Kotak FD Calculator
The Kotak Fixed Deposit calculator is a tool that helps you calculate the interest amount and maturity value in an FD. The calculator takes into account the amount of deposit, deposit term, and rate of interest per annum and generates the result.
A fixed deposit is an investment scheme where you invest a lumpsum amount with a bank or a financial institution for a specified period. At the end of the tenure, the financial institution returns your principal investment amount along with the interest accrued up until that point.
There are different types of fixed deposits, including cumulative and non-cumulative FDs. In cumulative fixed deposits, you will receive a lump sum amount (principal and interest) at the end of the FD tenure. In non-cumulative fixed deposits, you can choose to receive interest payments monthly, quarterly, half-yearly, or annually, depending upon your needs.
How Does The Kotak FD Calculator Work?
The formula to calculate the maturity amount for non-cumulative FDs is:
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
t is the tenure in years
The formula to calculate the maturity amount for cumulative FDs is:
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
n is the number of times the amount is compounded
t is the tenure in years
Example:
Ms. Sameera is looking to invest ₹7 lakhs in an FD scheme. The scheme offers an interest of 8%. The tenure of the FD is 10 years. She wishes to receive her interest payout every year.
Here’s how we can calculate her interest payout.
M = P + (P x t x r / 100)
M = 7,00,000 + (7,00,000 x 7 x 0.08)
M = ₹12,60,000
Interest = 12,60,000 - 7,00,000
Interest = ₹5,60,000
Interest payout every year = 5,60,000 / 10 = ₹5,600
Let’s use the same example and see how much Ms. Sameera can earn if she chooses to keep her interest until maturity.
M = P (1 + r/n) ^ (n x t)
M = 7,00,000 (1 + 0.08) ^ (1 x 10)
M = ₹15,45,628
If Ms. Sameera invests ₹7 lakhs in a cumulative FD, earning her an interest of 8% for a tenure of 10 years, she would earn a maturity amount of ₹15.45 lakhs.
How To Use The Kotak FD Calculator?
Below are the steps to use the fixed deposit calculator properly.
- Enter the amount you wish to deposit in the FD scheme.
- Key in the interest rate offered by the scheme.
- Mention the duration in which you plan to stay invested in the scheme.
Once the details are entered, the calculator will show you the maturity amount and the interest amount.
Benefits Of Using The Kotak FD Calculator
The following are the advantages of using an FD calculator.
- The fixed deposit calculator simplifies the complex calculations involved in estimating the maturity value. It helps you generate maturity value based on customisable inputs.
- The calculator estimates the interest income and maturity value in a matter of seconds.
- The calculator gives accurate results concerning maturity value and interest earnings.
- The calculator helps you in comparing different FDs.
- The calculator is free to use with unlimited access.