Axis FD Calculator
The Axis Fixed Deposit calculator helps you calculate the total amount of money you will be receiving upon maturity. The calculator can be used to determine your fixed deposit’s maturity amount based on the current interest rate for a specific tenure.
Fixed deposits are saving instruments that are offered by banks and non-banking financial companies (NBFCs) where you deposit a lump sum of money to earn a higher rate of interest as compared to your savings account. The deposit can be made for a specific period ranging from 7 days to 10 years.
Depending on the nature of interest payout, fixed deposits are classified into two types - non-cumulative and cumulative FDs. Non-cumulative FDs regularly pay interest to the investors, either monthly, quarterly, half-yearly, or annually. Hence, the returns on non-cumulative FDs are not compounded and have a slightly lower effective interest rate.
In a cumulative FD, the interest earned on an FD is added back to the principal and reinvested. This means that you will not receive regular payouts.
How Does The Axis Fixed Deposit Calculator Work?
The formula used to calculate the maturity amount for a non-cumulative fixed deposit is as follows:
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
t is the tenure in years
The calculator uses the below formula to calculate the total maturity amount for cumulative FDs.
Where,
M is the Maturity amount
P is the Principal amount that you deposit
r is the rate of interest per annum
n is the number of times the amount is compounded
t is the tenure in years
Example:
Mr. Parth is looking to put ₹3.1 lakhs in a fixed deposit scheme, offering an interest of 6.5% per annum. The tenure of the FD is 2 years. He wants to receive the interest amount every six months. By putting the values in the formula, we get:
M = P + (P x t x r / 100)
M = 3,10,000 + (3,10,000 x 2 x 6.5/100)
M = 3,10,000 + (3,10,000 x 2 x 0.065)
M = 3,10,000 + 40,300
M = ₹3,50,300
Interest = 3,50,300 - 3,10,000
Interest = ₹40,300
Interest payable every six months = 40,300 / 4 = ₹10,075
So, if Mr. Parth puts ₹3.1 lakhs in an FD, earning 6.5% interest per annum for 2 years, he will receive an interest income of ₹10,075 every six months and the principal amount of ₹3.1 lakhs at the end of the tenure.
Let’s say Mr. Parth invests the same amount for the same interest rate and tenure in a cumulative fixed deposit. His maturity amount will be:
M = P (1 + r/n) ^ (n x t)
M = 3,10,000 (1 + 0.065)^(1 x 2)
M = 3,10,000 x (1.065)^2
M = 3,10,000 x 1.134225
M = ₹3,51,609.75 (approximately).
So, if Mr. Parth puts ₹3.1 lakhs in an FD for an interest rate of 6.5% interest rate per annum for 2 years, he will earn a maturity amount of around ₹3.51 lakhs at the end of the tenure.
How To Use The Axis Fixed Deposit Calculator?
The fixed deposit calculator is made to be simple to use and accurate when determining the maturity amount of your FD. All you need to do is enter the following information: the amount of the deposit, interest rate, and deposit duration.
- The amount of the deposit
- Interest rate
- Deposit duration
- Choose the payout tenure i.e. annual payout or cumulative payout
Once the data is entered, the maturity amount will be shown on the same page instantly.
Benefits Of Using The Axis Fixed Deposit Calculator
Using a fixed deposit calculator comes with several advantages such as below:
- The fixed deposit calculator saves you a lot of time by performing complicated calculations in a few seconds.
- The FD calculator gives accurate results, helping you choose the best deposit tenure.
- The calculator helps you compare interest rates from several institutions so that you can evaluate which bank is best for your deposit.