be opened in the name of a minor. It can also be held jointly. 
• Penalty on Delays in Payment: If the depositor fails to pay the instalment, an interest rate equal to the agreed-upon rate plus 2% is charged for the month of default or delay. 
• Premature Penalty: For early withdrawals before the end of the tenure, a penalty of 0.5% to 1% p.a. is charged. 
• TDS Deductions: TDS (tax deducted at source) is applicable to the interest earned from an RD account at the prevailing rates.

Eligibility for Opening Kotak Bank RD Account

Here’s who can open a Kotak Bank recurring deposit:

• Any resident Indian
• Hindu Undivided Family (HUF)
• Senior citizens
• Minors under the supervision of parents/guardians
• Must have a savings account with Kotak Bank

Documents Required for Opening Kotak Bank RD Account

You will need several documents to open a savings account with Kotak Bank, with which you can open a recurring deposit. This includes:

• ID Proof: Aadhaar card, Voter ID card, passport, driving licence or PAN card
• Address Proof: Voter ID card, utility bills, bank statement, passbook or driving licence
• Signature Proof: Driving licence, Passport or PAN card
• Passport size photographs

How to Open a Kotak Bank RD Account?

Any individual who has a savings account with Kotak Mahindra Bank can open an RD. A minimum deposit amount of Rs. 100 is required to open an RD account. You will need various ID proofs, such as a PAN card, Aadhaar card, driving licence or Voter ID card, to open an account.

The following channels can be used to open a Kotak Bank RD:

• Online via Kotak Net Banking
• At the nearest Kotak Mahindra Bank branch
• By calling the 24x7 number- 1860 266 2666

Existing Kotak Bank customers can log in to their net banking account to open an RD. New users have to first open a savings account online or offline first. To open a savings account, you can:

1. Go to the official website of Kotak Bank and navigate to ‘Accounts & Deposits’ > ‘Savings Account’.
2. Click on ‘Open a Savings Account’.
3. Fill in the required details, such as name, city, PIN code, phone number, etc.
4. Agree to the terms and conditions and click on ‘Apply Now’.

How to Close Kotak Bank RD Account?

You can close your Kotak Bank recurring deposit online or by going to the nearest bank branch. Before closing, you should be aware of premature withdrawal penalties and account closure charges (applicable for closing an account within 1-6 months).

To close your savings account, you need to submit the account closure form at the nearest branch. In addition, you have to submit all remaining cheques and your debit card. You also need to carry original ID proof. 

Benefits of Kotak Bank RD Account

Here are some of the benefits of opening a recurring deposit with Kotak Bank:

• Competitive Interest Rate: Recurring deposits provide higher interest rates than savings accounts, making them ideal choices for long-term investments.
• Guaranteed Returns: RDs provide a fixed interest rate that guarantees returns safe from market fluctuations. 
• Disciplined Savings: The auto debit facility and lock-in period of recurring deposits ensure that you keep saving in a disciplined manner.  
• Flexible Tenures: Whether you want to set aside funds for short-term goals like a vacation or long-term goals like buying a house, Kotak’s RDs provide flexible maturity periods for the same. 
• Easy Account Opening: You need only a Kotak savings account to open an RD without extensive documentation. Furthermore, you don’t need to visit a bank branch, as RDs can be opened online. 

Kotak Bank RD Premature Withdrawal Rules

If you want to withdraw your savings before the end of the tenure, here’s what you need to know: 

• Upon premature withdrawal, the bank will pay interest at the prevailing rate (on the withdrawal date) or the agreed-upon rate, whichever is lower.
• The penalty is 0.5% p.a. on the RD deposits for tenures between 6 months and less than 12 months. For longer tenures, the penalty is 1% p.a. 
• No interest is payable if you make a withdrawal before one month from opening an RD.
• Kotak Bank does not allow partial withdrawals on RDs. 

With just Rs. 100 per month, you can set aside funds for the future with a Kotak Bank recurring deposit. Kotak Bank FD interest rates are competitive, ranging from 6% to 7.4% p.a. for regular citizens and 6.5% to 7.9% p.a. for senior citizens. It’s an ideal option for risk-averse investors to save money for their short-term and long-term goals.