Kotak Mahindra Bank brings attractive Recurring Deposit schemes so that depositors can make the best with their investment. It starts a recurring deposit account with a very low amount of minimum installment, along with a lucrative rate of interest, which makes it a preferred place to invest money.
Any person who is an Indian resident can open a Recurring Deposit Account with Kotak Mahindra Bank. The category includes minors and members of Hindu undivided families too. The account can either be opened by visiting the nearest branch of the bank or online too, making it very convenient for the customers.
Features of Kotak Mahindra Bank Recurring Deposit Scheme:
- The recurring deposit scheme of Kotak Mahindra Bank starts at only a deposit of Rs 100 and this is a great way to encourage saving habit amongst the customers. There is no maximum cap on the monthly deposit amount.
- The payment of monthly installment is made easy by linking the RD account directly with the Savings Account of the customer.
- The schemes are easy to understand and there is minimal risk of investment involved.
- TDS is not applicable on Kotak Mahindra Bank Recurring Deposit.
- The customer will receive Recurring Deposit Advice at his correspondence address and this will come to him within a period of 3-4 days of opening the RD account with the bank.
Kotak Mahindra Bank Interest Rate on Recurring Deposit:
The interest rate offered by Kotak Mahindra Bank on recurring deposit schemes depends upon a number of factors, such as the principal amount, the time period of the recurring deposit and the interest accrued.
There may be periodic fluctuations and may change from time to time. It varies between 6.25% and 6.80%, while the senior citizens are given an extra 0.5% over the regular interest rate offered on RD by Kotak Mahindra Bank. Below rates are effective from 20 December 2018.
Kotak Mahindra Bank RD Interest Rates February 2019:
|Time Period||Normal Interest Rate||Senior citizen rates|
|3 Years to 4 Years||7.10%||7.60%|
|4 Years to 5 Years||7.00%||7.50%|
|5 Years to 10 Years||6.50%||7.00%|
Table Updated: 17 February 2019
If the account is closed prematurely within a month’s period, only the principal amount will be returned to the customer and he gets no interest. When the RD is withdrawn before it is matured.
The interest will be paid at the prevailing interest rate of the bank and its tenure would be from the date of the deposit till the date of withdrawal of the account. However, a penalty of 0.5% on the interest amount accrued would be charged from the customer.
Delayed Payment of Installment in Recurring Deposit Account
When a customer fails to pay the installment of recurring deposit account with Kotak Mahindra Bank, he would be penalized with 2% on annual interest accrued on the recurring deposit, or as specified beforehand, for the delayed month.
When there is a delay of a fraction of a month, even that will be taken as a full month for calculating this penalty. If the client has given a standing instruction regarding withdrawal of installment from the Savings Account and this instruction has failed, a standing instruction failure charge would be recovered from the Savings Account.
The penalty is deducted from the amount of interest accrued and it is done at the time of the closure of the account, whether on its maturity or in case of premature closure.