Axis FD Interest Rates 2024

In 2024, Axis Bank presented a diversified array of fixed deposit interest rates catering to distinct tenures and customer segments. Noteworthy among these rates is the highest interest rate of 7.10% for general depositors applying to a tenure spanning 15 months to less than 5 years. Senior citizens, on the other hand, are offered an even more lucrative rate of 7.75% for FDs maturing between 5 and 10 years. Eligibility criteria encompass a spectrum of interest rates ranging from 3% to 7.10% p.a. for the general public and 3.50% to 7.75% p.a. for senior citizens, applying to tenures spanning 7 days to 10 years. A nominal minimum deposit of ₹5,000 is required for initiating an FD account with Axis Bank. It’s imperative to note that the interest earned on Axis Bank FDs is subject to taxation under the Income Tax Act, 1961, with the bank deducting TDS at a rate of 10% if PAN is provided and 20% otherwise. Additionally, Axis Bank extends a tax-saver FD option eligible for a deduction of up to ₹1.5 lakh under Section 80C, coupled with a lock-in period of 5 years. Furthermore, senior citizens enjoy preferential treatment with an extra 0.50% interest on their FDs, enhancing the appeal of Axis Bank’s offerings.

Geeky Takeaways:

• In 2024, Axis Bank offered diversified fixed deposit interest rates for different terms and customer segments.
• The highest rate was 7.10% for 15 months to <5 years of tenure.
• Senior citizens received 7.75% for 5-10 years fixed deposits, making it more lucrative.
• They received 0.50% extra interest, enhancing the appeal of Axis Bank’s fixed deposit offerings.
• Rates ranged from 3%-7.10% for the general public and 3.50%-7.75% for senior citizens as per the tenure of 7 days to 10 years.

Axis Bank FD Rates 2024

Tenure	Rate of Interest for General Citizens  (Below 60 Years of Age)	Rate of Interest for Senior Citizens  ( Above 60 Years of Age)
7 to 14 days	3.00%	3.50%
15 to 29 days	3.00%	3.50%
30 to 45 days	3.50%	4.00%
46 to 60 days	4.25%	4.75%
61 days < 3 months	4.50%	5.00%
3 months < 4 months	4.75%	5.25%
4 months < 5 months	4.75%	5.25%
5 months < 6 months	4.75%	5.25%
6 months < 7 months	5.75%	6.25%
7 months < 8 months	5.75%	6.25%
8 months < 9 months	5.75%	6.25%
9 months < 10 months	6.00%	6.50%
10 months < 11 months	6.00%	6.50%
11 months to 11 months 24 days	6.00%	6.50%
11 months, 25 days < 1 year	6.00%	6.50%
1 year to 1 year, 4 days	6.70%	7.20%
1 year 5 days to 1 year 10 days	6.70%	7.20%
1 year 11 days to 1 year 24 days	6.70%	7.20%
1 year, 25 days < 13 months	6.70%	7.20%
13 months < 14 months	6.70%	7.20%
14 months < 15 months	6.70%	7.20%
15 months < 16 months	7.10%	7.60%
16 months < 17 months	7.10%	7.60%
17 months < 18 months	7.10%	7.60%
18 Months < 2 years	7.10%	7.60%
2 years < 30 months	7.10%	7.60%
30 months < 3 years	7.10%	7.60%
3 years < 5 years	7.10%	7.60%
5 years to 10 years	7.00%	7.75%

Features and Benefits of Axis Bank Fixed Deposit

1. Competitive Interest Rates: Axis Bank is committed to providing customers with competitive interest rates that stand out in the market. The rates are carefully structured to offer attractive returns, catering to the financial objectives and preferences of investors engaging in both short- and long-term fixed deposits. This commitment enhances the bank’s appeal as a reliable destination for those seeking optimal returns on their investments.

2. Flexible Tenure Option: Recognizing the unique financial needs and preferences of its diverse customer base, Axis Bank offers a wide range of flexible tenure options. Ranging from short-term to long-term durations, customers can select the tenure that aligns with their financial goals and liquidity requirements. This flexibility empowers customers to customize their fixed deposit strategy according to their circumstances.

3. Accessible Minimum Investment: Axis Bank prioritizes inclusivity by setting a modest minimum deposit requirement of ₹5,000. This accessibility ensures that a broad spectrum of individuals, irrespective of their financial capacity, can engage with and benefit from the stability and returns offered by fixed deposits with Axis Bank. It reflects the bank’s commitment to making investment opportunities available to a wide audience.

4. Automatic Roll-out Facility: Simplifying the process of fixed deposit renewal, Axis Bank offers an automatic roll-out facility. This feature eliminates the need for customers to actively manage the renewal process, ensuring a seamless continuation of their investment. By automating this aspect, the bank enhances customer convenience and promotes a hassle-free banking experience.

5. No Premature Encashment Penalties: In a customer-centric move, Axis Bank allows the premature withdrawal of up to 25% of the fixed deposit amount without imposing any penalties. This flexibility acknowledges the dynamic financial needs of customers, providing them with the option to access a portion of their funds before the maturity period without incurring additional costs. This customer-friendly approach enhances the overall appeal of Axis Bank’s fixed deposit offerings.

6. Overdraft Facility: Axis Bank goes beyond traditional fixed deposit features by offering an overdraft facility linked to these deposits. Customers can leverage their fixed deposits to secure funds, with the flexibility to borrow up to 85% of the FD value. Importantly, interest is payable solely on the amount utilized and only for the duration of its utilization, making this facility a cost-effective and efficient financing option for customers.

7. Digital Services for Seamless Transactions: Understanding the importance of digital convenience, Axis Bank provides robust digital services that enable customers to initiate and manage fixed deposit accounts remotely. This includes the seamless transfer of funds from customers’ savings accounts to their fixed deposits, promoting efficiency and convenience in banking transactions.

8. Diverse Deposit Types: Recognizing the diverse needs and preferences of investors, Axis Bank offers a range of deposit types. These include options such as short-term deposits, reinvestment deposits, and those with monthly and quarterly payout structures. This diverse array allows customers to tailor their fixed deposit choices based on their investment strategies and income distribution preferences, showcasing the bank’s commitment to catering to the unique financial goals of its clientele.

Types of Axis Bank FD Schemes

1. Regular Fixed Deposit: Axis Bank’s Regular Fixed Deposit scheme offers a traditional yet reliable investment option. Investors can commit their funds for a fixed period spanning from 7 days to 10 years. The interest rates are dynamic and dependent on the tenure and the deposited amount. This standard FD provides stability and predictable returns, making it suitable for a wide range of investors.

2. Digital Fixed Deposit: The Digital Fixed Deposit scheme is tailored for the modern, tech-savvy investor. With a minimal deposit requirement of ₹5,000, customers can conveniently open an FD account online. The flexible tenure, ranging from 7 days to 10 years, aligns with the diverse preferences of customers, combining the ease of digital transactions with the stability of fixed deposits.

3. Tax-Saver Fixed Deposit: For customers seeking tax benefits, Axis Bank offers the Tax-Saver Fixed Deposit scheme. With a lock-in period of 5 years, this scheme qualifies for tax deductions under Section 80C of the Income Tax Act. It provides a dual advantage of tax savings and secure investment, catering to the long-term financial planning of customers.

4. Fixed Deposit Plus: The Fixed Deposit Plus scheme is designed for those seeking enhanced returns. With a minimum deposit requirement of ₹2 crore, this scheme offers a higher rate of return compared to regular FDs. The flexible tenure, spanning from 7 days to 10 years, provides investors with the opportunity to optimize their returns based on their financial objectives.

5. Auto Fixed Deposit: The Auto Fixed Deposit scheme introduces automation into the investment process. Customers can set up an automatic transfer from their savings account to their FD account, ensuring consistent and disciplined investments. With a minimum deposit of ₹5,000 and a flexible tenure ranging from 7 days to 10 years, this scheme combines convenience with financial planning.

6. Reinvestment Fixed Deposit: The Reinvestment Fixed Deposit scheme caters to customers looking to maximize their returns. Interest earnings are automatically reinvested into the FD account, compounding over time. With a minimum deposit of ₹5,000 and a flexible tenure ranging from 7 days to 10 years, this scheme is ideal for those seeking compounded growth on their investments.

7. Senior Citizen Fixed Deposit: Specifically designed for senior citizens, the Senior Citizen Fixed Deposit scheme offers higher interest rates compared to regular FDs. With a minimum deposit of ₹5,000 and a flexible tenure ranging from 7 days to 10 years, this scheme acknowledges the unique financial needs of senior investors, providing them with a secure and lucrative investment avenue.

6 Steps to Invest in Axis Bank FD

Step 1: Visit the Axis Bank website or use the mobile app to initiate the FD investment process. Navigate to the FD section to explore the available schemes.

Step 2: Choose the FD scheme that aligns with your investment preferences and financial goals. Axis Bank offers a diverse range of schemes catering to various needs.

Step 3: Enter essential information such as the deposit amount, preferred tenure, and any other required details. Ensure accuracy in the details provided for a seamless application process.

Step 4: Submit the finished application form along with the pivotal documents. The application form serves as a formal request for opening the fixed deposit account.

Step 5: Deposit the required funds into the designated account. This step finalizes the creation of your fixed deposit and initiates the interest accrual process.

Step 6: Upon successful processing of your application, Axis Bank will issue an FD receipt. This receipt serves as a confirmation of your fixed deposit investment, containing essential details.

Eligibility to Open an Axis FD Account

1. Inclusive Account Holders: Axis Bank takes a broad approach to its fixed Deposit offerings, making them available to a diverse range of account holders. This includes Indian-resident individuals, non-resident Indians (NRIs), and senior citizens. By catering to a wide demographic, Axis Bank ensures that its FD schemes are accessible to various investors with different financial needs and goals.

2. Accessible Minimum Deposit: The bank’s commitment to financial inclusivity is further evident in its modest minimum deposit requirement. With a nominal amount of ₹5,000, Axis Bank’s FDs become an accessible investment option for a broad spectrum of individuals. This lower entry barrier encourages more people to explore the benefits of fixed-term investments without significant financial constraints.

3. Eligibility Criteria Overview: Axis Bank extends its FD services to a diverse set of entities and individuals, fostering a comprehensive eligibility framework. Apart from individuals, eligible account holders include Hindu Undivided Families (HUFs), sole proprietorship firms, partnership firms, limited companies, and trust accounts. This inclusivity allows different financial entities to leverage the benefits of Axis Bank FDs, contributing to a more varied and dynamic investor base.

4. Documenting Your Investment: To initiate the FD account opening process, individuals need to provide essential documents. This includes proof of identity, proof of address, and proof of age. These documents are crucial for ensuring the legitimacy of the investment process, complying with regulatory standards, and establishing a secure financial relationship between the bank and the investor.

5. Varied FD Schemes: Tailoring to Diverse Needs: Axis Bank offers a diverse range of FD schemes to cater to the unique financial goals and preferences of investors. The array of options includes the standard Regular FD, Digital FD for online convenience, Reinvestment FD for interest reinvestment, Tax-Saver FD for tax benefits, Auto FD for automatic fund transfers, Fixed Deposit Plus for enhanced returns, and Senior Citizen FD with preferential interest rates. This variety empowers investors to choose the scheme that aligns best with their financial objectives, promoting flexibility and customization.

Documents Required to Open Axis FD

1. Proof of Identity: To establish the identity of the applicant, Axis Bank mandates the submission of documents that serve as reliable proof. Accepted forms include a voter’s ID, Aadhar Card, or other government-issued photo identity proof. This stringent verification process ensures that the account opening adheres to regulatory standards and provides a secure foundation for the financial relationship.

2. Proof of Address: To ensure transparency and accuracy in customer information, Axis Bank requires proof of address during the FD account opening process. Valid documents for this purpose encompass a utility bill, voter’s ID, or Aadhar card. This verification step is crucial for establishing the residential details of the applicant and maintaining the integrity of the banking relationship.

3. Proof of Age: Verification of the applicant’s age is a vital aspect of the account opening process. Axis Bank accepts any valid document that serves as proof of age, offering flexibility to applicants. Documents such as the Aadhar Card, voter’s ID, or passport are recognized as suitable evidence. This step not only adds a layer of security but also ensures compliance with legal requirements.

4. Passport Size Photographs: The inclusion of recent passport-size photographs of the applicant is a standard requirement for opening an FD account with Axis Bank. This visual representation helps in personalizing the account and is an essential element in the overall documentation process. The photographs contribute to the accurate identification and authentication of the account holder.

5. PAN Card: A fundamental requirement for financial transactions in India, the submission of a copy of the PAN card is mandatory for opening an FD account with Axis Bank. This document plays a crucial role in complying with taxation regulations and ensures that the bank maintains accurate records of the customer’s financial activities.

Tax on Axis Bank Fixed Deposit

The interest accrued on Axis Bank Fixed Deposits falls under the purview of taxation as outlined by the Income Tax Act of 1961. Axis Bank implements Tax Deducted at Source (TDS) by prevailing regulations, with a TDS rate of 10% when a PAN is provided and 20% in the absence of a PAN, sans any additional surcharge or cess. The tax liability is subject to the individual’s income-tax slab. Notably, for Tax Saver Fixed Deposits, the invested amount qualifies for an exemption of up to ₹1.5 lakh under Section 80C of the Income Tax Act, while the interest earned remains taxable. These tax-saver FDs mandate a minimum lock-in period of 5 years. To gain insights into the payable amount and applicable rates, utilizing a tax-saving FD calculator is imperative for comprehensive financial planning and adherence to tax regulations.

Loan Against Axis Bank FD

Axis Bank extends a loan against a fixed deposit feature, enabling customers to leverage the value of their FD. Notably, the interest rate applied to this loan is typically more favorable than that of personal loans, presenting a cost-effective borrowing option. The overdraft facility against FD comes with a minimum tenure of 3 months, and customers enjoy the advantage of no prepayment charges. With a minimum loan amount set at ₹25,000, repayments can be conveniently executed through various banking channels, including NEFT, RTGS, IMPS, and cheques. The accessibility of this loan facility is facilitated through visits to the nearest Axis Bank branch or by utilizing the bank’s online portal, ensuring flexibility and convenience for customers.

Key Points to Remember

• Loan Percentage: Axis Bank provides FD holders with the flexibility to borrow up to 85% of their fixed deposit, representing the principal amount or the initial investment. This generous loan percentage caters to a substantial portion of the depositor’s financial needs.
• Features and Benefits: The loan against the FD facility from Axis Bank is designed to prevent the premature liquidation of fixed deposits. It offers an attractive proposition by extending a loan and overdraft facility to FD account holders, accompanied by low FD interest rates. It ensures that customers can access funds conveniently without sacrificing the interest income from their fixed deposits.
• Eligibility and Application: To avail the loan against FD, depositors need to meet specific eligibility criteria, which include possessing a valid Axis Bank Fixed Deposit. The application process is streamlined, allowing customers to apply through Axis Bank’s Internet Banking or Mobile Banking platforms, enhancing accessibility and convenience.
• Documentation and Process: Customers interested in this facility can visit the nearest Axis Bank branch, where they need to fill out the application form. The bank follows a systematic process, and loan sanctioning is contingent upon a thorough assessment adhering to the bank’s credit policy. This ensures a transparent and efficient procedure for obtaining a loan against Axis Bank FD, allowing customers to navigate financial challenges effectively.

Premature Closure of Axis Bank Fixed Deposit

1. Penalty for Premature Closure: For rupee term deposits below ₹5 crore initiated or renewed after December 15, 2017, the penalty rate for premature closure does not apply to the first partial withdrawal, provided it remains within 25% of the original principal value. Subsequent partial withdrawals, however, incur the premature closure penalty rate on the entire withdrawal amount. Additionally, for deposits renewed or opened after December 15, 2020, with a tenure of 2 years or more, no penalty is imposed on premature closure if the entire deposit is withdrawn after 15 months from booking.

2. Changes and Benefits: Axis Bank’s recent announcement reflects a departure from the conventional practice of imposing penalties for premature termination. Effective December 15, 2020, the bank has abolished the premature closure penalty for all new retail term deposits with a tenure of 2 years or more. This customer-centric approach aims to encourage long-term savings without concern for penalties in the event of unforeseen liquidity needs.

3. Exceptions and Customer Advantages: This initiative underscores Axis Bank’s commitment to creating a customer-friendly banking environment. The removal of premature closure penalties for specified scenarios provides flexibility and peace of mind to depositors. Customers can also avail of the added benefit of making premature withdrawals up to 25% of the deposit amount without incurring any penalties, especially through the Axis Bank Digital Fixed Deposit platform. This innovative approach aligns with Axis Bank’s mission to enhance customer satisfaction and cater to the evolving needs of its clientele.

Frequently Asked Questions (FAQs)

1. Which type of FD is recommended at Axis Bank?

Answer:

Axis Bank’s Fixed Deposit Plus stands out as an excellent choice, offering a higher rate of return compared to regular FDs. This option is available to both NRI and domestic customers.

2. Which bank provides an 8% interest rate?

Answer:

Among scheduled private sector banks, DCB Bank and RBL Bank offer the best FD interest rates, reaching up to 8.00% p.a. For scheduled public sector banks, Punjab & Sind Bank leads with an FD rate of up to 7.40% p.a. for a 444-day tenure.

3. What is the minimum balance required for a fixed deposit at Axis Bank?

Answer:

The minimum investment amount for booking a bank FD is ₹5,000 when using the mobile app or Internet banking. If you prefer to visit a bank branch for this process, the minimum investment amount is ₹10,000.

4. What are the benefits of having an FD at Axis Bank?

Answer:

Axis Bank’s FD offers various advantages, including competitive interest rates, fee-free issuance, and the flexibility of premature withdrawal without penalties for up to 25% of the deposited amount. It provides a swift and efficient way to save funds.

5. What is the current FD rate for senior citizens at Axis Bank?

Answer:

Axis Bank offers attractive fixed deposit interest rates, ranging from 3.00% p.a. to 7.10% p.a. for general citizens and 3.50% to 7.75% p.a. for senior citizens, applicable to deposits less than Rs. 2 crores.