9 Mins

Introduction

Axis Bank offers multiple types of FDs to cover different investor needs. The interest rate on their FDs is higher than their savings account rates. With a minimum investment of just INR 5,000, one can invest in Axis Bank FDs that offer flexible tenures and seamless transfers and, in a hassle-free manner. To invest in Axis Bank FDs, one needs to either visit their branch or can invest online.

Axis Bank FD interest rates 2020

The table below shows Axis Bank FD interest rates for regular citizens and senior citizens for different tenures.

Axis Bank interest rates on fixed deposits are higher than their savings bank account rate. Also, the interest rate for senior citizens is slightly higher than regular FD interest rates. Investors can choose to get the interest at the time of maturity or regularly (monthly, quarterly, half-yearly, or annually).

The highest Axis Bank FD rate is 5.50% for a regular investor for the tenure of 5-10 years. For the same tenure, the senior citizen FD rate is 6.0%. 

TenureFD Interest RatesSenior Citizen FD Interest Rates
7 days to 14 days2.50%2.50%
15 days to 29 days2.50%2.50%
30 days to 45 days3.00%3.00%
46 days to 60 days3.00%3.00%
61 days to 3 months3.00%3.00%
90 days to 119 days3.50%3.50%
4 months to 5 months3.50%3.50%
5 months to 6 months3.50%3.50%
6 months to 8 months 29 days4.40%4.65%
9 months to 11 months 25 days4.40%4.65%
11 months 25 days to 1 year5.15%5.40%
13 months to 17 months 29 days5.10%5.75%
18 months to 2 years5.25%5.90%
30 months 1 day to 3 years5.40%5.90%
1 year to 1 year 5 days5.15%5.80%
1 year 5 days to 1 year 11 days5.10%5.75%
1 year 11 days to 1 year 25 days5.10%5.75%
1 year 25 days to 12 months 29 days5.10%5.75%
2 years to 30 months5.40%6.05%
3 years to 4 years 364 days5.40%5.90%
5 years to 10 years5.50%6.00%
Note: Axis Bank revises Fixed Deposits rate periodically

Key Features of Axis Bank Fixed Deposit

Axis Bank Fixed Deposit accounts offer investors with high interest rates and minimum risk. Following are the key features of Axis bank fixed deposit account:

Tenure

The fixed deposit tenure ranges between seven days to ten years. One cannot change the tenure of their FD investment, once the FD term has commenced. However, one can opt for premature withdrawal and start a new FD with the desired tenure.

Minimum and Maximum Deposit Amount

The minimum amount that one requires to invest in Axis Bank FD through online mode (internet banking) is INR 5,000 and through offline mode is INR 10,000. There is no limit on the maximum investment amount.

Axis Bank FD rates

Axis bank FD offers interest rates in the range of 2.50% p.a to 5.50% p.a.

Preferential Interest Rates

Axis bank offers preferential interest rates to its senior citizen depositors. The interest rates range between 2.50% p.a to 6.05% p.a.

Eligibility criteria

Indian residents, sole proprietorship firms, partnership firms, Hindu Undivided Families (HUF), trust accounts, and limited companies are eligible to invest in Axis Bank FDs.

Documents required

The documents required by all eligible investors are photographs, introduction by other banks or Axis Bank Savings account holders of the last 6 months, and ID proofs (passport, driving licence, Aadhar card). Also one would need, copy of the trust deed, partnership deed, by laws of the association, and any other document as required by the trust, partnership firm, and company.

Additional payments

One cannot invest an additional amount in their Axis Bank FD once the FD tenure has commenced. However, one can always open a fresh FD with an additional amount.

Tax and TDS

Investment in Axis Bank tax-saving FDs qualify for tax saving under Section 80C of the Income Tax Act, 1961. Investors can claim the same while filing their tax returns. All other Axis Bank FDs do not qualify for tax saving.

The interest that one earns on their Axis Bank FD investment is taxable. The tax rate depends on the individual’s income tax slab rates. There is also a TDS of 10% if the interest income exceeds INR 40,0000. In case of senior citizens, it is INR 50,000. Also, this rate is applicable only if the PAN details are submitted. Else, the TDS rate is 20%.

To know whether the interest income one might earn from their Axis Bank FD is above or below the TDS threshold limit, they can use multiple bank FD calculators available online. Also, they can use the Income Tax Calculator to estimate their tax liability. Scripbox’s Income Tax Calculator is available online and is free to use.

Safety

Deposit Insurance Scheme of RBI covers axis bank deposits up to INR 5,00,000.

Premature Withdrawal

Axis bank depositors can prematurely withdraw their deposit amounts. Axis Bank charges a penalty for premature withdrawal. For all deposits that are prematurely withdrawn, a penalty of 1% is charged on the interest. For NRE term deposits, there is no penalty on premature withdrawal.

Nomination Facility

Axis bank depositors can nominate beneficiaries for their deposits.

Auto-Renewal

Axis bank provides the auto-renewal facility of the FD account.

Convenience

Depositors can open and manage their Axis bank FD investments online at their convenience.

Loan against FD

Axis bank offers loans against FD. This helps the depositors meet their liquidity requirements without having to break the FD. An investor can get up to 85% of the loan amount. The minimum loan amount is INR 25,000, and the interest will be 2% above the Axis Bank FD interest rate.

Loans such as loan against property (home loan), education loans, business loan, etc., can be taken against an FD. One can always calculate their loan EMI using the loan EMI calculator. The loan EMI calculator works as a personal loan EMI calculator, a home loan calculator and car loan calculator. The investor can also use this EMI calculator in multiple scenarios by changing the personal loan interest rate, home loan interest rate and car loan interest rate.

PAN Card

A PAN card isn’t mandatory to open an Axis Bank FD account. However, if details of PAN aren’t submitted, the following are the implications of the same. The TDS rate will be 20%, instead of 10%, as per the regulations of Section 206AA. Also, no TDS certificate will be issued. All exemptions certificates will be invalid, including Form 15G/H.

Requirement of Savings account

One would require an Axis Bank savings account to invest in their fixed deposit.

Types of Fixed Deposit Schemes offered by Axis Bank

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

Types of Fixed Deposit Schemes: In Detail

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.

Fixed Deposit

Axis Bank Fixed Deposit (FD) is one of the most convenient and safe ways to grow savings. One can open the account online. Also, the account offers easy transfer facility from savings account to the 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

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 the 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 Payout
  • Monthly Interest Payout

Therefore, investors can choose the most suitable option depending on the interest pay-out. 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

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. 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.

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 the auto-renewal facility. Depositors can pick any of the types of following deposits:

  1. Short Term Deposits
  2. Reinvestment Deposits
  3. Monthly and Quarterly Pay-out
  • 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

Does Axis Bank offer Recurring Deposits?

Yes, Axis Bank offers recurring deposits to its depositors. Their recurring deposits have a minimum tenure of 180 days and a maximum tenure of 10 years with interest rates varying from 6.05% to 6.50%. Depositors can open an RD account with Axis Bank either by going to the bank branch or online using net banking. Below are the Axis Bank RD interest rates for different tenures.

TenureGeneral RatesSenior Citizen Rates
1 year 11 days to 12 months 29 days6.40%6.90%
9 months to 364 days6.05%6.55%
1 year to 1 year 4 days6.40%6.90%
14 months to 16 months 29 days6.40%6.90%
13 months to 13 months 29 days6.40%6.90%
1 year 5 days to 1 year 10 days6.40%6.90%
17 months to 17 months 29 days6.40%6.90%
18 months to 1 year 364 days6.50%7.00%
2 years to 2 years 364 days6.50%7.00%
3 years to 4 years 364 days6.50%7.00%
5 years to 10 years6.50%7.00%
Note: Axis Bank revises RD interest rates periodically