Kotak Fd Monthly Payout Calculator

Monthly Payout Formula:

\[ Monthly\ Payout = Principal \times \left(\frac{Rate}{12 \times 100}\right) \times \left(1 + \frac{Rate}{12 \times 100}\right)^{(n-1)} \]

Monthly Payout:

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1. What is Kotak FD Monthly Payout?

The Kotak FD Monthly Payout is a fixed deposit scheme where investors receive monthly interest payments while keeping the principal amount intact. This provides regular income while maintaining the investment principal.

2. How Does the Calculator Work?

The calculator uses the monthly payout formula:

\[ Monthly\ Payout = Principal \times \left(\frac{Rate}{12 \times 100}\right) \times \left(1 + \frac{Rate}{12 \times 100}\right)^{(n-1)} \]

Where:

\( Principal \) — Initial investment amount in rupees
\( Rate \) — Annual interest rate in percentage
\( n \) — Tenure in months
\( \frac{Rate}{12 \times 100} \) — Monthly interest rate in decimal

Explanation: The formula calculates the monthly interest payout considering compounding effect, where each month's payout is based on the previous month's accumulated interest.

3. Importance of Monthly Payout Calculation

Details: Accurate monthly payout calculation helps investors plan their regular income, budget effectively, and compare different FD schemes to maximize returns while ensuring liquidity through regular interest payments.

4. Using the Calculator

Tips: Enter principal amount in rupees, annual interest rate in percentage, and tenure in months. All values must be positive numbers with principal > 0, rate > 0, and months ≥ 1.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between monthly payout and cumulative FD?
A: Monthly payout FD provides regular monthly interest income, while cumulative FD compounds interest and pays the total amount at maturity.

Q2: Is the monthly payout amount fixed or variable?
A: The monthly payout amount remains fixed throughout the FD tenure as it's calculated based on the initial principal and agreed interest rate.

Q3: Can I withdraw the principal amount before maturity?
A: Premature withdrawal is usually allowed but may attract penalty charges and revised interest rates as per Kotak Bank's terms and conditions.

Q4: Are the monthly payouts taxable?
A: Yes, monthly interest payouts are taxable as per your income tax slab in the financial year they are received.

Q5: What is the minimum investment for Kotak monthly payout FD?
A: The minimum investment amount varies, typically starting from ₹5,000 to ₹10,000, subject to Kotak Bank's current policies.