Axis Bank Fixed Deposit Interest Calculator

Axis Bank Fixed Deposit Formula:

\[ A = P \times \left(1 + \frac{R}{100 \times 4}\right)^{4 \times T} \]

Maturity Amount (A):

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1. What is Axis Bank Fixed Deposit?

Axis Bank Fixed Deposit is a financial instrument where you deposit a lump sum amount for a fixed period at a predetermined interest rate. It offers quarterly compounding of interest, providing a secure investment option with guaranteed returns.

2. How Does the Calculator Work?

The calculator uses the quarterly compounding formula:

\[ A = P \times \left(1 + \frac{R}{100 \times 4}\right)^{4 \times T} \]

Where:

\( A \) — Maturity Amount (currency units)
\( P \) — Principal Amount (currency units)
\( R \) — Annual Interest Rate (%)
\( T \) — Time Period (years)

Explanation: The formula calculates the maturity amount with quarterly compounding, where interest is calculated and added to the principal every three months.

3. Importance of Fixed Deposit Calculation

Details: Accurate calculation of fixed deposit returns helps in financial planning, comparing investment options, and making informed decisions about savings and investments.

4. Using the Calculator

Tips: Enter principal amount in currency units, annual interest rate in percentage, and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is quarterly compounding?
A: Quarterly compounding means interest is calculated and added to the principal every three months, leading to higher returns compared to annual compounding.

Q2: What is the minimum deposit amount for Axis Bank FD?
A: The minimum deposit amount varies by account type and tenure. Please check with Axis Bank for current requirements.

Q3: Are there penalties for premature withdrawal?
A: Yes, Axis Bank may charge a penalty for premature withdrawal of fixed deposits. The penalty amount varies based on the terms and conditions.

Q4: Is the interest earned taxable?
A: Yes, interest earned on fixed deposits is taxable as per your income tax slab. TDS may be deducted if interest exceeds certain limits.

Q5: Can I get monthly interest payouts?
A: Yes, Axis Bank offers monthly interest payout options for fixed deposits, though the effective yield may be slightly lower than quarterly compounding.