RD Interest Rate: After the latest amendment, the private sector bank is giving 7 percent interest rate per annum on RD tenure between 15 months to 21 months.
Kotak Bank RD Interest Rate: If you invest in Kotak Mahindra Bank’s RD account then you can get good returns. Because Kotak Mahindra Bank has increased the Recurring Deposit (RD) interest rates by 75 basis points. Due to which now you will get more interest on investing in RD account. After the latest revision, the private sector bank is offering an interest rate of 7 percent per annum on RD tenure between 15 months to 21 months. The interest rate on RD account has been increased by 75 basis points (100 basis points / bps = 1%) for a certain period. The bank has increased the interest rate on RDs of 6 months, 12 months, 15 months, 18 months and 21 months duration.
RD Interest Rate for Individuals
- Earlier 5 percent interest was being received on Kotak Bank’s 6 months RD, every month deposit of 10 thousand i.e. investment of 60 thousand was becoming 63 thousand on maturity, which will now be Rs 63450 according to 5.75 percent.
- Earlier 6.25 percent interest was being received on RD of 12 months, every month deposit of 10 thousand i.e. 120000 thousand was getting 127500 on maturity, which will now be Rs 128100 according to 6.75 percent.
- Earlier 6.50 percent interest was being received on RD of 15 months, every month deposit of 10 thousand i.e. 150000 thousand was getting 159750 on maturity, which will now be 160500 rupees according to 7 percent.
- Earlier 6.50 percent interest was being received on RD of 18 months, every month deposit of 10 thousand i.e. 180000 thousand was getting 191700 on maturity, which will now be 192600 rupees according to 7 percent.
- Earlier 6.50 percent interest was being received on RD of 21 months, every month deposit of 10 thousand i.e. 210000 thousand was getting 223650 on maturity, which will now be 224700 rupees according to 7 percent.
Interest rate for senior citizens
Kotak Bank has also increased the interest rate offered on RD account opened by senior citizens. The revision in RD account interest rate is only for fixed tenure and up to 50 bps. RD account interest rate has been increased for 6 months, 12 months, 15 months, 18 months and 21 months.
If senior citizens are planning to open an RD account then Kotak Mahindra Bank will be eligible for higher interest rates. The highest interest rate offered on RD accounts to senior citizens is 7.50 per cent per annum for a tenure between 15 months to 21 months.
- Senior citizens were earlier getting 6 percent interest on 6 months RD of Kotak Bank, deposit of 10 thousand every month i.e. investment of 60 thousand was becoming 63600 thousand on maturity, which will now be 63750 rupees according to 6.25 percent.
- Earlier 6.75 percent interest was being received on RD of 12 months, every month deposit of 10 thousand i.e. 120000 thousand was getting 128100 on maturity, which will now be 128700 rupees according to 7.25 percent.
- Earlier 7 percent interest was being received on RD of 15 months, every month a deposit of 10 thousand i.e. 150000 thousand was getting 160500 on maturity, which will now be Rs 161250 according to 7.50 percent.
- Earlier 7 percent interest was being received on RD of 18 months, every month the deposit of 10 thousand i.e. 180000 thousand was getting 192600 on maturity, which will now be 193500 rupees according to 7.50 percent.
- Earlier 7 percent interest was being received on RD of 21 months, every month a deposit of 10 thousand i.e. 210000 thousand was getting 224700 on maturity, which will now be Rs 225750 according to 7.50 percent.
Penalty on RD account
- The RD account holder is liable to pay the penalty if there is a delay in the payment of the stipulated RD installment or premature withdrawal from the RD account. Delay in payment of RD installment will attract penal interest. Penal interest will be applicable interest rate on RD account plus 2 per cent per annum.
- If the RD account holder fails to make the RD payment within the grace period of 5 days. The bank will also levy standing instruction failure charges from that bank account. In case of maturity or premature withdrawal, penal interest will be charged from the total amount of interest payable on the RD account.
- The penalty for premature withdrawal of RD depends on when it is withdrawn. If the RD account is closed prematurely within one month of deposit, no interest will be payable.
If the RD account is prematurely closed after one month but before the maturity date, the interest rate prevailing on the date of deposit, or the contracted rate, for the period the deposit remains with the bank. A penalty charge of 0.5 per cent will be levied on the interest rate before opting for a lower interest rate.
