The Axis Bank Recurring Deposit (RD) Calculator is an online interface that helps you estimate the maturity amount you will receive from your RD investments with Axis Bank. By inputting basic details like the monthly deposit amount, tenure, and the applicable interest rate, the calculator quickly computes the total maturity amount, enabling you to plan your savings more effectively.
Features of Axis Bank RD
The features below make the Axis Bank RD a versatile and attractive savings option. It helps individuals systematically grow their savings with the added security of guaranteed returns.
Flexible Deposit Amounts: You can start an Axis Bank RD with a minimum monthly deposit of ₹500, making it accessible to individuals with varying financial capabilities.
Tenure Options: Axis Bank RDs offer flexible periods ranging from 6 months to 10 years, allowing you to choose a duration that fits your financial goals.
Attractive Interest Rates: Axis Bank provides competitive interest rates on RDs, up to 7.00% per annum. Senior citizens enjoy an additional interest rate benefit, usually 0.50% higher than the regular rates.
Automatic Renewals: Axis Bank RDs can be automatically renewed upon maturity, making it convenient to continue growing your savings without reinitiating the process manually.
Nomination Facility: You can name a nominee for your RD account, ensuring your savings are securely passed on to your chosen beneficiary in case of unforeseen circumstances.
Penalty for Premature Withdrawals: A nominal penalty may be applied while Axis Bank allows premature withdrawals from RDs. It's essential to check the penalty details before opting for early withdrawal.
Loan Against RD: Axis Bank offers the facility to avail loans against your RD, up to 90% of the deposit amount, providing a financial cushion without breaking your savings.
How to Use Axis RD Calculator Online?
Using an Axis Bank RD Calculator is easy. Here are the steps to follow:
- Enter the Monthly Deposit Amount: Input the amount you plan to deposit each month.
- Select the Tenure: Choose the number of months or years you wish to invest.
- Input the Interest Rate: Enter the annual interest rate provided by the bank.
- Click Calculate: The calculator will provide the maturity amount based on the details entered.
Formula to Calculate Axis Bank RD Returns
To calculate the maturity amount of the Axis Bank RD, you can use the following formula:
M = R x {(1 + n) ^ n – 1} / {1- (1 + i) ^ (-1/3)}
Where:
R = Amount invested per month.
n = Number of quarters in the total tenure.
i = Rate of interest divided by 400 (for four quarters in a year).
M is the maturity amount.
Calculation of RD Returns and Majority Amount
Ms Satakshi, 23 years old, deposits ₹5,000 monthly into her Axis Bank RD account for 24 months, earning a 7% interest rate compounded quarterly.
Scenario:
Monthly deposit (R): ₹5,000
Tenure: 2 years
Annual interest rate: 7% (which means quarterly interest rate i = 7/400 = 0.0175)
Steps:
1. Calculate the number of quarters: n = 2 × 4 = 8
2. Apply the values to the formula:
M = 5,000 × {[(1 + 0.0175) ^ (8) - 1] / [(1 - (1 + 0.0175) ^ (- 1/3)]}
M = 5,000 × {(1.0175) ^ (8) - 1} / 1 - (1.0175) ^ (- 1/3)
M = 5,000 × (1.14 - 1) / 0.01
M = 5,000 × 0.1488 / 0.0058
M = 5,000 × 25.65
M = 1,28,250
Maturity Amount (M): ₹1,28,250
Total Investment: ₹5,000 × 24 months = ₹1,20,000
Total Returns: Maturity Amount - Total Investment = ₹1,28,250 - ₹1,20,000 = ₹8,250
Benefits of Axis Bank RD Calculator
Below are the advantages of using this Axis Bank RD calculator:
- Accuracy: Provides precise calculations based on current interest rates and deposit amounts.
- Saves Time: Quickly computes your returns without manual calculations.
- Easy to Use: Simple interface and user-friendly, suitable for everyone.
- Instant Results: Get immediate feedback on your potential returns.
How Does this Calculator Help You?
This Axis Bank RD Calculator helps you make informed financial decisions by:
- Forecasting Returns: It lets you estimate the maturity amount, helping you plan your finances better.
- Comparing Options: You can compare different deposit amounts and tenures to find the best option for your savings goals.
- Budget Planning: This helps you determine how much to deposit monthly to reach your financial targets.
Incorporating an RD calculator into your financial planning can streamline your savings process and optimise your returns.
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