Urban Money

An Axis Bank RD Calculator is an online instrument that helps individuals determine the interest amount earned in a recurring deposit account at a certain interest rate and time frame. The amount you receive at the time of RD maturity is the total of all the investments and interest amount earned during the investing period. However, for RD, the compounding of interest is done every quarter.

You can choose varying tenures, schemes, and the lowest amount to invest in the Axis Bank RD account. You just have to enter the required numbers in the calculator to get an estimated amount upon maturity.

The Axis RD calculator also helps in anticipating the interest and the return on investment upon tenure completion. The recurring deposit calculator of Axis Bank is a simple, easy-to-use tool. It works using the following values as inputs:

  • The monthly amount you will invest.
  • The interest rate at which you will deposit the amount. 
  • The time frame for which the monthly recurring investment will take place.

You will get the following results in the RD calculator:

  • The sum of all the monthly deposits under the RD scheme as the total investment.
  • The interest amount earned from the RD monthly investment over the years. This will be your wealth gained.
  • The sum of all the investments and the amount gained is the total amount you will receive. 

How to use an Axis Bank Recurring Deposit Calculator?

The Axis Bank RD calculator is a free tool that is easy to use. You have to write the values of the monthly deposited money, interest rate, and maturity value.

With this calculator, you can plan your economic goals for the future as a certain amount of funds are deposited on a timely basis. Moreover, the Axis Bank RD calculator has the formula to estimate the maturity value of your investment. You can see an example below:

Suppose you plan to deposit INR 25,000 monthly in an Axis Bank account for seven years. Further, Axis bank offers a 6.50% interest rate on an RD account.

The Axis Bank RD calculator will work as follows:

Monthly Invested Amount: Rs. 25,000

Axis Bank RD: 6.50%

Recurring Deposit Term Period: 7 Years.

When you enter the above values, the Axis bank RD calculator will display the following result:

Total Investment: Rs. 21,00,000

Interest: Rs. 5,61,175

Total Amount Created: Rs. 26,61,175

Here, the investment of Rs. 21,00,000 was made at an interest rate of 6.50% p.a, which would be Rs. 26,61,175 in 7 years. Therefore, the interest earned for the investor will be Rs. 5,61,175.

Advantages of Axis Bank RD Calculator

You can read some of the primary advantages of using the Axis bank RD calculator mentioned below:

  • User-Friendly: Axis bank RD calculator is a straightforward tool to use. You just have to enter the input values and get the estimation of possible returns.
  • Saves Time: The Axis RD calculator calculates the results quickly and helps individuals perform all the difficult calculations instead of manual ones because they are susceptible to miscalculations or inaccuracies.
  • Appropriate Results: The Axis bank recurring deposit calculator provides exact results, thereby leaving less room for errors.
  • Free Tool: The Axis bank RD calculator is a free tool to use. You can use it multiple times with different input values to compute your estimations from different recurring deposit investments.
  • Future Planning: You can easily plan your financial goals with the help of the Axis Bank ED calculator. Also, anticipating the returns helps you in planning the investments and financial goals in a good way.
  • Comparison: The RD calculator can help in comparing several values that can help you in shortlisting schemes and planning your economic goals accordingly. 

How does RD Calculator Compute the Interest and Maturity Amount?

Most of the banks' set their RD interest rates between the ranges of 5% to 7%. However, the interest rate for RDs is compounded quarterly, and the account holder will earn the amount in the form of simple interest during that quarter.

For instance, if you invest in an RD in the month of January 2022, the RD will earn simple interest until March 2022. And, at the end of March, the interest will again earn interest. In simple language, the interest will be compounded in March, at the end of the month. However, the quarters are January - March, April - June, July - September, and October - December.

Formula & Example of Recurring Deposit Calculator?

The formula used by the Axis Bank RD Calculator to estimate the maturity amount based on the interest rate, deposited value and tenure is mentioned below:

A=P*[(1+i)^(n-1)]/(1-(1+i)^(-1/3))

Where,

  • A is the amount you will receive upon maturity
  • P is the instalment paid by you every month 
  • n represents the quarters, where the individuals want to deposit an amount.
  • i = interest rate / 400. It is the rate of interest used by Axis Bank for recurring deposits under the guidelines of RBI.

You can see the example below to know how the calculator works

X wants to deposit Rs. 50,000 in a Recurring Deposit scheme for three years at an interest rate of 6.5%. X can use the calculator to compute the interest and amount earned at the time of maturity using this formula:

A=P*[(1+i)^(n-1)]/(1-(1+i)^(-1/3))

  • P = 50,000
  • i = 6.5%/400
  • n = 36 months or 3 years
  • A = 50000*[(1+6.5/400)^(36-1)](1-(1+6.5/400)^(-1/3))
  • A = 19,91,219

Therefore, after investing Rs. 18,00,000 for three years X will receive Rs. 19,91,219 as the maturity amount. 

Axis Bank Recurring Deposit Interest Rates 2022

You can check the Axis bank recurring deposit interest rates 2022 for general citizens from the below-given table.

Recurring Deposit Tenure Regular Interest Rates (p.a.) below Rs. 2 crore
6 months - less than 7 months 4.40 %
7 months - less than 8 months 4.40 %
8 months - less than 9 months 4.40 %
9 months - less than 10 months 4.40 %
10 months - less than 11 months 4.40 %
11 months - less than 11 months 25 days 4.40 %
11 months 25 days - less than 1 year 4.40 %
1 year - 1 year 5 days 5.10 %
1 year 5 days - 1 year 11 days 5.15 %
1 year 11 days - 1 year 25 days 5.30 %
1 year 25 days - 13 months 5.10 %
13 months - 14 months 5.15 %
14 months - 15 months 5.15 %
15 months - 16 months 5.20 %
16 months - 17 months 5.20 %
17 months - 18 months 5.20 %
18 Months - 2 years 5.25 %
2 years - 30 months 5.40 %
30 months - 3 years 5.40 %
3 years - 5 years 5.40 %
five years - 10 years 5.75 %

Why Consider Opening an RD Account in Axis Bank?

Opening a Recurring Deposit account in Axis bank can help you in several ways. This investment option is beneficial in the longer run as they are stable, and individuals can create a saving corpus over the tenure. Some benefits are 

  • With just a minimum deposit of Rs. 500, you can open an RD account.
  • You can deposit starting from a minimum of 6 months to a maximum of 120 months. You also have the freedom to withdraw these funds as per your requirements during your tenure.
  • Get the best interest rate and earn an interest amount apart from the monthly deposit you made.
  • Enjoy the quarterly compounding interest.
  • Every month, routine deposit leads to higher ROI during a selective tenure.

Steps on How to Open a Recurring Deposit Account in Axis Bank?

There are two ways to open an RD account in Axis Bank. One is an offline method, and the other one is online.

Offline

Step 1: Visit the nearest Axis Bank branch in your area

Step 2: You can ask for an RD account form and fill it accurately with the required information

Step 3: Submit all the required KYC documents

Step 4: Deposit the initial amount

Step 5: You have successfully opened your recurring deposit account in Axis Bank 

Online

You have to make sure that your Axis Bank offers the facility of net banking via the bank’s official website or through mobile banking. If you can access the net banking facility, you must follow the steps:

Step 1: Log into your net banking account using your credentials.

Step 2: Once you log in to your net banking account, select the e-recurring deposit option from the menu.

Step 3: Fill out the online form with accurate information.

Frequently Asked Questions (FAQs)

What is the highest RD rate for Axis Bank?

The Axis bank RD interest rates vary from 4.40% p.a. to 6.50% p.a. For senior citizens, the interest rate is 0.50% extra over the regular interest rates.

What is the minimum amount required to open an RD account with Axis Bank?

You have to make a minimum monthly deposit of Rs 500 in a recurring deposit with Axis bank. You can have multiple RD accounts with no maximum limit.

Is there a Premature withdrawal facility for recurring deposits available with Axis Bank?

Yes, Axis Bank provides the facility of closing an RD account before its maturity tenure. However, you cannot withdraw the complete amount as it is capped at a maximum of 50% of the deposited amount.

Do senior citizens receive any benefits from Axis bank RD?

Yes, senior citizens of India receive several benefits from the Axis Bank RD account. The prominent benefit is the 0.75% preferential rate on the interest earned in a recurring deposit account. Anyone over 60 years of age can avail of this benefit. But, they have to make sure that the tenure of their RD account must be longer than 6 months/181 days. Further, this facility is not available for NRI deposits.

What if I delay paying my monthly instalment of the bank RD?

In case you get delayed in paying the monthly instalment, you have to pay the penalty of Rs. 1.50 for every Rs. 100 per month for the RD of 5 years or less. Moreover, on RD for more than 5 years, the penalty charges will be Rs. 2.00 for every Rs. 100 per month.

Is the interest earned on bank RD taxed, and how?

The interest you earn on the recurring deposit is taxable in the form of TDS (Tax Deducted At Source). Almost 10% of the interest amount is deducted. However, TDS will not be deducted if the interest you earned is Rs. 10,000 or less. But for the interest amount earned more than Rs. 10,000, 20% TDS will be deducted. To prevent a 20% deduction, you must provide the bank with your PAN Card and relevant information.