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Maturity Formula:
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Kotak Active Money is a financial product that offers fixed deposit-like returns with quarterly compounding interest. It provides investors with a reliable way to grow their savings while maintaining liquidity and security.
The calculator uses the quarterly compounding formula:
Where:
Explanation: The formula calculates the maturity amount when interest is compounded quarterly, meaning interest is calculated and added to the principal four times per year.
Details: Quarterly compounding allows your investment to grow faster than annual compounding because interest is calculated more frequently and added to the principal, creating a snowball effect on your returns.
Tips: Enter the principal amount in rupees, annual interest rate as a percentage, and time period in years. All values must be positive numbers for accurate calculation.
Q1: What is the minimum investment amount for Kotak Active Money?
A: The minimum investment amount may vary, but typically starts from ₹5,000 to ₹10,000 depending on the specific plan.
Q2: How does quarterly compounding differ from annual compounding?
A: Quarterly compounding calculates interest four times per year, leading to higher returns compared to annual compounding due to more frequent interest calculations.
Q3: Is Kotak Active Money safe and secure?
A: Yes, being a product from Kotak Mahindra Bank, it offers the safety and reliability associated with one of India's leading private sector banks.
Q4: Can I withdraw my investment before maturity?
A: Premature withdrawal options are available but may be subject to penalties or reduced interest rates. Check the specific terms of your investment plan.
Q5: How is the interest taxed?
A: Interest earned is taxable as per your income tax slab. TDS may be deducted if the interest exceeds specified limits.