Overview of Kotak Mahindra Bank
Kotak Mahindra Bank is one of the largest private sector bank in India in terms of market capitalization. It is headquartered in Mumbai, Maharashtra. In 2003, Reserve Bank of India (RBI) granted Kotak Mahindra Finance Ltd, the group's flagship company, the licence to conduct the business of banking. In the history of Indian banking industry, the conversion of Kotak Mahindra Finance Ltd. to a bank is a rare occurrence. In 2014, Kotak Mahindra Bank has extended its reach through a network of over 641 branches and approximately 1,159 ATMs spread across the nation.
Recurring Deposit from Kotak Mahindra Bank
Kotak Mahindra Bank offers unique recurring deposit schemes to help its customers maximize the returns from their savings. The RD comes with the facility of easy payment options by linking the customers Savings Account. The minimum amount of deposit to be made is very low and with attractive interest rates and no tax deduction at source(TDS) on the interest accrued on principal, the depositors can enjoy high yields.
Features of Kotak Mahindra Bank Recurring Deposit
This scheme aims to encourage the habit of saving through a monthly investment starting as low as Rs. 100/-.
Easy option of payment of installments through linking the customers Savings Account with RD account.
TDS is not applicable.
Simple and efficient RD schemes with low risk involved in the investment options.
The Recurring Deposit Advice will be sent to the customer’s registered address for correspondence, within 3 - 4 days of opening the RD account.
Only Resident Individuals including Minors and Hindu Undivided Families (HUF) are eligible for opening an Recurring Deposit with Kotak Mahindra Bank.
Interest rates offered on Kotak Mahindra Bank’s recurring deposit
Interest rates depend on the period for which the RD is opened for, the principal deposited, and the interest accrued which is compounded. The interest rate slab is subject to fluctuations and periodic changes. The applicable interest rates range between 8.50% to 9.00% and will be offered to the depositor based on the date and time the Bank receives the funds.
- How to open a recurring deposit account in Kotak Mahindra Bank? Interested customers can apply online or directly through a branch of the bank in order to open an RD account with Kotak Mahindra Bank.
- What is the Minimum & Maximum amount required to open recurring deposit in Kotak Mahindra Bank? Rs.100/- is the minimum amount that can be deposited. There is no maximum capping on investment.
- Is TDS (Tax Deductible at Source) applicable on Recurring Deposits? No. TDS is not applicable on Recurring Deposits.
- Do Senior citizens get any extra benefit on Recurring Deposits? Yes. Senior citizens are entitled to receive a 0.50% hike in interest over and above that of regular customers.
- How is the penalty on premature withdrawal of the Recurring calculated? In case of premature closure of RD account within a month, interest will not be paid out and only principal amount will be returned. On premature withdrawal of RD before maturity, the interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit remained with the bank, after deducting a penal charge of 0.5% on interest accrued.
Penalty on delay in payment of RD installment
In case of delay in payment of any installment after the grace period, a penal interest of 2% is applied on interest accrued on RD annually, or as specified by the Bank will be charged for the delayed month. Fraction of a month will be treated as full month for calculating this rate of interest. If the standing instruction has failed, the Bank will recover a standing instruction failure charge from the savings bank account. The total penalty on interest is recovered from the total amount of interest paid out by the bank and this recovery is done at the time of maturity or premature closure of the account.
Know the Current Recurring Deposit Rates
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