Kotak FD Calculator

What is a Kotak Bank FD Calculator?

Kotak FD calculator is an online easy to use tool that helps you estimate the maturity of your investment. It helps you in calculating how much rate of interest you can earn by investing in a Fixed Deposit for a specific span of time. It only needs a little information as input to provide the required information. The output helps you in better understanding and planning your financial goals. 
However, you must understand that the calculator provides you only an estimation of the maturity amount and the wealth gained in the form of interest. You can know the exact maturity amount only once you invest in the fixed deposit with Kotak Bank.

Features of Kotak Bank FD Fixed Deposit

The Kotak Mahindra Bank provides a wide range of fixed deposits to choose from and helps you achieve your financial goals through investment in FD. With a seamless and simple process of opening an FD account, Kotak Bank makes it very easy to invest. 

The following are the features of Kotak Bank fixed deposit:

1. It provides attractive interest rates on FD to help you grow your money. An assured yield makes FD investment even more attractive.
2. You can invest in Kotak Bank Fixed Deposit with an amount as low as Rs 5,000. Moreover, there is no limit on the maximum amount of investment you can make.
3. Flexibility in tenure of Kotak Bank FD ranging from 7 days to 10 years.
4. You can choose to withdraw the interest amount periodically or withdraw at maturity. The flexibility is provided easily.
5. You can invest through internet banking or mobile banking. You don’t need to fill a form and visit the branch. However, you can choose to visit the nearest branch in case you want to open an FD offline.
6. Add a nominee for your Kotak Bank FD at the time of investment itself. You can also change it later.
7. Kotak Mahindra Bank also provides liquidity through a sweep-in FD facility.
8. You can also avail of the overdraft facility against your fixed deposit investment.

How to use Kotak FD Calculator?

For an investor, it is important to know what will be the yield/ return or interest in the long term before investing. This helps not only in comparing FDs provided by different banks but also comparing FD investment with other investment alternatives to FD.
Keeping this in mind you can use the Kotak Mahindra FD calculator by just entering a few details and get instant results. Further, you can use the fixed deposit calculator in 2 different approaches i.e. Investment Amount and Target Amount. Both the approaches are easy to use and provide the wealth to be gained.

Investment Amount Approach

You must use this approach when you have an amount for investment in mind and you wish to know the maturity value along with interest. 
The following steps will help you in using the Kotak FD calculator:

1. Provide the investment amount for the fixed deposit
2. Enter the investment duration in years or months of investment. To enter an investment duration such as 1.5 years enter the total number of months i.e. 18 months in this case.
3. Provide the rate of interest
4. Select the compounding period i.e. monthly, quarterly, half-yearly, or yearly. The compounding period is the payout tenure of the fixed deposit. The interest in FD depends and varies with the compounding period. Hence you must select this field appropriately. 
5. Lastly, provide the fixed deposit amount

Once you enter the details the Kotak fixed deposit calculator will provide the following information as an output:

1. The initial investment in fixed deposit
2. Maturity amount for the tenure
3. Wealth gained or interest earned.

Target Amount Approach

Using the ‘Target Amount’ approach you can know what amount you should invest today to get the target amount as maturity. Once you enter the target amount of investment the Kotak FD calculator does a back-calculation of the amount you need to invest and the interest income you will earn. Let’s say you have a future expense coming up and you wish to save today to cover up such expenses then this approach will be helpful. 
You must follow the following steps to use the Kotak FD calculator with the target amount approach:

1. Provide the target maturity amount for the fixed deposit
2. Enter the investment duration in years or months. 
3. Enter the rate of interest on fixed deposit
4. Select the compounding period i.e. monthly, quarterly, half-yearly, or yearly. The compounding period is the payout tenure of the fixed deposit. Since the interest earned on FD depends on the compounding period you must select this field appropriately. 

On the basis of the above inputs, you will get the output of the principal investment amount and interest to be earned on such principal amount. You can view the output as a chart representation and a tabular representation per period.

Benefits of Using Kotak FD Calculator

1. Knowing the estimated maturity and interest amount on your investment helps you make a better decision. Such a decision will help you in achieving your investment goal be it short-term or long-run. Kotak FD interest rates calculator helps you in estimating your returns and thus making a well-informed investment decision.  
2. The interest earned on any fixed deposit depends on investment amount, interest rate, compounding frequency, and tenure. To which factor is affecting the desired maturity amount you must use a fixed deposit calculator. The benefit of using the Kotak Bank FD calculator is that you can adjust these factors and compare the results.
3. Every bank/ NBFC provides a different rate for different types of fixed deposits. By using the calculator you can easily compare the maturity amount for different banks and NBFCs
4. There are other investment alternatives to fixed deposit investments. Before investing in a fixed deposit you can compare the returns and interest from other alternatives with fixed deposits. This comparison will help you in evaluating which investment option is better for your investment goals. Scripbox provides an online calculator for other investment calculators as well. You can use those calculators by visiting our website. 
5. You can perform the analysis using 2 different approaches. Firstly, through an initial investment amount approach and secondly, by using the target amount approach. With an investment goal in mind for tenure, it is essential that you invest the correct amount. The target amount approach will be evaluating what amount of funds you should invest today to get the desired wealth post maturity. Now let’s say you have a lumpsum amount of money in hand and wish to know the maturity amount then the investment amount approach is appropriate. 
6. Kotak FD calculator also provides a representation of results periodically in years. It provides the opening balance, interest earned and closing amount every year after year. This will help you in knowing the balance in real-time after every interest payout. 

How is Kotak Bank FD Interest Calculated?

The interest on a fixed deposit investment depends on a number of factors. Such factors are the principal amount of investment, tenure, compounding frequency, and interest rate. You can calculate the interest amount using 2 methods firstly, simple interest and secondly compound interest. Let us understand the formulation under both the methods with the help of an example:

Simple Interest on Fixed Deposit

Simple interest is the interest earned on the principal amount at a predetermined interest rate for a fixed tenure of investment.
Formula for calculation
Simple Interest = (P * R * T)/ 100
P- Principal amount invested, R- Rate of interest (%), T- Tenure
Example
Mr. Ajay invested Rs 10,000 for 5 years at an interest rate of 10% per annum.
Simple Interest = (Rs 10,000 * 10 * 5 years)/ 100 = Rs 5,000
Here, Principal amount invested (P) = Rs 10,000, Rate of interest (%) = 10% per annum, Tenure = 5 years
Maturity Value = Principal amount of Investment + Simple Interest earned during the tenure
Maturity Value = Rs 10,000 + Rs 5,000
Maturity Value = Rs 15,000

Compound Interest on Fixed Deposit

Compound interest is the interest earned on the principal amount of investment and the interest earned on such investment so far. The rate of interest is raised to the number of periods (years) for which the interest will be compounded and multiplied to the principal amount invested.
Formula for calculation
A = P (1+r/n) ^ (n * t)
A = Maturity Amount, P = Principal amount of investment, r = Rate of Interest (in decimals), n = number of compounding in a year, t = number of years
Example
Mr. Ajay invests Rs 10,000 for 5 years at an interest rate of 10% per annum compounded quarterly.
Here, Principal amount of investment = Rs 10,000, Interest Rate = 10%, Number of compounding in a year = 4 (once every quarter), Number of years of investment is 5 years
A (maturity amount) = 10,000 (1+0.10/4) ^ (4*5)
A (maturity amount) = Rs 16,386
Interest amount = Rs 16,386 – Rs 10,000 = Rs 6,386

Frequently Asked Questions