Axis Bank RD Interest Rates

About Axis Bank Recurring Deposit

Axis Bank RDs are investments that allow investors to save small amounts regularly. The bank has a tenure of 6 months to 10 years, and the interest rates vary with the tenure. 

Axis Bank RD rates for regular citizen range between 5.75% to 7.26% p.a.. For senior citizens, Axis RD rates range between 6% to 8.01% p.a. . Estimate the returns from Axis Bank RD investment using the Axis Bank recurring deposit calculator. The RD rates of Axis Bank are higher than their saving account rates. Furthermore, the Axis Bank RD rate of interest differs based on the investor’s age, investment tenure, RBI policies and economic conditions in the country.

The interest that the recurring deposit earns is taxable as per the investor’s income tax slab rates. Also, one has to show this interest income under the head ‘Income from Other Sources’ during their tax filing. Moreover, if the interest income exceeds INR 40,000 (INR 50,000 for senior citizens) the bank deducts a TDS of 10%. Furthermore, if the investor furnishes the PAN card details, the TDS of 10% is applicable; if not, 20% TDS rate is deducted by the bank. 

Axis Bank Recurring Deposits Features

• Tenure: The Axis Bank recurring deposit tenure ranges between 6 months to 120 months, in multiples of 3 months
• Minimum and Maximum Deposit Amount: The minimum amount of investment in Axis Bank RD is INR 500, and in its multiples thereafter. However, there is no limit on maximum investment.
• Tax and TDS: Axis Bank RDs do not qualify for tax saving. The interest income that one earns from Axis Bank RDs is taxable as per the individual’s respective income tax slab rates. Moreover, Axis Bank deducts a TDS of 10% if the interest income per annum exceeds INR 40,000 (INR 50,000 for senior citizens). The 10% TDS is applicable only when PAN details are presented; else the bank deducts TDS at 20%.
  One can determine whether Axis Bank RD interest income is above or below the TDS threshold limit using the Axis Bank RD Calculator. Also, investors can calculate their income tax liability using Scripbox’s Income Tax Calculator.
• Premature withdrawal: Axis Bank allows investors to prematurely withdraw their recurring deposits. However, Axis Bank charges a penalty at an interest of 1% less than the applicable interest rate. 
• Nomination Facility: Depositors can nominate beneficiaries for their Axis Bank RDs.
• Convenience: Opening and managing recurring deposit investments are easy and also convenient through Axis Bank’s online portal.

Axis Bank RD Account Eligibility and Documents Required

Eligibility: Following are the eligibility criteria for opening an Axis Bank RD account

• Resident Individuals, including minors
• HUFs
• Sole Proprietary firms
• Companies
• Associations and trusts
• NRI’s

Deposit and account: One can open an Axis Bank recurring deposit account with a minimum investment of INR 500 and in multiples thereafter. However, there is no limit on the maximum investment amount for Axis Bank RD.

Documents Required:

• PAN Card,
• Aadhar Card,
• Driving licence,
• Government ID card,
• Senior Citizen Card
• Utility bills,
• Passport,
• Bank statement with cheque,
• Certificate or ID card issued by the post office

Withdrawal: Axis Bank allows investors to prematurely withdraw their RD investment, however, with a penalty at an interest of 1% less than the applicable interest rate. 

Nomination: Axis Bank RDs have a nomination facility where the account holder can nominate beneficiaries.

Types of Axis Bank Recurring Deposit Schemes

Axis Bank offers the following recurring deposit schemes:

Recurring Deposits

• Tenure: 6 months – 120 months (in multiples of 3 months)
• Minimum Deposit Amount: INR 500, and in multiples thereafter.
• Maximum Deposit Amount: No limit
• Tax Deducted at Source: Applicable
• Nomination Facility: Available
• Premature closure: Available, however, with a penalty of 1% 
• Penalty for late deposits:  If the instalment is delayed beyond the stipulated due date, then a penalty of INR 10 per INR 1000 per month is levied for the period of delay.

Can I open a recurring deposit account for a minor in Axis Bank?

Yes, one can open an Axis Bank RD account on behalf of a minor.

Is it possible to renew an RD account in Axis Bank?

Yes, it is possible to renew an Axis Bank RD account. However, the renewal is possible as per Axis Bank norms and rules.

Conclusion

Axis Bank RDs are a good investment instrument for investors who can save small amounts of money regularly. Also, RDs are considered low-risk investment options as they offer investors guaranteed returns. However, one must consider the taxes they have to pay on the interest income of recurring deposits. Therefore, investors looking for guaranteed returns and understanding the tax liability on interest income can consider investing in RDs. 

Resources

1. Axis Mutual Funds
2. Axis Fixed Deposit
3. Axis Bank SIP Calculator
4. Axis Bank FD Calculator
5. Axis PPF Calculator