How to Use Axis FD Calculator for Smart Investments?

So, whether you are saving up for a new bike, your dream overseas vacation, or just want to grow your money in the background, understanding how your fixed deposits can grow is undoubtedly a smart decision. In this article, we will go over what an Axis FD calculator is and how you can make smart decisions with this handy online tool.  

What is the Axis FD Calculator? 

The Axis FD calculator is an easy-to-use online tool provided by Axis Bank. This calculator helps you calculate the maturity amount and total interest that you will earn on your fixed deposit investment. All you need to do is punch in a few details, and the online tool will do the rest for you, showing you exactly how much you will pocket when your fixed deposit matures. Think of it like having a finance assistant whom you can rely on when looking to get a fixed deposit investment.  

How do You Use the Axis FD Calculator? 

Here is a step-by-step guide on how to use the Axis FD calculator: 

1. Head over to the Axis FD calculator website. 
2. Choose the type of customer you are – normal or senior citizen. Senior customers enjoy a higher rate of interest on their fixed deposit. 
3. Pick the type of fixed deposit that you will be making – reinvestment, quarterly payout, monthly payout or short-term deposit. 
4. Enter the amount you wish to deposit. Whether it is Rs. 5000 or Rs. 2 lakhs, the calculator will process the returns accordingly. 
5. Choose your preferred fixed deposit tenure. This will affect your rate of interest, so choose wisely.  
6. The calculator will display your estimated maturity amount, maturity date, aggregate interest amount and total interest earned. 
7. You can click on “Open FD” to explore more fixed deposit options. 

And that’s it – no complicated stuff involved. Here’s a quick example: 

Let’s say you are planning to invest Rs. 50,000 for 3 years in an Axis Bank fixed deposit. Plugging this into the Axis FD calculator with a 6.90% rate of interest will show you a maturity value of Rs. 61,391 with a total interest amount of Rs. 11,391.  

This allows you to instantly see if your investment matches your plans, whether it’s funding your dream trip to Ladakh or upgrading to that shiny new smartphone. If not, you can look for other investment options that can help you achieve your goals in time.  

Things to Keep in Mind 

Here are some things you need to remember when using the Axis FD calculator: 

1. Interest rates change over time: 

Banks revise interest rates on fixed deposits based on RBI policies and other market conditions. So, it is recommended to double-check the latest rates on the fixed deposit you are planning to invest in. 

2. Type of FD matters: 

Senior citizens enjoy a much higher interest rate on fixed deposits than young customers. So, if you are above the age of 60, you should go for a senior citizen FD to maximise your earnings. 

3. Premature withdrawals: 

The calculator shows you the total amount that you will receive after your FD has matured. But if you decide to break your FD before that, your actual returns may differ.  

4. Tax implications: 

Interest that you earn from fixed deposits is taxable. This calculator provides you with the gross amount that you will receive, so factor in taxes while planning your total returns.