Axis FD Calculator

About Axis Bank FD Calculator

Axis Bank is India's third-largest private bank, offering various financial services to consumers, businesses, and small and medium-sized enterprises (SMEs). This bank aims to be an exceptional financial service provider by leveraging technology and unique expertise.

Before applying for a fixed deposit scheme, knowing about your investment returns is important. In such a situation, the Axis Bank FD calculator helps to give you answers regarding your returns on the investment.

Using a fixed deposit calculator helps you calculate the interest amount you will earn on a fixed sum and for a fixed period. You need to input a few details into the online calculator, after which you will get an error-free result in seconds. This calculator is also helpful in finding the maturity value of the FD.

How to Use Axis FD Calculator?

To use the Axis Bank fixed deposit calculator with Stable Money, follow the simple steps discussed below:

Step 1: Specify Principal Amount

Enter the money you want to invest in your preferred Axis Bank FD Scheme. The minimum FD amount you can deposit is ₹10,000.

Step 2: Mention Rate of Interest

Under the 'Rate of Interest' heading, you may set the appropriate FD interest rate or use the slider. You should utilise the fixed deposit interest rate that is in effect on the day of deposit for the particular scheme and tenure of the deposit.

Step 3: Enter Tenure of Investment

Under the 'Time Period' menu, you may adjust the term of your FD. Again, you may manually enter the number of years you wish to invest or move the slider to the desired tenure.

The calculator automatically calculates the interest and maturity value when you enter all the details.

How Does an FD Calculator Work?

An online FD calculator works in a simple and hassle-free way. You can also calculate your interest and maturity value manually. Even with manual calculation, manual calculation can be time-consuming and may give you wrong results if the calculation is completed correctly.

In this section, we will provide you with a guide on the formula you can use to calculate the fixed deposit returns of Axis Bank.

Formula to Calculate Axis Bank FD Returns

The income earned on your investment, and the maturity value are primarily determined by banks using two distinct methods. They are simple interest and compound interest methods.

Let us examine more closely how the formulas for these two approaches function. Examples of how to utilise the formulas will also be presented for your clear comprehension

1. Simple Interest Method

This method calculates the interest earned on a specific deposit amount for a fixed period at a predetermined interest rate. Axis Bank uses this method to calculate the maturity value and the interest if the tenure is less than 181 days. The formula of this process is:

SI = (P * R * T) / 100

Here,

• SI = Simple Interest

• P = Principal investment amount

• R = Interest rate applicable on the date of deposit

• T = Tenure of the deposit

Let's look at an example to understand the calculation process better.

Mr Raj wants to invest in a fixed deposit scheme of Axis Bank with an amount of ₹1,00,000 for a period of 120 days. The rate of interest on the day is 10% p.a.

Therefore, to calculate the simple interest -

• P = ₹100,000

• R = 10%

• T = 120 days

Simple Interest (SI) = (P * R * T) / (100 * 365)

= (100,000 * 10 * 120) / (100 * 365)

= ₹3,288

Hence, the maturity value will be calculated as below:

Maturity Value on FD = Principal amount + Interest amount

= ₹100,000 + ₹3,288

= ₹103,288

2. Compound Interest Method

It is the interest earned on the invested principal sum and accumulated interest of the previous period. The interest earned in each period is added to the principal amount in this technique, establishing a larger amount upon which subsequent interest calculations are based. It causes the investment to rise exponentially over time.

Compound interest is a fundamental concept in finance and investment because it demonstrates the power of time in growing your money. Any fixed deposit done in Axis Bank for a duration of more than 181 days uses the compound interest calculator method. Here is the formula to implement this method:

A = P (1+r/n) ^ (n * t)

Here,

• A = Maturity amount

• P = Principal investment amount

• n = Number of compounding in a year

• r = Rate of interest

• t = Tenure of deposit

Let us take an example to demonstrate better the use of this formula to calculate interest and maturity amounts.

Mr. Raj wants to invest ₹80,000 for a period of 5 years at an interest rate of 9.5% p.a. compounded quarterly.

In this case,

• P = ₹80,000

• n = 4 (once in every 3 months)

• r = 9.5%

• t = 5 years

Therefore,

A = P (1+r/n) ^ (n * t)

= 80000 (1 + 0.095 / 4) ^ (4 * 5)

= ₹1,27,929

Hence, the interest amount is:

Interest Amount = ₹1,27,929 - ₹80000

= ₹47,929.

Advantages of Using Axis Bank FD Calculator

There are several advantages of using an Axis Bank FD calculator. Some of them are:

• The use of an online fixed deposit calculator is highly convenient. It eliminates the requirement to manually calculate the interest and maturity value, which can be error-prone and time-consuming.

• Calculating the compound interest is a very complex method. It makes humans prone to errors when manually calculating it. An Axis Bank FD rates calculator minimises the risk of error and ensures the estimated amounts are accurate.

• Online fixed deposit calculators have simple interfaces and straightforward instructions, making them simple to use even for people with less technical knowledge.

• The calculator allows users to experiment with different deposit amounts and tenures. This adaptability allows them to visualise how different scenarios can affect their returns and make informed decisions appropriately.

• As long as you have an internet connection, you can use Axis Bank's deposit calculators anytime. This accessibility allows users to make calculations whenever they want.

• The calculator provides a breakdown of how the interest is calculated, giving users a clear understanding of how their money grows over time.

Overall, be sure to have an in-depth understanding of fixed deposit plans and how the bank determines your interest before using the Axis Bank FD calculator. Even though the calculator's results are almost accurate, it might change when you receive your Fixed Deposit Receipt after booking; it entirely depends on the interest rate applicable and the scheme's tenure on the day of deposit.