Kotak Bank RD Interest Rates – Open RD Account Online

Kotak Bank is one of the best private banking institutions in India, offering attractive interest rates and investment options. Among all available options, its recurring deposit (RD) is highly popular among risk-averse investors. A high-yielding and assured yield of the Kotak Bank RD interest rate encourages individuals to save money regularly.

In recurring deposit accounts, account holders can invest a small amount of money every month and achieve their financial goals. Continue reading to learn more about the recurring deposit of Kotak Bank.       

Kotak Bank RD Interest Rates 2024 (Under ₹2 Crores)

Note: The above-mentioned Kotak Bank RD interest rates are effective from 25th October 2023.

Features of Kotak Bank Recurring Deposit Interest Rates

By choosing Kotak Bank recurring deposit interest rates, you can avail the following features and benefits. 

• Investors have the flexibility to withdraw their RDs prematurely, albeit incurring a penalty. 
• The interest earned from Kotak Bank RD is taxable based on the individual’s income tax slab rates. 
• Opening and managing RD investments are simplified through Kotak Bank’s user-friendly online portal.
• The minimum investment amount is ₹100, with subsequent multiples accepted. There is no maximum limit on RD investment.
• The RD tenure spans from 6 to 120 months, with intervals of 3 months, providing investors with flexible options.
• The Kotak recurring deposit is available for resident individuals and Hindu Undivided Families (HUFs) exclusively.
• Depositors can nominate beneficiaries for their Kotak Bank RDs, ensuring a smooth transfer of benefits.

How to Open Kotak Bank RD Account Online?

Opening an RD Account with Kotak Bank online can be done through two convenient methods. Let’s discuss these methods. 

1. Mobile Banking 

Here is a step-by-step guide on how to open a Kotak Bank recurring deposit online using its mobile banking app. 

• Step 1: Download the Kotak Mobile Banking App on your device. 
• Step 2: Navigate to the ‘Investment’ section on the main menu. 
• Step 3: Click on the ‘Fixed/Recurring Deposits’ option. 
• Step 4: Choose ‘Open Recurring Deposit’ to initiate the process.

2. Net Banking

Here is a stepwise process you need to follow to avail the attractive Kotak RD interest rates through the net banking portal. 

• Step 1: Log in to your Kotak Net Banking account with your registered credentials. If you are not a registered customer, then you need to sign in. 
• Step 2: Navigate to the ‘Banking’ section. 
• Step 3: Click on ‘Deposits’. 
• Step 4: Opt for “Open Fixed/Recurring Deposit’. 
• Step 5: Specify ‘Recurring Deposit’ to proceed with the application process. 

How to Open an Kotak Bank RD Account Offline?

To open a Recurring Deposit account with Kotak Bank offline, follow the below-mentioned steps. 

• Step 1: Visit the nearest branch of Kotak Bank where you hold a savings account.
• Step 2: Fill in the application form, providing all necessary details such as the instalment amount, deposit tenure, nominee information, preferred payment mode and your particulars.
• Step 3: Make the initial instalment payment using cheque or cash. 
• Step 4: Submit the duly filled application form along with the payment.

After submitting the application form, the bank official will process your request and proceed with the necessary steps to set up your Kotak recurring deposit account.

How to Calculate RD Interest Rates in Kotak Bank?

Kotak Bank RD interest rate is calculated quarterly on a compounded basis. Before investing your money in an RD account, you must calculate the maturity value of such an investment. Here are the two common ways of doing so. 

Formula 

Individuals can use the following mathematical formula to determine the maturity value and the amount of interest earned from an RD investment made with Kotak Bank. 

A = P * (1+r/n) ^ (nt)

Here,

• t = tenure (in months) 
• n = number of times the interest is compounded
• r = rate of interest
• P = monthly instalment
• A = maturity amount 

Suppose you want to open a Kotak recurring deposit of ₹5,000 for 5 years, offering an interest rate of 6.70%. 

As per the formula, 

A = 5000 * (1 + 6.70/4) ^ (4 * 60) = ₹3,56,829

Using RD interest rates calculation formula, the total interest amount at the end of the tenure will be ₹56,829 and the total maturity amount will be ₹3,56,829.

Kotak Bank RD Interest Calculator

Although simple, manual calculation of RD interest using the formula can be time-consuming. For more accurate and instant results, you can use Kotak Bank RD calculator to determine the maturity value of your investment. Let’s find out how. 

• Step 1: Visit the official webpage of Kotak Bank RD calculator. 
• Step 2: Specify the type of customer you are. If you are above 60 years of age, click on ‘Senior Citizen’. 
• Step 3: Enter the amount of your regular monthly deposit. You can also use the slide bar to input the amount. 
• Step 4: Enter the tenure. 

The Kotak Bank RD calculator will automatically display the maturity value of your RD investment. 

Eligibility Criteria to Start an RD Account with Kotak Bank

To initiate an RD Account with Kotak Bank, you must meet the following eligibility criteria. 

1. Any resident individual is eligible to avail an RD account.
2. Minors can open an RD account under legal guardianship.
3. Corporate companies, proprietorships, government and commercial organisations are eligible to open RD accounts.

Documents Required for Kotak Bank RD Account

Here is a set of documents that an individual has to submit to the bank to reap benefits from the current Kotak RD interest rates 2023. 

1. Proof of Identity 

• PAN Card 
• Aadhar Card
• Driving Licence
• Government ID Card
• Senior Citizen Card

2. Proof of Address 

• Utility Bills
• Passport
• Bank Statement with Cheque

Kotak Bank RD Premature Withdrawal Rules

Here are some of the important premature withdrawal rules of the Kotak recurring deposits. 

1. If you close the recurring deposit within a month of its opening, you will be returned only the principal amount. You will incur no interest on your deposited amount nor any penalty charges will be applied to the account.  
2. All recurring deposit account holders can withdraw their money at any time before maturity. However, the bank will charge a penalty for the premature withdrawal.
3. The bank does not allow account holders to withdraw their deposits partially. 

Kotak Bank RD Penalty

Here are all the penalties Kotak Bank levies on their recurring deposit accounts. 

1. If you withdraw your RD investment prematurely, the bank will charge a premature withdrawal penalty charge of 0.5% on the amount deposited. They will pay you the interest according to the rate of interest from the first deposit or the contracted interest yield, whichever is lower. 
2. In case of a delay in the instalment payment beyond the due date, including a grace period of 5 days, the bank will charge a penalty of 2% on the instalment amount. Additionally, they will not levy the interest for that particular month.  

How to Close a Kotak Bank RD Account Online?

Here is a step-by-step guide on how to close your Kotak Bank recurring deposit. 

• Step 1: Visit the official website of Kotak Bank. 
• Step 2: Log in with your credentials such as Customer Relations Number (CRN) and the password.   
• Step 3: Submit the OTP sent to your registered Email ID or mobile number. 
• Step 4: Navigate to the Banking section and click on ‘Deposit’.
• Step 5: Tap on the ‘Deposit Summary’ section. 
• Step 6: Select the Recurring Deposit option and click on the Premature Withdrawal of Deposit. 
• Step 7: Specify the bank account in which you want your money to be credited.  
• Step 7: Enter your RD withdrawal amount and click on ‘Confirm’ to close your account.

How to Close Kotak Bank RD Account Offline?

If you are not able to close your Kotak Bank account online, here is a step-by-step guide on how to close Kotak Bank RD account offline. 

• Step 1: Visit the nearest branch of Kotak Bank. 
• Step 2: Ask for the Kotak Bank RD Account Closure Form. 
• Step 3: Fill up the form correctly with all the necessary documents. 
• Step 4: Attach your Know Your Customer (KYC) documents along with the form. 
• Step 5: Submit your Kotak Bank RD interest rate certificate or RD Receipt. 

TDS on Kotak Bank RD

The interest earned from Kotak Bank’s recurring deposit is subject to taxation, as per the Income Tax Act, 1961. The tax will be deducted at source against the amount of interest by the bank. This is applicable for both the FD and RD accounts across all Kotak Bank branches. The bank charges 10% TDS on the income made from RD interest. 

However, banks allow TDS exemptions on the interest earned up to ₹40,000 for general citizens and ₹50,000 for senior citizens. To avail this exemption, individuals need to submit Form 15G/15H to the bank. 

Final Word

Hopefully, now you have a comprehensive idea of the Kotak Bank RD interest rates. If you are planning to invest in an RD, a Kotak recurring deposit can be a great option for you. It offers one of the most competitive interest rates among the other banks and NBFCs that offer recurring deposits.    

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.