Compound Interest Formula:
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The compound interest formula calculates the amount of interest earned on a fixed deposit where the interest is compounded periodically. Axis Bank uses this method to calculate returns on their fixed deposit products.
The calculator uses the compound interest formula:
Where:
Explanation: The formula accounts for interest being earned on both the principal and accumulated interest.
Details: Accurate FD calculations help investors plan their finances, compare investment options, and understand potential returns before committing funds.
Tips: Enter principal in INR, annual interest rate in percentage, and tenure in months or years. All values must be positive numbers.
Q1: How often does Axis Bank compound interest on FDs?
A: Axis Bank typically compounds interest quarterly, but this calculator uses monthly compounding for more precise results.
Q2: Are there penalties for early withdrawal?
A: Yes, Axis Bank may charge a penalty (typically 0.5-1%) for premature withdrawal of fixed deposits.
Q3: Is the interest earned taxable?
A: Yes, interest earned on FDs is taxable as per your income tax slab. TDS may be deducted if interest exceeds ₹40,000 (₹50,000 for senior citizens).
Q4: What is the minimum deposit amount for Axis Bank FDs?
A: The minimum amount varies but is typically ₹5,000 for regular FDs and ₹1,000 for special schemes.
Q5: Can I get monthly interest payouts?
A: Yes, Axis Bank offers both cumulative (interest compounded) and non-cumulative (monthly/quarterly payout) options.