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What Is the Axis Bank RD Calculator?
Recurring Deposits (RDs) are a popular savings scheme offered by financial institutions that allow individuals to save a fixed amount of money at regular intervals while earning interest on their savings. The deposited amount is then locked in for a specific period, known as the tenure, which can vary from a few months to several years.
RDs are a suitable option for individuals who wish to accumulate savings for a specific purpose, such as buying a car, financing their child's education, or building an emergency fund.
The Axis Bank RD calculator is a useful tool that helps you make informed decisions about your RD investments by providing accurate calculations based on the principal, tenure, and interest rate. With the online Axis Bank RD calculator, you can plan your finances around the money you are likely to earn as maturity amount and interest and assess the suitability of your RD investment to your portfolio.
How Does a Axis Bank RD Calculator Work?
An RD calculator uses a simple formula to determine the maturity amount and interest earned on an RD investment.
The Angel One Axis Bank RD calculator is a convenient and efficient way to plan your RD investments. It helps you make well-informed decisions by accurately calculating maturity amounts and interest on investment. By considering the various factors that influence RD earnings, such as interest rate, tenure and investment, you can customise your investment strategy to maximise returns.
What is the Axis Bank RD Calculator Formula??
The RD formula considers four factors - principal, interest rate, compounding frequency, and tenure. Here’s the Axis Bank RD calculator formula –
M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )
M is the maturity value,
R is the monthly deposit amount,
i is the rate of interest/400
n is the number of quarters
How To Use the Axis Bank RD Calculator Online?
Using the Angel One Axis Bank RD calculator online is hassle-free. Follow these simple steps to use the online tool:
- Enter the monthly amount you want to invest in the RD.
- Slide on the expected rate of interest on the RD
- Choose the tenure of the RD.
The calculator will automatically show the estimated interest and maturity amount. You can choose different variables' values to see how they impact your RD investment. Let’s understand the above steps with an example.
Suppose you want to invest Rs. 2,000 monthly in an RD for 2 years at 7.20% p.a. Then, in this case, the maturity value will be Rs. 1,80,446. The estimated return will be Rs. 12,446.
Benefits of Using a Axis Bank RD Calculator
- Eliminates calculation errors: The Axis Bank RD calculator eliminates the chances of errors or miscalculations, ensuring accurate and reliable results.
- Saves time: The Axis Bank recurring deposit calculator provides instant results, saving you the effort of manual calculations.
- Allows comparison of options: In Axis Bank RD calculator you can vary the monthly instalment, tenure, and interest rate to see how they affect the maturity amount and interest earned. This flexibility empowers you to find the optimal combination that aligns with your financial goals.
- Free to use: The online Axis Bank RD calculator is a freely accessible tool available online. You can use it as often as you like without incurring any charges.
Which Factors Influence RD Earnings?
- Monthly Instalment: The amount you invest in your RD each month directly impacts the maturity amount. Higher instalments lead to greater savings.
- Tenure: The duration for which you hold the RD impacts the interest earned. Longer tenures allow for compounding, resulting in higher returns.
- Interest Rate: The interest rate offered on your RD investment determines the earnings. Higher interest rates yield greater returns.
- Compounding Frequency: The frequency at which interest is compounded influences the final maturity amount. Compounding more frequently leads to higher growth.