The Kotak FD maturity amount that you will receive depends upon the following factors:
Rate of Interest: It is the rate at which the returns are compounded on your principal amount, depending on the tenure chosen.
Time period: The investment duration is another important factor based on which the interest rate is decided.
Principal investment amount: It is the crucial deciding factor. The interest is earned on the principal amount, which is the amount that you deposited at the time of opening the FD account.
Compounding frequency: The interest on fixed deposits is compounded in various ways, such as quarterly, monthly, yearly, and half-yearly. This time interval plays a significant role in determining the maturity value upon completion of the tenure of the term deposits.
FD Term | Interest Rate |
Highest slab rate | 7.30% (for 23 months to less than 2 years) |
For 1 year | 7.10% |
For 2 years | 7.15% |
For 3 years | 7.00% |
For 4 years | 7.00% |
For 5 years | 6.20% |
Tax-Saving FD | 6.20% |
Note: All the above interest rates are updated as of 27 February 2024
The interest amount can be calculated using the following method
Formula for calculation
A = P (1+r/n) ^ (n x t)
In which,
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
Let’s assume you invested Rs 10,000 for five years at an interest rate of 7% per annum compounded quarterly.
A (maturity amount) = 10,000 (1+0.7/4) ^ (4 x 5)
A (maturity amount) = Rs 13,501
Interest amount = Rs 13,501 – Rs 10,000 = Rs 3,501
Kotak Bank offers two options for interest payment. First is the interest payout, where the accrued interest is paid to the investor regularly as per the frequency chosen. It could be either paid out on a monthly, quarterly or annual basis.
Second is the reinvestment of interest option, where the interest is not paid immediately but held and reinvested with the original deposit amount. However, this reinvestment is initiated after deducting tax at source (TDS). Reinvestment often results in higher returns because the principal on which interest is calculated is enhanced each time the interest gets accrued.
It is important to note that the FD rates remain the same for both interest payment options. An investor can use the Kotak Bank Fixed Deposit calculator to determine the interest in both options.
In case the interest earned by an investor across all your fixed deposits in a year is over Rs 40,000, the bank will deduct tax dedicated at source (TDS) at a rate of 10%.
In addition, in case your Permanent Account Number (PAN) is not updated in the Kotak Bank records, it will deduct twice the TDS, which is at the rate of 20%.
The account holder also needs to add the interest income across all Kotak Bank FDs and other FDs to their taxable income for the fiscal year. Based upon the income tax slab bracket, tax is payable on this income.
Tenure | Interest Rate (% pa) |
7-14 Days | 2.75 |
15-30 Days | 3.00 |
31-45 Days | 3.25 |
46-90 Days | 3.50 |
91-120 Days | 4.00 |
121-179 Days | 4.25 |
180 Days | 7.00 |
181-269 Days | 6.00 |
270 Days | 6.00 |
271-363 Days | 6.00 |
364 Days | 6.50 |
365-389 Days | 7.10 |
390 Days (12 months 24 Days) | 7.40 |
391 Days to less than 23 months | 7.40 |
23 months | 7.30 |
23 months 1 Day to less than 2 years | 7.30 |
2 years to less than 3 years | 7.15 |
3 years to less than 4 years | 7.00 |
4 years to less than 5 years | 7.00 |
5 years to 10 years | 6.20 |
Other Banks FD Calculators:
1. Fixed Deposit (FD) Calculator
2. SBI FD Calculator
3. HDFC Bank FD Calculator
4. Axis Bank FD Calculator
5. ICICI Bank FD Calculator
6. Punjab Bank FD Calculator
7. Canara Bank FD Calculator