Kotak Mahindra Bank Recurring Deposit Rate

The Kotak Mahindra Bank Recurring Deposits are designed in a way that it helps in achieving your financial goals on your own terms. This recurring deposit gives you the freedom to choose the term and the amount you wish to deposit on a monthly basis. At the end of the maturity term, there is guaranteed return at the applicable interest rate. It is a good option to save your money and maximize your returns.

Benefits of Kotak Mahindra Bank Recurring Deposits

• A convenient scheme to make monthly investment of small amounts to save for future
• It suits salaried category and people with limited income who cannot make huge investments in one-go
• Kotak Mahindra Bank offers easy payment options from the savings bank account
• Recurring deposit is a low risk investment option and hence guaranteed returns
• It is least affected by market volatility

Features of Kotak Mahindra Bank Recurring Deposits

• The minimum deposit amount is Rs.100/- and can go upto Rs 50,000/- every month for 10-year period
• Interest is paid on maturity or on the premature closure of the recurring deposit
• The recurring deposit must be invested for a minimum period of 12 months and thereafter in multiples of 3 months upto a maximum period of 120 months
• One can open, monitor and close recurring deposit account through Net banking service of Kotak Mahindra Bank
• TDS is applicable on the interest paid/accrued on recurring deposit account
• The deposit holder can claim exemption from TDS by submitting Form 15G/15H
• Additional interest rate of 0.50% for senior citizens of all periods
• Nomination facility is available

Kotak Mahindra Bank Recurring Deposit Interest Rates

The recurring deposit interest rate is higher than Savings Account and is equal to the Fixed Term Deposit rate. It is important to know that these interest rates are subject to change by the bank at their discretion. It is therefore recommended that you check the prevailing rates on recurring deposit by the bank before booking a recurring deposit.

Kotak Mahindra Bank Recurring Deposit Calculator

Kotak Mahindra Bank offers an online recurring deposit calculator by which you can find out how much can be earned and saved through monthly deposits in this scheme. It is an easy and simple online tool that can be used to understand the maturity amount and the date. The minimum tenure of recurring deposit will be 6 months and in multiples of 3 months upto a maximum of 10 years. The maximum value of recurring deposit per month for a tenure greater than 36 months is restricted too Rs. 25,000/- and for tenure upto 36 months, it is restricted to Rs. 1lac per month.

One needs to feed in the basic details of your investment like regular monthly deposit amount, tenure of the deposit to arrive at the maturity value and maturity date. This is very helpful in planning your financial goals and having a fair estimate of the returns. One can use multiple combinations of deposit amount and interest rate on the same tool. The prevailing interest rates are subject to change by the bank. It is therefore prudent to check what the rates are before booking a recurring deposit.

Who can open a Recurring Deposit account with Kotak Mahindra Bank?

All resident individuals, sole or joint and Non-Residents (NRIs) can open a recurring deposit account with Kotak Mahindra Bank.

Advantages of Opening Recurring Deposit Accounts

• Recurring deposits offer higher interest rate over simple savings account and is comparable to fixed term deposits.
• The documentation process for booking a recurring deposit is quite simple. For existing customers of a bank, this can be usually done through Net Banking. For new customers, a savings bank account would need to be opened with the bank and then a recurring deposit can be booked.
• It is very helpful for salaried and limited income group of people to save money through small investments rather than bulky amounts.
• Recurring deposits help in maintaining liquidity in your overall financial portfolio.
• Recurring deposits are least affected by volatile market conditions.
• One can start a recurring deposit with minimal investment amount.
• A lump sum amount is earned at the end of the maturity tenure.
• The tenure can be decided by the depositor hence, offers flexibility in financial planning.

Disadvantages of Opening Recurring Deposit Accounts

• Some banks charge penalty for withdrawing your recurring deposit before the maturity period. Partial withdrawal is not allowed by almost all banks.
• While this type of deposit can be treated as a long term investment plan, its returns are considered lower than Mutual Funds.

Kotak Mahindra Bank Recurring Deposit: FAQs