Kotak Mahindra Bank Ltd.

Private sector lender, Kotak Mahindra Bank has launched a specially designed savings bank account for children up to 18 years of age ‘Kotak Junior’. The bank has also started a 10-year recurring deposit (RD) for long term financial planning. The interest rates on savings accounts for children and on the RD would be same as being currently offered on general savings bank accounts and fixed deposits, respectively.

The bank currently offers 5.5% interest on savings account balances of up to Rs 1 lakh and 6% on balances above Rs 1 lakh. The bank’s FD rates are: 8.50% for three years and less than four years, 8.25% for 4-7 years and 8% for above seven years and up to 10 years.

The ‘Kotak Junior’ account can be linked to the RD as well as a Systematic Investment Plan with a minimum investment of Rs 5,000 into mutual funds. The account will provide a membership-cum-debit card.