Kotak Mahindra Bank FD Premature Withdrawal Penalty Calculator

What is the Kotak Mahindra Bank FD Premature Withdrawal Calculator?

The Kotak Mahindra Bank FD premature calculator is a helpful tool that shows how much you’ll receive if you close your FD before maturity. The bank allows premature withdrawal of FD, but with a penalty imposed on the interest rate. Kotak Mahindra Bank FD Premature Withdrawal results in a lower payout amount than expected due to the penalty imposed. Therefore, checking the revised amount before proceeding with the withdrawal is important. 

Benefits of Kotak Mahindra Bank FD Premature Withdrawal Penalty Calculator

The following are the advantages of the Kotak Mahindra Bank FD premature withdrawal penalty calculator: 

• Quick Estimation: You get an instant and accurate idea of the effective FD interest rates you’ll receive if you withdraw your FD early.
• Clear Decision-Making: Get a payout estimate post-penalty to assess if closing the FD is better than options like a loan, overdraft, or partial withdrawal.
• Time-Saving with a Simple interface: The Kotak Mahindra Bank FD premature calculator helps avoid manual calculations, allowing time savings compared to physical bank visits.
• Personalised Results: The calculator adjusts the results based on Axis Bank’s policies for general customers and senior citizens, ensuring accuracy.

How Does the Kotak Mahindra Bank FD Premature Withdrawal Penalty Calculator Work?

Once you provide the input, the calculator applies Kotak Bank’s premature withdrawal rules and uses the given compound interest for computing the final amount:

The following are examples of the calculation process for both general and senior citizens:

1. For General Citizens

   A general citizen invested in a Kotak Mahindra Bank Fixed Deposit.

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 6.75%
   • Premature Withdrawal: After 1 year and 3 months (approx. 455 days)

   On the booking date, Kotak Mahindra Bank FD rates were 6.50% interest for FDs held between 1 year and 25 days and less than 13 months.

   Interest Calculation:

   • Applicable Rate for Period Held: 6.50%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 6.50% – 1.00% = 5.50%

   Outcome: The general citizen will earn interest at 5.50% for 1 year and 3 months, instead of the originally booked 6.75% for 2 years.

2. For Senior Citizens

   Consider a senior citizen investing in the same FD.

   • Investment Amount: ₹1,00,000
   • Original Tenure: 2 years at a booked rate of 6.90%
   • Premature Withdrawal: After 1 year and 3 months (approx. 455 days)

   On the booking date, Kotak Mahindra Bank senior citizen FD rates were 7.00% for deposits between 1 year 11 days and less than 13 months.

   Interest Calculation:

   • Applicable Rate for Period Held: 7.00%
   • Penalty Deduction: 1.00%
   • Final Interest Rate: 7.00% – 1.00% = 6.00%

   Outcome: The senior citizen will earn interest at 6.00% for the actual holding period of 1 year and 3 months, instead of the booked 6.90% for 2 years.

   Note: Senior citizens typically receive 0.50% higher FD interest rates than general citizens on most tenures. 

Kotak Mahindra Bank FD Premature Withdrawal Penalty Charges

Kotak Mahindra Bank FD premature withdrawal penalty charges apply when you close your deposit prematurely, reducing the effective FD interest rates. 

Tax saving FDs do not allow premature withdrawal unless in special cases like the holder's demise or a court order.

Key Takeaways

The Kotak Mahindra Bank FD premature withdrawal penalty calculator is useful for clarifying the amount and deductions if you close an FD before maturity. It helps you understand the reduced interest based on the period for which the deposit is held and considers a 0.50% to 1% penalty rate. Instead of using the original booked rate, the Kotak Mahindra Bank FD premature withdrawal penalty calculator applies the interest rate for the actual tenure, helping you make informed decisions.