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Axis Bank FD calculator is an online easy-to-use tool that helps you estimate the interest and maturity amount on your FD investment. You need to enter the investment amount, rate of interest, tenure, compounding frequency, and payout period. The calculator will process this information and provide the estimated maturity amount and wealth gained or interest amount.
This way you can estimate whether or not the FD investment options fulfill your investment goals. You can adjust the various input values on the calculator to get the most appropriate combination of inputs for your investment.
To use the Axis Bank FD calculator you must keep the input values handy. All you need to do is enter the input values and the calculator will provide the results. Along with the estimated amount the calculator also provides a graphical representation of the maturity and interest amount every year-end. You can also view the results in a tabular format wherein you can view the opening balance, interest earned and closing balance at the end of each year.
Moreover, you can use the Axis FD calculator in 2 ways. Firstly, you can know the estimated maturity amount using the investment amount method. Secondly, you can use the target amount approach. In this approach, you need to provide the target amount of maturity you want to earn with your investment. The calculator will provide how much you need to invest today to earn the target amount.
This is the traditional approach of using an FD calculator to estimate the returns. This approach is a better way to estimating when you have a lump sum amount in hand or you have already decided what amount you want to invest.
You need to follow the following steps to use the investment amount approach:
Once you enter these details the Axis fixed deposit calculator will provide the estimated maturity amount and interest to be earned.
The target amount approach is a back-calculation method. Here you provide the amount you want to earn as the maturity amount. The calculator will provide the principal amount you should invest today. This approach is helpful if you already have an expense coming in the future and you wish to invest today to cover the future expense. This way you will ensure that you have invested the appropriate amount and avoid any surprises
You need to follow the following steps:
The calculator will provide the principal investment amount you must invest today to achieve the target maturity amount on the maturity date.
You can calculate Axis fixed deposit interest using 2 methods i.e. simple interest and compound interest. The calculation of the interest amount depends on factors such as investment amount, interest rate, tenure, compounding frequency, and interest payout.
Simple interest is the interest earned on the investment amount for a given period of time at a predetermined interest rate. If the tenure of the fixed deposit is less than 6 months or 181 days then the interest in Axis Bank Fd is calculated using the simple interest method
Simple Interest Formula- (P * R * T)/ 100
P = Principal amount of investment
R = Rate of FD Interest (%)
T = Tenure of investment
Let us understand the calculation with the help of an example
Mr. Sanjay invests Rs 400,000 in a fixed deposit on 1st January 2021 for a maturity period of 120 days at an interest rate of 10% per annum.
P (the investment amount) = Rs 400,000
R (rate of interest) = 10% per annum
T (tenure) = 120 days
Maturity Date = 30th April 2021
Simple interest = (P * R * T)/ 100
= (Rs 400,000 * 10 * 120 days) / 100 * 365 days
= Rs 13,150
Maturity amount on FD = Principal Investment Amount + Interest Earned
= Rs 4,00,000 + Rs 13,150
= Rs 4,13,150
Compound interest is the interest earned on the principal amount invested and the interest earned. The interest rate is raised to the number of periods (years) for which the interest will be compounded and multiplied to the principal amount invested.
For a higher compounded interest amount the tenure is the most important and deciding factor. Higher the tenure and compounding frequency higher will be the interest amount and maturity amount. Moreover, a frequent/ periodic payout of interest amount leads to a lower interest amount. While an FD with a payout of interest on maturity will lead to a higher wealth gain.
The Axis Bank fixed deposit provides a compounded interest rate only if the tenure of the fixed deposit is more than 6 months or 181 days. It provides flexibility in choosing the compounding frequency as monthly, quarterly, half-yearly, and yearly. Moreover, an FD with compound interest is a better investment option than an FD carrying simple interest.
Compound Interest Formula
A = P (1+r/n) ^ (n * t)
A = Maturity Amount
P = Principal amount invested
r = Rate of Interest (in decimals)
n = number of compounding in a year
t = number of years
Mr. Anil invests Rs 70,000 for a period of 4 years at a rate of interest of 12% per annum compounded quarterly.
Principal amount = Rs 70,000
Interest Rate = 12% per annum compounded half-yearly
Number of compounding in a year = 4 (once every 3 months)
Number of years of investment is 4 years
Total compounding = 4 quarter * 4 years = 16 compounding
A = 70,000 (1+0.12/4) ^ (4*4)
A = Rs 1,12,329
Interest amount = Rs 1,12,329 – Rs 70,000 = Rs 42,329
Yes, Axis bank FD is safe. An investment in a fixed deposit with Axis bank is safe as the interest is predetermined and guaranteed. Moreover, the Deposit Insurance and Credit Guarantee Corporation insures a fixed deposit of up to Rs 5 lakhs. This means that in a case of default the DICGC will cover any losses borne by the investors. Further Axis Bank is well rated by the credit agencies in India like CRISIL and CIBIL
Yes, the interest on a fixed deposit with a tenure of fewer than 6 months is calculated at simple interest. To calculate the simple interest the number of days is considered. A fixed deposit with a tenure of more than 6 months is compounded quarterly. The interest earned during the last quarter is added to the principal amount to calculate the compound interest. In the case of a monthly interest payout FD the interest is calculated at a discounted rate over the standard rate. However, in the case of a quarterly payout FD the interest is calculated quarterly.
The highest Axis Bank FD interest rate is 5.50% for a regular investor for the tenure of 5-10 years. Also, for the same tenure, the senior citizen FD interest rate is 6.0%.Returns from Axis Bank fixed deposits can be calculated using Axis Bank FD calculators. One can use Scripbox’s Axis Bank fixed deposit calculator to calculate an FD investment’s maturity amount. Also, it is available online and is free to use.
Investors can avail loan against their Axis Bank FD. Hence, Axis Bank provides an opportunity for the investors to meet their liquidity requirements without breaking their Axis Bank FD. An investor can get up to 85% of the deposit amount as a loan against the Axis Bank FD. The minimum loan amount is INR 25,000, and the interest will be 2% above the prevailing Axis Bank FD interest rate.
Axis Bank gives loans such as education loans, business loans and loans against property against their FDs. Using an EMI calculator, one can estimate their loan EMI amount. Scripbox’s loan EMI calculator works as a car loan EMI calculator, home loan EMI calculator, and personal loan EMI calculator. Moreover, the investor can use Scripbox’s EMI calculator in multiple scenarios. They can do so by changing the car loan, personal loan and home loan interest rate.
Axis bank allows its investors to withdraw the deposit amount prematurely. However, Axis Bank charges a penalty for premature withdrawal. The penalty of 1% is charged on the interest. However, there is no penalty on premature withdrawal for NRE term deposits.
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