Kotak Mahindra Bank provides three types of FD schemes to its customers to invest in. If a customer wants to check the interest he/she will earn on the principal amount, Kotak FD calculator can be of great help as it lets you calculate the interest that your money will earn when invested in a fixed deposit in Kotak Bank.
This calculator computes the details of the investment, i.e. the principal amount on maturity after the interest is compounded on days or a monthly, quarterly, half-yearly, and yearly basis. The FD calculator of Kotak requires the deposit amount, tenure and applicable Kotak Mahindra FD rates to calculate the maturity amount.
In this article
Kotak FD Interest Rates
|7 days – 14 days||3.25% – 3.75%|
|15 days – 30 days||3.75% – 4.25%|
|31 days – 45 days||4.00% – 4.50%|
|46 days – 90 days||4.75% – 5.25%|
|91 days – 120 days||4.75% – 5.25%|
|121 days – 179 days||5.00% – 5.50%|
|181 days – 269 days||5.50% – 6.00%|
|271 days – 363 days||5.50% – 6.00%|
|4 years – 4 years 364 days||5.90% – 6.40%|
|365 days – 389 days||5.75% – 6.25%|
|364 days||5.50% – 6.00%|
|2 years – 2 years 364 days||5.90% – 6.40%|
|3 years – 3 years 364 days||5.90% – 6.40%|
|5 years – 10 years||5.50% – 6.00%|
|391 days – 22 months 29 days||5.90% – 6.40%|
|180 days||5.50% – 6.00%|
|270 days||5.50% – 6.00%|
|390 days||5.90% – 6.40%|
|23 months||5.90% – 6.40%|
|23 months 1 day – 1 year 11 months 29 days||5.90% – 6.40%|
Various Factors that Affect Kotak FD Interest Earnings?
The Kotak FD maturity amount that you will get depends upon
Rate of Interest: It is the rate at which the returns are compounded on your principal amount according to the tenure chosen.
Time Period: Along with factors such as the principal amount and the rate of interest, the duration of the investment is also a crucial factor. Based on your FD tenure the rate of interest is decided.
Principal Investment Amount: It is the main deciding factor. The interest is earned on the principal amount, which is the amount deposited by you at the time of opening the account.
Compounding Frequency: The interest on fixed deposits is compounded in different ways, i.e. quarterly, monthly, yearly, and half-yearly. This time interval plays an important role in determining the maturity value on completion of the tenure of the term deposits.
Kotak Bank FD Term wise Interest Rates
Kotak Bank Short-term FD Interest: For a Kotak FD with tenure ranging from 7 days to 365 days, the interest rate offered is from 3.50% p.a. to 6.40% p.a. These deposits are known as short term deposits as they have a tenure less than 1 year.
Kotak Bank Medium-term FD Rate: Medium-term fixed deposits have their tenures ranging from more than 1 year to less than 5 years. The interest offered by the bank on these deposits ranges from 6.25% p.a. to 6.40% p.a.
Kotak Bank Long-term Deposit FD Interest: These deposits’ tenure ranges from 5 years to 10 years and offers an interest rate of 6.25% p.a.
How is Kotak Bank FD Interest calculated?
The interest of Kotak Bank FD is calculated with the help of the formula given below:
A = P(1+r/n)^nt
A = Maturity amount
P = Invested amount
r = Interest rate as a decimal
n = number of times interest is compounded
t = tenure of the deposit
However, the online Kotak Fixed Deposit calculator can be used anytime to estimate the value of interest earned on the deposited amount in a hassle-free way.
Kotak Bank Revised Interest Rates
Kotak Bank has recently changed its FD rates which can be helpful while calculating the interest rate with a calculator. The FD rates for short term FD, I.e. 7 to 14 days is 3.50%, for 15 to 30 days it is 4% and 31 to 45 days it is 4.50%. The fixed deposit rate for the short tenure of 46 to 90 days is 5.10%, for 91 to 120 days it is 5.25% and it is 5.30% for 121 to 179 days.
Furthermore, the FD rate for 180 days is 5.75%, for 181 to 270 days it is 5.80% and it is 6.05% for 271 to 364 days. Kotak Fixed deposit rate for long tenures of 12 to 23 months is 6.20%, for 23 months one day to less than four years is 6.10% and for four years one day to 10 years is 6%. The revised Kotak FD rates came into effect from 5 March 2020.
Kotak FD Interest Payout and Reinvestment
Kotak bank provides two options for interest payment. First is interested payout, in which the accrued interest is paid to the investor regularly at the frequency chosen. It can be either paid out on a monthly, quarterly, semi-annual, or annual basis.
The other option is the reinvestment of interest in which the interest is not immediately paid but held and reinvested with the original deposit amount. This reinvestment is, however, done after deducting tax at source (TDS). Reinvestment often leads to higher returns because the principal on which interest is calculated is enhanced every time the interest gets accrued.
An important thing to note here is the FD rates remain the same for both types of interest payment options. One can use the Kotak Bank Fixed Deposit calculator to determine the interest in both the options.
Tax on Kotak Fixed Deposit
In case the interest earned by you across all your fixed deposits in a year exceeds 40,000, the bank will deduct TDS at a rate of 10%. Furthermore, if your PAN is not updated in the Kotak Bank records, it must deduct twice the TDS, I.e. at the rate of 20%. So, updating your PAN details on your FD is imperative.
The account holder would also need to add the interest income across all Kotak Bank FD’s and other FD’s to their taxable income for the year. Based upon the tax bracket, income tax is payable on this income.
Kotak bank FD calculator – FAQs
Ques. What is the highest interest rate offered by Kotak Bank on a fixed deposit?
Ans. A maximum interest of 6.25% can be earned on Kotak Bank fixed deposit.
Ques. What details does a Kotak bank FD calculator ask for?
Ans. It simply asks for basic details pertaining to your FD account such as the principal amount, rate of interest, tenure and compounding frequency.
Ques. How many types of FDs are provided by Kotak Bank?
Ans. The bank provides 3 different types of fixed deposit schemes, viz.
- Regular Fixed Deposit
- Tax Saving Fixed Deposit
- Senior Citizen Fixed Deposit