The future value of investment will be
Fixed Deposits (FD) are one of the safest investment options for a retail investor. These give returns higher than savings accounts. FDs are fixed-income investments, so you can ascertain the returns even before investing in one. This is possible by using an online FD calculator. The Axis Bank FD calculator is one such online tool that you can use to ascertain the returns on a fixed deposit with Axis Bank.
The online calculator is a simple and convenient way to calculate an FD's maturity amount and interest. This information helps in making informed decisions and also in planning finances. You can find the online Axis Bank FD calculator on Angel One and access it anytime for free.
A fixed deposit calculator works based on the compound interest formula. It uses variables like the principal amount, tenure, and interest rate offered by the bank to calculate the estimated interest and maturity proceeds. All you have to do is enter the variables in the calculator. The online tool estimates interest and maturity proceeds in no time.
The Axis Bank FD calculator formula considers three factors - principal, interest rate, and tenure.
Here’s the FD formula:
Maturity amount = p (1 + r/n) ^ nt
p = principal amount
r = rate of interest
n = frequency of compounding
t = duration (or tenure)
Using the online Axis Bank FD calculator is simple and quick. Follow these steps to use the online tool:
- Enter the principal amount that you are looking to invest in the FD.
- Next, input the tenure or investment horizon of the FD.
- Select the expected rate of interest on the fixed deposit.
Let’s understand the above steps with an example. Suppose you want to invest Rs. 1,00,000 in a fixed deposit for 5 years at 7% interest p.a. Here’s how to ascertain the interest and maturity proceeds using the online FD calculator:
- Enter Rs. 1,00,000 in the principal field of the tool
- Select the interest rate as 7% p.a.
- Select 3 years as the duration
The FD calculator will ascertain the interest and maturity amount in no time. In this case, the interest earned will be Rs. 41,478. The maturity amount will be Rs. 1,41,478.
- Eliminates calculation errors: An online FD calculator accurately estimates the interest on FD and its maturity proceeds. It negates the possibility of human errors.
- Saves time: The fixed deposit calculator gives instant results, saving the time taken in case of manual calculations.
- Allows comparison of options: You can use the FD calculator to view the interest and maturity for various combinations of the principal, interest rate, and tenure. Doing so lets you compare different FD options and choose the one that fits your needs.
- Financial planning: Since the calculator gives the estimated returns on an FD, you can make informed decisions when planning your finances.
- Free to use: The online FD calculator is a free tool and thus accessible to everyone on the internet. You can use the tools as often as you like without paying any charges.
- Regular Fixed Deposit: Invest in an FD in under 7 minutes with full KYC and no documentation.
- Digital Fixed Deposit: Open your Digital FD with any bank’s savings account by completing the KYC process.
- Tax-Saver Fixed Deposit: Save for your future while enjoying a tax exemption on your investment of up to Rs. 1.5 lakh under Section 80C. This FD has a lock-in period of 5 years.
- Fixed Deposit Plus: Enjoy a higher interest rate for a minimum investment of Rs. 2 crore. You can choose between simple and compound interest.
- Auto Fixed Deposit: Link savings account to FD. Decide a limit beyond which the balance is automatically transferred from your savings account to FD.
- Tenure: More often than not, the FD interest rate is directly correlated to tenure or duration. The longer you stay invested, the higher the interest rate gets. This translates into higher earnings on your FD.
- Principal amount: While the interest rate is not directly correlated to the principal, the larger the amount you invest, the higher your returns will be. At the rate of 10%, if you invest Rs. 10,000, your interest earnings would be Rs. 1,000. But for a principal of Rs. 50,000, the interest would be Rs. 5,000. Some banks also offer higher interest rates in case your principal surpasses a pre-determined limit.
- Interest rate: The higher the FD interest rate, the higher your earnings. So it is wise to scout for banks/financial institutions that offer high-interest rates to increase your earnings. Additionally, you should also make sure to verify the principal's safety by checking the financial institution's credit rating.