Clickable arrow icon In this article
6 Mins

Kotak Bank RDs are investments that allow investors to save small amounts regularly. The bank has a tenure of 6 months to 10 years, and the interest rates vary with the tenure.

Kotak Bank RD Details

Normal Citizen Interest Rates6% to 7.10%
Senior Citizen Interest Rates6.5% to 7.60%
Premature Withdrawal Charges0.50%
Highest RD Rates7.60%
Minimum Deposit AmountRs. 100
Pending Instalment Penalty2%
Tenure6 Months -10 Year

Kotak Bank RD Interest Rates 2023

TenureGeneral Citizen Interest RatesSenior Citizen Interest Rates
18 Months7.20%7.70%
15 Months7.20%7.70%
21 Months7.20%7.70%
27 Months7.00%7.50%
24 Months7.00%7.50%
30 Months7.00%7.50%
12 Months7.00%7.50%
33 Months7.00%7.50%
3 years to less than 4 years6.50%7.00%
4 years to less than 5 years6.25%6.75%
5 years to 10years6.20%6.70%
9 Months6.00%6.50%
6 Months6.00%6.50%

*Kotak bank RD Interest rates are percentage per annum for both normal and senior citizens

Kotak Bank RD rates range between 6% to 7.10% p.a. for regular citizens. For senior citizens, the RD rates range between 6.5% to 7.60% p.a.. One can estimate the returns from their Kotak RD investment using a recurring deposit calculator. The RD rates of Kotak Mahindra Bank are higher than their saving account rates. The RD rate of interest differs based on the age of the investor, tenure of the investment, RBI policies and economic conditions in the country.

Interest earned on RDs is taxable as per the individual investor’s income tax slab rates. Also, investors have to present it under the head ‘Income from Other Sources’ while filing their income tax returns. Moreover, the bank has to deduct a TDS of 10% if the interest income exceeds INR 40,000 for regular citizens and for senior citizens, the TDS threshold limit is INR 50,000. Furthermore, this rate is applicable if the investor submits the PAN details or else, the applicable TDS rate is 20%.

Kotak Bank Recurring Deposits Features

  • Tenure: The Kotak bank recurring deposit tenure ranges between 6 months to 120 months, in multiples of 3 months
  • Minimum and Maximum Deposit Amount: The minimum amount of investment in Kotak bank RD is INR 100, and in its multiples thereafter. However, there is no limit on maximum RD investment.
  • Tax and TDS: Kotak bank RDs do not qualify for tax saving. The interest income that one earns from Kotak bank RDs is taxable as per the individual’s respective income tax slab rates. Moreover, Kotak bank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% TDS is applicable only when PAN details are furnished; else the bank cuts TDS at 20%.
    One can determine whether Kotak bank’s RD interest income is above or below the TDS threshold limit using the Kotak Bank RD Calculator. Also, investors can calculate their income tax liability using Scripbox’s Income Tax Calculator.
  • Premature withdrawal: Kotak bank allows investors to prematurely withdraw their recurring deposits. However, Kotak bank charges a penalty where the interest rate will be paid lower than the prevailing rate on the date of deposit or at the contracted rate. 
  • Nomination Facility: Depositors can nominate beneficiaries for their Kotak Bank RDs.
  • Convenience: Opening and managing recurring deposit investments are easy and convenient through Kotak bank’s online portal.

Requirements of Kotak Bank RD Scheme

Eligibility: Following are the eligibility criteria for opening a Kotak Bank RD account

  • Resident Individuals, including minors
  • HUFs
  • Sole Proprietary firms
  • Partnership firms
  • Companies
  • Associations and trusts
  • NRI’s

The above entities must have a savings account with Kotak Mahindra Bank.

Deposit and account: One can open a Kotak Bank recurring deposit account with a minimum investment of INR 100 and in multiples thereafter. However, there is no limit on the maximum investment amount for Kotak Bank RD.

Documents Required:

  • PAN Card,
  • Aadhar Card,
  • Driving licence,
  • Government ID card,
  • Senior Citizen Card
  • Utility bills,
  • Passport,
  • Bank statement with cheque,
  • Certificate or ID card issued by the post office

Withdrawal: Kotak Bank allows investors to prematurely withdraw their RD investment, however, with a penalty. The bank charges a penalty on the interest rate where the interest rate will be paid lower than the prevailing rate on the date of deposit or at the contracted rate.

Nomination: Kotak Bank RDs have a nomination facility where the account holder can nominate beneficiaries.

Types of Kotak Bank Recurring Deposit Schemes

Kotak Bank offers the following recurring deposit schemes:

Recurring Deposits

  • Tenure: 6 months – 120 months (in multiples of 3 months)
  • Minimum Deposit Amount: INR 100, and in multiples of it thereafter.
  • Maximum Deposit Amount: No limit
  • Tax Deducted at Source: Applicable
  • Nomination Facility: Available
  • Premature closure: Available, however, with a penalty of lower interest rate or contracted interest rate.
  • Penalty for late deposits: If the instalment is delayed beyond the stipulated due date + 5 days grace period, then penalty interest for the entire month is levied. Also, a delayed penalty charge of an additional 2% is applicable. 


Kotak Bank RDs are considered a good investment for investors who can save small amounts of money regularly. Recurring deposits are low risk investments as they offer guaranteed returns. Therefore, it is best suited for investors who prefer fixed returns from their investments. However, one has to consider the taxes levied on the interest earned on Kotak Bank RD investments.

Frequently Asked Questions

What are the limits on the minimum and maximum deposits?

The minimum deposit amount for Kotak RD is INR 100 per month. And, there is no maximum amount of investment in Kotak bank RD.

Can I open a recurring deposit account for a minor?

Yes, one can open a Kotak RD account on behalf of a minor.

How to apply for Kotak Bank RD?

One can open a Kotak Bank RD account through offline and online modes. For online mode, one has to visit the Kotak website. And for offline mode, one has to visit the nearest branch of Kotak Bank.
To be able to invest in Kotak Bank RD, one needs to have all valid documents. They need to have a Kotak RD application form, duly filled and signed and passport-size photographs. For ID proof, they need a PAN card, Aadhar card, voter ID, and driving licence and for proof of residence, they need an Aadhar card, utility bills, and a driving licence. For age proof, they need a birth certificate, matriculation certificate, and PAN card. 

Is it possible to renew an RD account?

Yes, it is possible to renew a Kotak Bank RD account. However, the renewal is possible as per Kotak Bank norms and rules.

Recurring Deposits Rates by Other Banks