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Interest Calculation Formula:
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The interest calculation for Axis Bank Fixed Deposits determines the earnings on your principal investment. It calculates the difference between the maturity amount and the principal amount invested.
The calculator uses the simple formula:
Where:
Explanation: This formula calculates the total interest earned by subtracting the original principal from the final maturity amount received from the fixed deposit.
Details: Accurate interest calculation helps investors understand their returns, compare different investment options, and make informed financial decisions about their fixed deposit investments.
Tips: Enter the maturity amount and principal amount in currency units. Both values must be positive numbers, and the maturity amount should be greater than or equal to the principal amount.
Q1: What is a Fixed Deposit (FD)?
A: A Fixed Deposit is a financial instrument where you deposit a lump sum amount for a fixed period at a predetermined interest rate, providing guaranteed returns.
Q2: How does Axis Bank calculate FD interest?
A: Axis Bank uses compound interest calculation with rates varying based on deposit tenure, amount, and customer type (regular/senior citizen).
Q3: What factors affect FD interest rates?
A: Interest rates depend on deposit tenure, amount, age (senior citizens get higher rates), and current market conditions set by the bank.
Q4: Are there penalties for premature withdrawal?
A: Yes, Axis Bank may charge a penalty for premature withdrawal, typically 0.5-1% lower than the applicable rate for the period the amount remained with the bank.
Q5: How often is interest paid out?
A: Interest can be paid monthly, quarterly, half-yearly, annually, or at maturity, depending on the deposit option chosen.