What is a Kotak Bank RD Calculator?
The Kotak Mahindra Bank RD calculator is a free online tool designed for estimating the interest and maturity returns on recurring deposit investments.
How to use a Kotak RD Calculator?
To use the Kotak Bank RD calculator, follow these simple steps:
- Go to the official Kotak Mahindra Bank website or any other platform that provides the Kotak RD calculator.
- Input the amount you plan to deposit every month into the recurring deposit account.
- Choose the applicable interest rate for the Kotak RD scheme. The rates may vary based on the chosen tenure and type of customer (regular or senior citizen).
- Enter the duration for which you plan to keep the money invested in the recurring deposit. This is commonly referred to as the tenure.
- The calculator will display the calculated interest rate, maturity value, and the total wealth gained over the investment period.
Benefits of using a Kotak Recurring Deposit Calculator
The Kotak Bank RD calculator offers several benefits, making it a valuable tool for investors:
How is interest and maturity amount on an RD calculated?
Banks determine recurring deposit interest rates based on guidelines provided by the Reserve Bank of India (RBI). Generally, RD interest rates offered by most banks range between 5% and 7.50%. Interest on recurring deposits is compounded quarterly, and until then, the RD earns simple interest. For instance, if an investor starts an RD in August, it will earn simple interest until September. Compounding of interest occurs at the end of each quarter, meaning that the interest earned itself starts earning interest. The quarters for RD investments are April to June, July to September, October to December, and January to March.
What are the documents required to open an RD account in Kotak Bank?
To open an RD account with Kotak Mahindra Bank, you will need the following documents:
- Account opening form
- Recent passport-size photograph
- For Individuals and Companies: PAN Card, Voter’s ID, Aadhar Card, Passport Copy, and Driving License
- HUFs (Hindu Undivided Families): HUF declaration deed, self-attested PAN card, and HUF’s bank statement
- Partnership Firms: Certificate of Incorporation, Partnership deed, and ID proof of the partners.