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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
Interest Rates5.25% – 7.25% p.a.
Tenure6 Months – 10 Years
Minimum Deposit AmountINR 500
Withdrawal Charges1%

Axis Bank RD Interest Rates 2022

Senior Citizen RatesNormal RatesTenure
6.956.22 years Less than 30 months
6.956.230 months Less than 3 years
6.96.1517 months Less than 18 months
6.96.1518 Months Less than 2 years
6.96.1516 months Less than 17 months
6.96.1515 months Less than 16 months
6.856.113 months Less than 14 months
6.856.11 year 25 days Less than 13 months
6.856.114 months Less than 15 months
6.856.11 year 5 days Less than 1 year 11 days
6.856.13 years Less than 5 years
6.856.15 years to 10 years
6.856.11 year Less than 1 year 5 days
6.856.11 year 11 days Less than 1 year 25 days
5.25511 months Less than 11 months 25 days
5.25510 months Less than 11 months
5.2558 months Less than 9 months
5.2556 months Less than 7 months
5.2557 months Less than 8 months
5.2559 months Less than 10 months
5.25511 months 25 days Less than 1 year

Axis Bank RD rates range between 5.25% to 6.50% p.a for regular citizens. For senior citizens, the RD rates range between 5.50% to 7.25%. 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.
  • Deposit Rate: Axis Bank recurring deposit rate is in the range of 5.25% to 7.25% p.a. Also, the interest rate is compounded on a quarterly basis. Moreover, one can estimate the returns from RD investment using the recurring deposit calculator.
  • Preferential Interest Rates: Axis Bank offers preferential interest rates for senior citizens. Senior citizens are eligible for an additional 0.25% – 0.50% on their Axis Bank RD investments. The Axis Bank RD interest rates for them range between 5.50% – 7.25%.
  • 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
  • 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. 

Difference between Axis Bank RD and FD

TenureHighest RD RatesHighest FD Rates
6 months to 9 months5.50%5.50%
9 months to 1 Year5.75%5.75%
1 Year to 18 months7.00%7.00%
18 months to 3 years7.05%7.05%
3 years to 10 years7.25%7.25%
Note: Axis Bank interest rates are subject to change. The Axis Bank interest rate for FD and RD is the same.

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. 

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.

Can I open a recurring deposit account for a minor?

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

How to apply for Axis Bank RD?

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.

Is it possible to renew an RD account?

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

Recurring Deposits Rates by Other Banks