Kotak Bank FD Calculator

Kotak Bank FD Calculator makes things look simple by providing the requisite output of interest earned and the final maturity value. Chalking out a financial plan worthy enough to meet life goals has never been easier. The Mumbai-based Kotak Mahindra Bank was launched in 2003, providing innovative savings options to the customers to tailor them to their preferences. The Kotak FD Calculator facilitates every desire in a range of Fixed Deposit products offering terms from 7 days to 10 years at attractive interest rates.

How Does a Kotak Bank FD Calculator Work?

The primary inputs sought by the versatile Kotak Bank FD Calculator are the proposed investment amount, the tenure, type of product, and customer. The online tool is equipped to validate the inputs per the defined FD schemes to calculate the outcome. Needless to say, the applicable interest rate is automatically populated and the results displayed on the monitor show the accrued interest, maturity amount, and the applied interest rate. The user is free to try out varied combinations to make an informed choice.

Interestingly, the interest rate varies on several critical factors like the amount, tenure, FD type, and the customer’s age. The Senior Citizen is entitled to a preferential higher interest rate. Similarly, domestic and NRI customers have separate interest rate regimens. The deposit schemes for domestic and NRI customers are unique. The applied interest to their chosen investment scheme is thus different. However, the Kotak FD Calculator primarily caters to domestic customers, as the government and RBI regulations govern NRI customers. Additionally, NRI account types are dependent on the fund source.

Simple Interest vs. Compound Interest

We have seen how the Kotak FD Calculator helps the investor design a choice Fixed Deposit with the applicable interest rate automatically applied based on the output. But the vast period range necessitates the application of either simple or compound interest, as the case may be. A brief description of them will be of immense academic import to the investor.

  • Simple Interest: The principal earns a fixed interest depending on the deposit tenure, size, and customer nature. In simple words, the amount on which the interest is applied remains constant throughout the deposit tenure. Using the variables I (interest), P (principal), N (tenure), and R (interest rate), the following formula calculates the interest.

I = PNR/100 if R is not in decimals.

  • Compound Interest: It is slightly more complex, described as an interest-earning interest in non-technical language. It is possible by adding the accrued interest to the principal at the next interest application. The sequence continues over the deposit period, thereby delivering a cumulative maturity amount to the investor.  The variables used are I (interest), P (principal), T (tenure), N (compounding frequency in a year), and R (interest rate). The following formula calculates A, the maturity amount using the same variables. It is pertinent to mention that the Kotak Bank FD Calculator factors in a quarterly compounding frequency.

A = P (1 + R/N) ^ N*T

Having learnt about the types of interest and the impact on the cumulative interest accrual, let us now checkup the interest rates used by the Kotak Bank FD Calculator. 

Domestic /NRE/ NRO Fixed  Deposit Interest Rates w.e.f. 26/04/2021 for  investment up to Rs 2 Crore

Tenure

Regular  Customer

Senior Citizens

% rate PA

Annualized Yield

% rate PA

Annualized Yield

7 to 30 d

2.50

2.50

3.00

3.00

31 to 90 d

2.75

2.75

3.25

3.25

91 to 120 d

3.00

3.00

3.50

3.50

121 d to 179 d

3.25

3.25

3.75

3.75

180 d

4.40

4.40

4.90

4.90

181 d to 364 d

4.40

4.45

4.90

4.96

365 d to 389 d

4.50

4.58

5.00

5.09

390 d to <  23 m

4.80

4.89

5.30

5.41

23 m to < 3 y

5.00

5.09

5.50

5.61

3 y to < 4 y

5.10

5.20

5.60

5.72

4 y to < 5 y

5.25

5.35

5.75

5.88

5 y to 10 y

5.30

5.41

5.80

5.93

Legend

D =  days, m = month, y = year

Premature Withdrawal

Allowed

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Domestic /NRE/ NRO Fixed  Deposit Interest Rates w.e.f. 12/05/2021

Tenure

Amount Range (Rs)

2 Crore < 5 Crore

5 Crore to < 10 Crore

10 Crore to < 25 Crore

25 Crore and above

7 to 30 d

2.50

2.50

3.00

3.00

31 to 60 d

2.75

2.75

3.25

3.25

61 d to 120 d

3.00

3.35

3.35

3.35

91 to 120 d

3.00

3.00

3.50

3.50

121 d to 179 d

3.00

3.50

3.50

3.50

180 d

3.75

3.65

3.65

3.65

181 d to 270 d

3.75

3.80

3.80

3.80

271 d to 279 d

2.90

2.75

2.75

2.75

280 d to <  12 m

3.80

3.80

3.80

3.80

12 m to < 15 m

4.00

3.85

3.85

3.85

15 m to < 18 m

4.15

4.10

4.10

4.10

18 m  to < 2  y

4.25

4.25

4.25

4.25

2 y to < 3 y

4.50

4.25

4.25

4.25

3 y to < 4 y

4.60

4.50

4.50

4.50

4 y to < 5 y

4.75

4.50

4.50

4.50

5 y to 7 y

5.00

4.50

4.50

4.50

Legend

D =  days, m = month, y = year

Premature Withdrawal

Allowed

The above grids demonstrate that the Kotak Bank FD Calculator is the only option to calculate the interest and the maturity amount factoring in so many variables. 

FD interest have fallen consistently over the last 5 years.
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How to use Policybazaar Kotak Bank FD Calculator?

We are already aware that the Kotak Bank FD Calculator is available round-the-clock at the bank’s official portal and aggregators. PolicyBazaar offers the facility to use the calculator using the same inputs. The only difference is that the bank is selected to access the relevant data to populate the necessary fields. The sequential inputs are:

  • Choice of Fixed Deposit for interest payment impact:
  • Cumulative
  • Quarterly interest is paid every 3 months.
  • Monthly payout.
  • Short Deposit from 7 days to 180 days attracting simple interest.
  • Deposit Amount: The minimum acceptable amount is Rs.5000
  • Tenure
  • Date for registration.

One single tap after this on the calculate button instantly displays the outcome for making an informed choice.

Advantages of Using Kotak Mahindra Bank FD Calculator:

The online Kotak FD Calculator is a handy tool that helps draw the contours of the proposed Fixed Deposit. The user gets the following advantages for using it.

  • It is available 24/7 in the bank’s official and aggregator portal.
  • The service is free and can be used any number of times till a satisfactory outcome is achieved.
  • It is fast and accurate, eliminating a time-consuming manual calculation.
  • It populates the relevant interest field with the applicable interest rate.
  • The output displays the maturity amount, accrued interest, and the applicable rate.  
  • It assists the proper deployment of funds and tax planning.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

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Written By: PolicyBazaar - Updated: 24 June 2021
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