PremiumOne of the leading private bankers, Kotak Mahindra Bank on Wednesday revised the interest rates on recurring deposits (RD). The tenures under RD vary from 6 months to 10 years. For senior citizens, the interest rates on RD vary from 6.25% to 7.50%, while for general category depositors the rates range from 5.75% to 7%. At Kotak, the interest rates on RDs are offered based on the date and time of receipt of the funds by the bank. These rates are applicable for resident individuals and HUFs only.
The new interest rates have come into effect from December 28, 2022.
Here are the latest rates on Kotak's recurring deposits:
General category:
The bank is offering the highest rate of 7% on tenures like 15 months, 18 months, and 21 months. While the interest rate is at 6.75% for 12 months. Further, the bank gives a 6.40% rate on RDs with tenures of 24 months, 27 months, 30 months, and 33 months.
On 3-years to less than 4 years tenure, the rate is set at 6.30%, while the rate is at 6.25% on 4 years - less than 5 years tenure, and at 6.20% on 5 years - 10-years tenures.
For shorter tenures, the rate is at 5.75% from 6 months and 9 months.
Senior citizens:
The bank gives as high as a 7.5% rate on 15 months, 18 months, and 21 months tenure RDs. For 12 months' tenure, the interest rate is at 7.25%.
Further, the interest rate is at 6.90% on 24 months, 27 months, 30 months, and 33 months tenures. While the rate is at 6.80% on 3 years - less than 4 years, at 6.75% on 4 years - less than 5 years, and 6.70% on 5 years - 10 years tenure.
The interest rate is at 6.25% for elderlies on short tenures like 6 months and 9 months each.
Penalties:
On its website, Kotak stated that in case of delay in payment of any instalment post grace period of 5 days, penal interest at the rate of RD interest rate (contracted rate of interest at the time of booking of the RD) + 2% per annum or such other rate as may be specified by Bank from time to time, will be charged for the month of delay.
Also, even if the payment for the month is honoured, but the standing instruction towards instalment recovery has failed, the Bank will recover a standing instruction failure charge from the current / savings bank account as per General Features and Schedule of Charges (GFSC).
Further, it said, the total penal interest chargeable shall be recovered from the total amount of interest payable by the bank and shall be recovered only at the time of maturity or premature closure of the account as the case may be.
Notably, a fraction of a month will be treated as the full month to calculate such interest.
Premature withdrawal of RDs:
According to Kotak's website, in case of premature closure of this deposit within a month, no interest shall be paid and only the principal amount will be returned.
Moreover, it stated that on premature withdrawal of RD, the interest will be paid at the rate prevailing on the date of deposit for the tenure the deposit remained with the bank or at the contracted rate, whichever is lower post deducting penal charge of 0.5% on premature withdrawal of deposit.