Fixed Deposit Calculator

What is FD Calculator

A fixed deposit typically offers a higher interest rate than a savings account. It is a great way to build a fund that you can use for a vacation, higher education, buying something big or an emergency. It is also a safe way to make your money grow for retirement planning.

Since interest rates can be different depending on the amount and tenure of an FD, it's a good idea to use a fixed deposit calculator to effortlessly make the right decision.

Advantages of using a fixed deposit calculator

Did you know that the term (time to maturity) for your FD can range from 7 days to 10 years? The interest rate you earn depends on the amount and term of the fixed deposit as well as the applicant's age.

Here's how an FD interest calculator helps:

• FD calculations are prone to error when done manually. The Kotak811 FD calculator simplifies the task for your convenience. It considers all factors and generates accurate results within seconds.
• An FD calculator lists the amount, interest rate, term, total returns on maturity, and interest earned side-by-side to give you the complete picture.
• It saves time and effort. This allows you to make informed decisions and apply for the fixed deposit that is most suited to your needs.
• A well-designed fixed deposit interest calculator lets you compare different options for interest rates and maturity terms to make a decision.

How are fixed deposit interest and returns calculated?

There are two types of interest rates on fixed deposits:

Simple interest: It is applied only to the principal amount. It is calculated as:

A = P + [(P x I x T)/100]

Compound interest: It is applied to the principal amount plus the previously accumulated interest. It is calculated as:

A = P x [(1 + I/N) ^ NT]

Where:

A = Maturity amount
P = Principal amount invested
I = Interest rate (usually as a percentage on a per annum basis)
N = Number of times interest is applied
T = Tenure (usually in years)

Sample Calculation
Suppose you invested ₹1,00,000 in an FD for 5 years, at an interest rate of 6.57% per annum.

Here:
P = ₹1,00,000
I = 6.57%
T = 5 years

Calculating with simple interest, we have:

₹1,00,000 + ((₹1,00,000 x 6.57% x 5) / 100) = ₹1,32,850

The maturity amount with simple interest is ₹1,32,850.

Let's say the interest is compounded quarterly, then:

P = ₹1,00,000
I = 6.57%
T = 5 years
N = 4

Calculating with compounded interest, we have:

P x ((1 + I/N) ^ NT)

₹1,00,000 x ((1 + 6.57/4) ^4*5) = ₹1,38,518.18.

The maturity amount with simple interest is ₹1,38,518.

This is why choosing compound interest-based FDs is better. With Kotak811, you can easily choose from monthly, quarterly, and annual compounding of interest for fixed deposits.

Tips to maximise your returns from a fixed deposit

• Consider different FD schemes. These include the ones for senior citizens, minors, and purpose-based FDs to take advantage of higher interest rates. Remember to set the applicant's age accordingly, when calculating the returns on your fixed deposit.
• Optimising the tenure helps you meet your short- and long-term financial targets. The goal is to maximise the interest received on your investment.
• Do read the terms and conditions to understand the finer details of your chosen amount and tenure.
• Reinvest your returns to earn more interest and grow your money.

You can set automatic re-investment easily from the Kotak811 Mobile Banking App. The fixed deposit calculator also tells you how much you will earn with reinvestment.

Steps to use a fixed deposit return calculator online

An online FD calculator is available 24/7 to know how much your fixed deposit will earn. It is freely available for you to use any number of times. All you need is a computer or mobile phone and an internet connection.

Steps:

• On the Kotak811 website, go to the FD page.
• Locate the Kotak811 Fixed Deposit Calculator.
• Select the FD type (senior citizen or adult).
• Enter the amount you wish to invest.
• Choose the investment period. The interest rate will be automatically updated.
• The calculator instantly displays the maturity amount and interest you will earn on your investment.
• Use the compare option to compare the returns for various tenures.

You can instantly apply for a fixed deposit online with the Kotak811 Mobile Banking App.

Choose Kotak811 Fixed Deposits for a smooth experience

As FD blocks your money for the maturity period, estimating the returns with an FD calculator is a good idea. Remember that with floating rate FDs, the actual amount at maturity cannot be accurately predicted as the interest rate changes with the repo rates set by the RBI.

The Kotak811 FD calculator is accessible online anytime you need it. The transparent FD interest and deposit returns calculator keeps your expectations realistic. Once you have chosen the FD, you can easily start one with the money you have in your Kotak811 Savings Account. The nominee details are copied automatically. Also, there is no need to upload your documents for KYC separately with each FD.