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 Details
|Normal Citizen Interest Rates||5.75% to 7.26%|
|Senior Citizen Interest Rates||6% to 8.01%|
|Premature Withdrawal Charges||1%|
|Highest RD Rates||8.01%|
|Minimum Deposit Amount||Rs. 500|
|Pending Instalment Penalty||1%|
|Tenure||6 Months – 10 Years|
Axis Bank RD Interest Rates 2023
|Tenure||General Citizen Interest Rates||Senior Citizen Interest Rates|
|2 Year to 2 Year 6 Months||7.26%||8.01%|
|2 Year 6 Months to 10 year||7.00%||7.75%|
|1 Year to Less than 2 Year||6.75%||7.50%|
|9 months Less than 1 Year||6.00%||6.25%|
|6 months Less than 9 months||5.75%||6.00%|
Axis Bank RD rates range between 5.75% to 7.26% p.a. for regular citizens. For senior citizens, the RD rates range between 6% to 8.01% p.a.. Also, one can estimate the returns from their 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.
Requirements of Axis Bank RD Scheme
Eligibility: Following are the eligibility criteria for opening an Axis Bank RD account
- Resident Individuals, including minors
- Sole Proprietary firms
- Associations and trusts
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.
- PAN Card,
- Aadhar Card,
- Driving licence,
- Government ID card,
- Senior Citizen Card
- Utility bills,
- 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:
- 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.
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.
Frequently Asked Questions
What are the limits on the minimum and maximum deposits?
The minimum deposit amount Axis Bank RD is INR 500 per month. And, there is no maximum amount of investment in Axis Bank RD.
Yes, one can open an Axis Bank RD account on behalf of a minor.
One can open an Axis Bank RD account through offline and online modes. For online mode, one has to visit the Axis Bank website. And for offline mode, one has to visit the nearest branch of the Axis Bank.
To be able to invest in Axis Bank RD, one needs to have all valid documents. They need to have an Axis Bank RD application form, duly filled and signed and passport size photographs. For proof of identity, they need a PAN card, Aadhar card, voter ID, and driving licence and for proof of residence, they need an Aadhar card, utility bills, and driving licence. For age proof, they need a birth certificate, matriculation certificate, and PAN card.
Yes, it is possible to renew an Axis Bank RD account. However, the renewal is possible as per Axis Bank norms and rules.
The current highest axis bank rd rates range between 5.75% to 7.26% p.a. for normal citizen and 6% to 8.01% p.a. for senior citizens in India.