1. What is Axis Bank Saving Bond?

Axis Bank Saving Bonds are fixed-income investment products that offer semi-annual compounding interest. They provide a secure way to grow your savings with predictable returns over a specified period.

2. How Does the Calculator Work?

The calculator uses the Axis Bank Saving Bond formula:

Where:

• \( FV \) — Future Value (INR)
• \( P \) — Issue Price (INR)
• \( r \) — Annual Interest Rate (decimal)
• \( t \) — Time Since Issue (years)

Explanation: The formula calculates the future value of your investment with semi-annual compounding, where interest is added to the principal twice per year.

3. Importance of Future Value Calculation

Details: Calculating the future value helps investors understand the potential growth of their investment, plan financial goals, and compare different investment options effectively.

4. Using the Calculator

Tips: Enter the bond's issue price in INR, annual interest rate as a decimal (e.g., 0.075 for 7.5%), and time since issue in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is semi-annual compounding?
A: Semi-annual compounding means interest is calculated and added to the principal twice a year, which leads to faster growth compared to annual compounding.

Q2: Are Axis Bank Saving Bonds taxable?
A: Yes, the interest earned on these bonds is subject to income tax as per your applicable tax slab in India.

Q3: What is the minimum investment amount?
A: The minimum investment varies by bond issue. Please check the specific bond prospectus for details.

Q4: Can I redeem the bonds before maturity?
A: Early redemption options and penalties vary by bond issue. Refer to the specific bond terms and conditions.

Q5: How does this compare to fixed deposits?
A: Saving bonds typically offer fixed returns like FDs but may have different lock-in periods, interest payout structures, and tax implications.