- 5 K
- 1 Cr
Investments To Returns Ratio:
Fixed deposits are one of the most popular saving instruments as it provides high security of funds and higher interest rates. As this method is not affected by market fluctuations, the principal amount is guaranteed to increase over time. You may also avail several tax benefits, provided the fixed deposit scheme is longer than five years.
Axis Bank FD Calculator is an online tool specially designed to simplify interest estimations and the maturity amount of your fixed deposit investment. You must enter the principal amount, interest rate, tenure, compounding frequency, and the payout period to know how much you will get in return at the time of maturity. One may open a fixed deposit account at any Axis Bank branch across the country.
How to Use the Axis Bank FD Calculator?
You must keep all the information handy to get an accurate estimation of the maturity return. You simply have to enter the data in the text fields so that the calculator can provide accurate results using your investment amount method.
The Axis Bank FD calculator processes the information, and you get an estimated maturity amount on your screen. This advanced calculator helps you plan your future deposits and assists you in anticipating several options to fulfil your financial goals.
You can try several combinations of inputs to depict how quickly you can achieve your desired economic goal.
How is Axis Bank FD Rate Calculated?
There are two methods to compute Axis Bank Fixed Deposit interest rates: One is using Simple Interest, and the other is Compound Interest. The calculation of the interest amount depends upon factors such as deposited amount, rate of interest, compounding frequency, and the interest earned, which you will avail as a payout.
Simple Interest on Axis Bank FD
Simple interest is the interest earned on the investment amount for a stated period at a pre-decided interest rate. If the fixed deposit tenure is lower than six months, the interest rate is computed using the simple interest method in the Axis Bank FD account.
SI = (P * R * T)/ 100
- P = Principal Amount
- R = Rate of Interest
- T = Tenure of the FD
You can see the example below.
Suppose you invest Rs 5,00,000 in an FD on 1st January 2022 for a period of 120 days at a 10% interest rate.
Here, P = Rs 5,00,000
R = 10% per annum
T = Tenure of 120 days
Date of Maturity = 30th April 2022
Simple Interest = (P * R * T)/ 100
SI = (Rs 5,00,000 * 10 * 120 days) / 100 * 365 days
SI = Rs 16,438
Amount on Maturity = Amount Invested + Interest Earned = Rs 5,00,000 + Rs 16,438
The maturity amount on FD is Rs 5,16,438.
Compound Interest in FD
In the compound interest method, the interest you earn is added to the principle, and then you earn interest on the compound interest. The rate of interest increases to the number of years for which the interest is compounded and then multiplied by the invested principal amount.
The Axis FD account offers a compound interest rate only if the maturity period is more than six months. It offers flexibility while choosing the monthly, quarterly, half-yearly, or annual compounding frequency. The formula of FD maturity amount compounded annually is as follows:
A = P (1+r/n) ^ (n * t)
- A = Maturity Amount
- P = Principal amount
- r = Rate of Interest
- N = number of compounding in a year
- t = number of years
Here is an example for you to understand how compound interest is calculated:
Suppose an individual invests Rs 90,000 for four years at an interest rate of 12% p.a compounded quarterly.
Principal amount = Rs 90,000
Interest Rate = 12% p.a half-yearly
No. of compounding annually = 4 (1 quarter = 3 months)
Investment Years is 4 years
Total compounding = 4 quarter * 4 years = 16 compounding
A = 90,000 (1+0.12/4) ^ (4*4)
A = Rs 1,44,423
Interest amount = Rs 1,44,423 – Rs 90,000 = Rs 54,423
Axis Bank FD Calculator Formula & Example
The return generated on the total deposited amount can be easily calculated using the Urban Money calculator. This will help in having accurate returns offered by the FD in the Axis bank calculator. These calculators use the following formula to determine the final amount.
A = P (1+r/n)^n*t
- A = Final Amount
- P = Principal Amount (deposited initially)
- r = rate of interest
- n = Frequency of compounding interest (for yearly compounding n = 1 whereas for monthly compounding n = 12)
- t = FD tenure
Here's an example that will help you understand how Urban Money FD calculator can accurately estimate your maturity returns.
Example 1: You have deposited Rs. 60,000 at an interest rate of 7% for five years, then what will be your maturity amount?
You must enter the values in the text fields to get the exact result.
- P = 60,000
- t = 5
- n = 12
- R = 7%
- A = 60000 (1+7%/2)^2x5
- A = 85,867.5
Therefore you will get Rs. 85,867 approx.
Advantages of Using Axis FD Calculator
By using the Axis Bank FD calculator, you can avail the following benefits:
- The Axis Bank FD calculator is easy to use
- Easy accessibility anytime, anywhere
- It displays both the FD calculator monthly payouts and maturity amount
- In case of tax deductions on the final amount earned, real returns are displayed after TDS
- Further, with Axis Bank fixed deposit calculator you will get accurate results
Factors Affecting Axis Bank FD Interest Rate
There are multiple factors that affect the Axis Bank FD interest rate. Some of these factors are mentioned below:
- Deposit Amount and Tenure: The interest rate of your FD account is highly dependent on its tenure and the deposited amount. That is because a larger amount with a longer tenure can give you higher returns at maturity.
- Change in Repo Rates: Deposit rates are linked to the inflation rate. In this case, banks should give positive returns to depositors. Owing to this, investors should monitor the rate of inflation, which affects the lending rates.
- Prevalent Liquidity Situation: If there is adequate liquidity, banks do not have to focus on retail fixed deposits during tight liquidity.
- Demand and supply conditions: If there is less demand for credit, banks often decrease their fixed deposit rates. On the other hand, if there is high demand for credit, banks increase their fixed deposit rates.
- Falling Call Rates: The falling call rates signify the amount of liquidity available in the market which banks borrow from the market for their short-term needs. But, if the call market is lending at a lower rate, it will affect interest rates on retail deposits.
- Cut Down Rates: Banks cut down the interest rates when their fund's costs are low. But if the fixed deposit rate is high, there is a revision in the base rate, which is less likely unless the high-cost deposit rates are cut-down.
Comparison of Axis Bank FD Interest Rate With Other Banks
The table given below offers a comparison between the fixed deposit interest rates offered by Axis Bank and other such banking institutions:
Axis Bank FD Rates
For General Citizens - 2.50% to 5.75% p.a
For Senior Citizens - 2.50% - 6.50% p.a
|Other Banks who Offer FD services||For General Citizens (p.a.)||For Senior Citizens (p.a)|
|Indian Overseas Bank||3.40% to 5.45%||3.00% to 5.45%|
|Yes Bank||3.25% to 6.25%||3.75% to 7.00%|
|United Bank of India (now Punjab National Bank)||3.00% to 5.25%||3.50% to 5.75%|
|Bandhan Bank||3.00% to 6.25%||3.75% to 7.00%|
|Andhra Bank (now Union Bank)||3.00% to 5.50%||Contact the bank for details|
|Syndicate Bank (now Canara Bank)||2.90% to 5.75%||2.90% to 6.25%|
|Allahabad Bank (now Indian Bank)||2.80% to 5.35%||3.30% to 6.10%|
|Indian Bank||2.80% to 5.35%||3.30% to 6.10%|
|Central Bank of India||2.75% to 5.50%||Contact the bank for details|
|IndusInd Bank||2.75% to 6.50%||3.25% to 7.00%|
|UCO Bank||2.55% to 5.30%||2.80% to 6.10%|
|DBS Bank||2.50% to 5.75%||Contact the bank for details|
|SBM Bank||2.50% to 7.00%||3.00% to 7.50%|
|Deutsche Bank||2.30% to 7.00%||2.30% to 7.00%|
|HSBC Bank||2.25% to 5.50%||2.75% to 6.00%|
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Frequently Asked Questions (FAQs)
What is the monthly interest for a 1 lakh fixed deposit in Axis Bank?
At an interest rate of 3% p.a, the monthly interest for a 1 lakh fixed deposit will range between Rs. 1,00,247 to Rs. 1,00,370.
What is the FD rate of Axis Bank?
The FD rate of Axis Bank has been revised as off 13th June 2022. At present, it varies between 2.50% to 5.75%.
How much interest will I get for a 10 lakhs fixed deposit with Axis Bank?
You will receive the interest amount between Rs. 2083 to Rs. 4792 for a fixed deposit of Rs. 10 lakh with Axis Bank.
What are Axis Bank FD interest rates in 2022?
The Axis bank FD interest rates were revised for a fixed deposit less than Rs. 2 crores. For regular citizens, the rate varies between 2.50% to 5.75%, and for senior citizens, the rate varies between 2.50% – 6.50%.
Can I close my FD account prematurely?
You can close your FD account prematurely in Axis bank with a penalty of 1.0%.