Axis Bank Fixed Deposit

Axis Bank offers multiple fixed deposits for various tenures with different interest rates to its investors. The interest rate on Axis Bank FDs is higher than their savings account. One can invest in Axis Bank FDs in a hassle-free manner, enjoy their flexible tenures, and seamless transfers with just a minimum investment of INR 5,000. This article covers Axis bank FD, its features and interest rates in detail.

Axis Bank Fixed deposit schemes

Following are the types of Axis Bank fixed deposit schemes:

• Express Fixed Deposit
• Fixed Deposit
• Tax Saver Fixed Deposit
• Auto Fixed Deposit
• Fixed Deposit Plus

Axis Bank Express Fixed Deposit

Express fixed deposit is the first digital fixed deposit scheme; one can open the account in 3 minutes without a savings account. Depositors can fund their Express FD with a savings account of any bank in India. The scheme offers attractive interest rates, no penalty on premature withdrawals (up to 25% of the amount), and zero issuance fees.

• Minimum Deposit Amount: INR 5,000
• Maximum Deposit Amount: INR 9,000
• Minimum Deposit Tenure: 6 months
• Maximum Deposit Tenure: 12 months
• Eligibility: Indian resident with 18+ years of age with a valid Pan card and Aadhar card. And not an existing Axis Bank customer.

Axis Bank Fixed Deposit

Axis Bank Fixed Deposit (FD) is one of the most convenient and safe ways to grow savings. One can open an account online. Also, the account offers an easy transfer facility from a savings account to a fixed deposit. The scheme offers competitive interest rates to both long and short term fixed deposit investments. Furthermore, the scheme offers an auto roll out facility, where the fixed deposit interest is credited to the designated account. Or paid out to a different account.

Depositors can earn more interest with interest reinvestment. In other words, the interest accrued on the fixed deposit each quarter is invested along with the principal. The interest computation is done on a quarterly basis.

• Minimum Deposit Amount: INR 5,000 via mobile app or internet banking. INR 10,000 via bank branch.
• Maximum Deposit Amount: INR 9,000
• Minimum Deposit Tenure: 7 days
• Maximum Deposit Tenure: 10 years
• Eligibility:
  • Residents
  • Hindu Undivided Families
  • Sole Proprietorship Firms
  • Partnership Firms
  • Limited Companies
  • Trust Accounts

Axis Bank Tax Saver Fixed Deposit

The Tax Saver FD scheme offers attractive interest rates on lump sum investments and also the benefit of tax saving. Under Section 80C of the Income Tax Act, deposits up to INR 1,50,000 qualify for a tax deduction. The tax saving scheme comes in three options:

• Reinvestment Deposit
• Quarterly Interest Pay-out
• Monthly Interest Payout

Therefore, investors can choose the most suitable option depending on the interest payout. Also, depositors can claim tax benefit through FD receipt that the bank issues.

• Minimum Deposit Amount: INR 100
• Maximum Deposit Amount: INR 1,50,000
• Lock-in period: 5 years. Depositors cannot prematurely withdraw their deposit amount.
• Type of Account: Deposits can open wither a single or joint type of deposits.
• Eligibility: Resident Indians and Hindu undivided families

Axis Bank Auto Fixed Deposit

The Auto Fixed Deposit links the existing savings account to the fixed deposit. The account facilitates automatic transfer of money when the savings account balance crosses INR 25,000. Also, the automatic transfer happens in multiples of INR 5,000. Furthermore, the scheme offers easy liquidation and auto-renewal of deposits.

• Minimum Deposit Tenure: 6 months
• Maximum Deposit Tenure: 5 years
• Liquidity: Depositors can access the money in the fixed deposit through a cheque or ATM withdrawals. Also, the amount is automatically reverse swept to the savings account when the balance is below INR 25,000.
• Eligibility: The depositor has to be an existing Savings Account holder and must have a valid PAN card.

Axis Bank Fixed Deposit Plus

Axis Bank’s Fixed Deposit Plus scheme offers a higher interest rate in comparison to regular FDs. The interest is available on a simple and compounding basis. Furthermore, the scheme is available to both domestic and NRI customers. Also, the scheme doesn’t offer an auto-renewal facility. Depositors can pick any of the types of following deposits:

• Short Term Deposits
• Reinvestment Deposits
• Monthly and Quarterly Pay-out

Following are the scheme details

• Minimum Deposit Amount: INR 5,00,00,000
• Maximum Deposit Amount: No limit
• Minimum Deposit Tenure: 7 days
• Maximum Deposit Tenure: 10 years
• Eligibility:
  • Residents
  • Hindu Undivided Families
  • Sole Proprietorship Firms
  • Partnership Firms
  • Limited Companies
  • Trusts

Key Features of Axis Bank Fixed Deposit Schemes

• Tenure: The tenure of Axis bank FD ranges from seven days to ten years. One cannot change the tenure of the FD once it has commenced.
• Minimum and maximum investment: The minimum investment in Axis bank FD through online mode is INR 5,000, and offline mode is INR 10,000. However, there is no limit on the maximum amount of investment in Axis bank FD.
• Axis Bank FD rates: Axis Bank FD rates range between 2.5% and 5.75 for regular citizens and between 2.5% and 6.5% for senior citizens. Moreover, Axis bank offers an additional 0.5% interest to senior citizens on their FDs. Investors can choose to get the interest monthly, quarterly, half-yearly, yearly, or at maturity.
• Premature withdrawal: All Axis bank FDs can be withdrawn prematurely except for tax saving FDs. Axis bank charges a 1% penalty on the interest for premature withdrawals. However, there is no penalty for premature withdrawal of NRE deposits.
• Loan against FD: Axis bank offers loans against their FDs. Investors can get up to 85% of the deposit amount as a loan. Moreover, the minimum amount of loan to be taken on Axis Bank FD is INR 25,000. The interest rate for the loan will be 2% above the Axis FD rate.
• Nomination facility: Axis bank FD investors can nominate beneficiaries for their FDs.
• Auto-renewal: Investors can opt for auto-renewal of their Axis Bank FDs.
• Safety: All Axis bank deposits are covered by the Deposit Insurance Scheme of RBI. The scheme covers all Axis bank deposits up to INR 5,00,000.
• Additional payments: Investors cannot deposit an additional amount in an Axis bank FD once it has commenced. However, they can open a fresh FD with the new amount.

Does Axis Bank offer Recurring Deposits?

Axis Bank offers recurring deposits to its depositors. Axis bank RDs have a minimum tenure of 180 days and maximum tenure of 10 years. The minimum investment in Axis bank RD is INR 500, and there is no limit on the maximum investment. The interest rate for regular citizens is 4.4% and for senior citizens is 4.65%. One can invest in Axis bank RD through either internet banking or mobile banking or by physically visiting an Axis bank branch.

How to open an Axis Bank FD deposit account?

One can open an Axis Bank FD account through various modes such as Internet Banking, Mobile App and offline.

Internet Banking

The following steps will help an individual to open an Axis Bank FD account through internet banking:

• Log in to the Internet Banking account and select the ‘Deposit’ option.
• Next, click on the ‘Create Fixed Deposit’ option.
• Provide all the required information and nominee details.
• On confirmation, the fixed deposit amount will be debited from the Savings Account to the Fixed Deposit account. Depositors will get a web receipt of the fixed deposit instantly.

Upon successful creation, the Fixed Deposit advice will either be emailed to the registered email address, or a physical advice will be sent to the communication address. Alternatively, depositors can also download the FD advice through internet banking after one working day of booking the deposit.

Through Mobile App

Axis Bank App

The following steps will guide in opening an FD account through Axis Bank Mobile App:

• Download the Axis Bank App and log in.
• Select the ‘Deposit’ option to proceed.
• Next, select the ‘Open FD’ option.
• Provide all the required information and nominee details.
• On confirmation, the fixed deposit amount will be debited from the Savings Account to the Fixed Deposit account. Depositors will get a web receipt of the fixed deposit instantly.

Upon successful creation, the Fixed Deposit advice will either be emailed to the registered email address, or a physical advice will be sent to the communication address. Alternatively, depositors can also download the FD advice through internet banking after one working day of booking the deposit.

Offline Axis Bank FD Opening

To open an Axis Bank FD account offline, one has to visit the nearest Axis Bank branch. Fil the Axis Bank FD application form and submit all the necessary documents. Make the deposit of the required funds to open the fixed deposit. Upon successfully processing the application, Axis bank will provide an FD receipt.

Documents Required to Open Axis Bank FD

The documents required by all eligible investors are the following:

• Photographs,
• Introduction by other banks or Axis Bank Savings account holders of the last six months
• ID proofs (passport, driving licence, Aadhar card). Also, one would need a copy of the trust deed, partnership deed, laws of the association, and any other document as required by the trust, partnership firm, and company.

Eligibility to Open Axis Bank FD

Only eligible investors can invest in Axis Bank FD. The eligibility criteria to invest in Axis Bank FD is:

• Indian residents,
• Sole proprietorship firms
• Partnership firms
• Hindu Undivided Families (HUF)
• Trust accounts
• Limited companies

How are Axis Bank FDs taxed?

Only investment in Axis bank Tax Saving FDs qualifies for tax saving up to INR 1,50,000 per annum. Investment in no other Axis bank FDs qualifies for tax saving under Section 80C of the Income Tax Act. The interest income from Axis FD is taxable as per the investor’s income tax slab rates. Moreover, the interest income is subject to a TDS of 10% if the income exceeds INR 40,000 per annum. For senior citizens, the limit is INR 50,000 per annum. Also, if the investor doesn’t disclose PAN Card details to Axis Bank, then the TDS rate will be 20%.

Is Axis Bank FD safe?

Axis bank FDs guarantee return in the form of interest. The interest is paid regularly or at maturity as per the choice of the investor. Moreover, all Axis bank deposits are covered by the Deposit Insurance Scheme of RBI. The scheme covers all Axis bank deposits up to INR 5,00,000. Hence Axis Bank FDs are safe for investment.

Frequently Asked Questions