Fixed deposits are one of the most popular savings instruments as it provides high security of funds and relatively higher interest rates. Since these instruments are not subject to market fluctuations, the principal amount is guaranteed to increase over time. Several tax benefits are also applicable on this deposited amount, provided it is invested in a fixed deposit scheme of tenure longer than five years.
Comparing the interest rates provided by various financial institutions, you can choose one offering the highest returns. Axis Bank provides one of the highest interest rates available in the market. Axis Bank Fixed deposit account can be opened easily at any Axis Bank Branch available across India. A benefit such as the Axis bank FD calculator which is available online is also provided to aid the investors in the process.
Also Read, Axis Bank FD Interest Rates
Returns generated on the total investment amount can be easily calculated by an FD in the Axis bank calculator. Such calculators use the following formula to determine the final amount receivable by an investor:
A = P (1 + r/n) ^ n*t
A = Final amount
P= Principal amount invested
r= Rate of interest
t= Tenure of investment
n= Frequency of compounding interest. If interest is compounded monthly, the value of n would be 12, while yearly compounding inputs the value of n as 1.
Let us consider an example. Suppose Pubali invests Rs. 50,000 in a fixed deposit with Axis Bank for five years. Interest is compounded half-yearly at a rate of 7% per annum. Axis FD calculator determines the final amount receivable in the following method:
P= Rs. 50,000
A = 50,000(1+7%/2) ^2×5
=Rs. 70,530 (approx.)
As per Axis Bank fixed deposit calculator, Pubali will receive Rs.70, 530 on an investment of Rs. 50,000 on maturity.
There are several benefits of using Axis Bank FD calculator, such as:
The main advantage of investing in an FD scheme is that returns generated on deposited amounts are higher than other instruments provided by commercial banks. If you are looking for entirely risk-free investment schemes providing a high-interest income, you can opt for fixed deposits. Also, using the Axis Bank Fixed Deposit calculator, you can determine the total returns generated with accuracy.