Axis Bank FD Rates: Axis Fixed Deposit Scheme Interest Rate
Bank Fixed deposit is safe to deposit to park your surplus. Today, our post is centered on Axis bank FD rates. Axis bank is a well-reputed, third-largest private bank that proffers multiple fixed deposit avenues.
So, today’s post is all about “Axis Bank Fixed Deposit Rates”. The bank does not permit to withdraw or deposit an extra amount during the tenure of your Fixed Deposit.
The interest rate offered by the bank is lucrative and attractive.
Stay tuned for the post to learn more about Axis Bank FD rates.
In the post, we are going to unveil the following details, let’s check
- Benefits of Axis Bank Deposit
- Axis Short Term Fixed Deposit
- Axis Bank Medium and Long Term Fixed Deposit Rates
- Factors Affecting Fixed Deposit Rate
- FD in Axis Bank- Premature Withdrawal
- Loan against Axis Bank Fixed Deposit
- Axis Bank FD Calculator
- Axis Bank Fixed Deposit
- Documents Needed to open a fixed deposit account with Axis Bank
- Frequently Asked Question on Axis Bank Fixed Deposit
- Best Investment Options In India
What are the Benefits of Axis Bank Fixed Deposit?
- Provides lucrative returns on the deposited amount
- Attractive returns on short term deposit as well
- Hassle-free opening FD procedure
- Nomination facility is given to the depositor
- Automatic rollover both the interest and the principal amount
- Axis Bank FD Interest Rates, JANUARY 2021
- Axis Bank FD rates
Axis Bank FD Interest Rate 2021
| Tenure | General Public FD Rate | Senior Citizens FD Rate |
|---|---|---|
| 7 days to 29 days | 2.50% | 2.50% |
| 30 days < 3 months | 3.00% | 3.00% |
| 3 months < 6 months | 3.50% | 3.50% |
| 6 months < 11 months 25 days | 4.40% | 4.65% |
| 11 months 25 days < 1 year | 5.15% | 5.40% |
| 1 year < 1 year 5 days | 5.15% | 5.80% |
| 1 year 5 days < 18 months | 5.10% | 5.75% |
| 18 months < 2 years | 5.25% | 5.90% |
| 2 years < 30 months | 5.40% | 6.05% |
| 30 months < 5 years | 5.40% | 5.90% |
| 5 years to 10 years | 5.50% | 6.00% |
- The above rates are applicable for deposits of below 1 crore
- The interest rates are subject to changes as per the discretion of the bank.
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Axis Bank Short Term Fixed Deposit Rates
- The tenure of short term FD is 7 days to 1 year
- For short term fixed deposit, you can earn returns on your investment anywhere between 3.50% and 7.00 percent (regular FDs)
- Senior citizens can earn interest between 3.50% To 7.25% on their deposit. And for deposit above 5 crore rupees, the range lies between 5.75% to 7.70%.
Axis Bank Medium and Long Term Fixed Deposit Rates
- The duration/tenure of long term fixed deposit can be 1 year to 10 year
- If your deposited amount is less than 1 and 5 Crore, the rate of interest lies between 50% to 7.75%
- The rate of interest will range between 7.50% to 7.90% for senior citizens depositing the amount lessen 1 crore. And for the deposit of rupees 1 and 5 crores, the rate of interest ranges from 7.50% to 8.40%
- And for deposit above 5 crore rupees, the rate of interest lies between 7.50 and 8.00%
Factors Affecting Fixed Deposit Rate
What are those factors that determine the fixed deposit rate? Are you inquisitive to know what those factors, please read below are?
- Policies Framed by Reserve Bank of India- Dear depositors, as per the RBI guidelines, the change in cash reserve ratio, and repo rate affects the interest rates of all the banking instrument including the fixed deposit
- Recession- it results in a decrease in the interest rate offered on the fixed deposit During the time of recession, RBI is forced to release the funds in the market which it maintains by lowering the rates on cash reserve of the banks and hence, providing them with additional liquidity. As a result of high liquidity and low credit demand, banks reduce the rates on FD.
- Inflation- Do you know, inflation has a positive impact on Fixed deposit interest rate.
- The current state of the Economy- Economic condition of the country is the crucial and substantial facts that affect the fixed deposit interest rate. In a booming economy, people are more willing to take larger credit to meet their business & Personal needs.
During the period of high credit call, the bank offers a higher rate of interest to garner more funds from the depositors.
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FD in Axis Bank- Premature Withdrawal
The provision for premature withdrawal is subject to change from time to time and may also change as per the deposit scheme.
Premature closure of Term Deposit with Axis Bank is along with the lower interest rate of 1% than the contracted rate.
Loan Against Axis Bank Fixed Deposit
Axis Bank Grants loan up to 90% against fixed deposit. It is to be noted that, the bank does provide loans against a fixed deposit of any other bank.
The loan against fixed deposit is given at 4.5% to 8.6%
Maximum loan is restricted up to the maximum tenure of the fixed deposit
Let us understand it better with an illustration mentioned below
Illustration – Mr. Rahul has opened a fixed deposit of Rs. 100,000 for 2 years in Axis Bank. The borrower later decided to take a loan against his FD. The bank has approved a credit limit of 90% against his FD at a 10% interest rate.
Now, if the borrower draws Rs. 90,000 on the first of the month and then repays the money on the 1st of next month, then he is supposed to pay the interest on Rs. 90,000 availed for 1 month only. The amount he repays after 1 month is Rs. 90,744. So, the interest charged on the loan taken is Rs. 744.
Axis Bank FD Calculator
Axis Bank fixed deposit calculator is an easy tool that aids you to compute the maturity value of your deposited amount at the interest rate offered compounded at quarterly.
The number of fixed deposits, interest rates on FD, deposit tenure and compounding frequency of interest together determine the maturity amount of the FD at the end of the tenure.
Deposit amount – This is the initial amount that is deposited by a customer in Axis Bank.
Bank may permit a higher interest rate on larger deposits. Axis Bank proffers the deposit amount in the range of Rs. 10,000 to No Limit.
Rate of Interest – The Interest rate is the rate that is charged by the bank on your fixed deposit.
Axis Bank offers a lucrative rate of interest on fixed deposits of longer tenure and lowers interest rate on deposits of less than a year. The highest interest rate offered by Axis Bank is 7.60% for deposit amount below Rs. 1 crore corresponding to a deposit tenure of years months days to years months days.
Period of deposit – Bank offers low-interest-rate for short duration FDs and higher interest rate for long tenure FDs. Bank offers a rate of 3.50% for a 7 Days FD and a rate of 7.00% for a 10 Years FD.
Interest Compounding Frequency – This decides the frequency at which interest is compounded. Compounding frequency can be monthly, quarterly, half-yearly or annual frequency.
Let us understand this better with the help of an example.
Illustration:: Mr. A opens an FD account of Rs. 1 lakh with a tenure of 7 Days at an interest rate of 3.50 %. In this case, the maturity amount at the end of 7 Days will be Rs. 100,067 which includes the principal of Rs. 1 lakh and interest of Rs. 67 is earned on the principal amount during the period. Similarly, you can calculate the interest and maturity amount for higher tenures by using FD calculators.
Axis Bank calculates quarterly interest on its fixed deposits.
Axis Bank Fixed Deposit
Tax Saver Fixed Deposit
Description:
Under this scheme, the bank offers the flexibility to customer chooses between Single holder Type Deposits and Joint holder Type Deposits.
The interest rate on this scheme depends upon the category of the applicant applying under this deposit scheme.
- Option to choose between single or joint holder type deposits
- Nomination facility is made available to the depositors
- You can claim tax benefits on your deposit with a fixed deposit receipt issued by the bank
- It’s a good opportunity to save your taxes with this deposit and earn maximum benefit on your deposit
- Tax benefits on deposit under section 80C of Income Tax Act, 1961.
Who is eligible?
Resident Indians and Hindu undivided family.
Fixed Deposit Plus
Description:
Under this scheme, the customers will provide a higher rate of return on their fixed deposit? Investment as compared to regular term deposit rates.
- The depositor can earn a higher return on this deposit
- Nomination facility is available to the depositor.
- TDS facility also available on the deposit
- Option to choose your method of interest calculation
- Option to choose between deposit type under this scheme including short term deposit, reinvestment deposit and monthly and quarterly payout deposit.
Who is eligible?
Resident Indians, Hindu undivided family, sole proprietorship firms, partnership firms, limited companies, and trust.
Encash 24 Flexi Deposit
Description:
This deposit scheme offers two benefits of the liquidity of a savings account and high earnings of a fixed deposit.
- You can Avail of auto-renewal facility on the deposit
- Tax benefits on deposit under section 80C of Income Tax Act, 1961
- Customer Enjoy maximum liquidity on your investment
- Yield benefits with a shorter tenure period
- The fixed deposit account is linked to the existing savings account.
Who is eligible?
A savings account holder with valid PAN card details
Regular Fixed Deposit
Description:
Under this scheme, the depositor is permitted to make an investment into the existing deposit to get lucrative and higher returns along with a facility of flexibility and security.
- It provides the Convenience of opening a fixed deposit account with ease
- Nomination facility available
- Customers enjoy the benefit with a shorter minimum tenure
- You earn higher returns on the money deposited
- Also, you can avail the automatic rollover facility on your principal and interest both.
Who is eligible?
Resident Indians, Hindu undivided family, and sole proprietorship firms
Documents Needed to open a fixed deposit account with Axis Bank
- Passport and Driving License
- 2 Photographs
Frequently Asked Question on Axis Bank Fixed Deposit
Q. What is the highest rate provided by the axis bank?
The maximum interest grant by axis bank on fixed deposit is 7.60%
Q. Who is eligible to open a Fixed Deposit account with Axis Bank?
Hindu undivided family, all residents individuals, NRIs, firms including minors are also eligible to start FD with axis bank
Q. What are the implications of opening an FD bank account without having PAN?
Below listed are the implications for the customers opening an FD account
- TDS will be charged @20%s against 10% under section 206AA
- NO TDS credit from the Income Tax department
- NO TDS certificate will be issued
- Form 15G/H and other exemption certificates will be considered as invalid and penal TDS will apply
Is it possible to alter the tenure of my existing fixed deposit account with the axis bank?
No, you are not allowed as per the scheme policy to make changes in the tenure of fixed deposit once the account gets opened.
However, you may close the existing fixed deposit account and open a new fixed deposit account with the desired tenure.
Final Words
I hope you find the above post in the Axis Bank Fixed deposit of great help.
Any query, suggestion or doubts about Axis bank FD Interest rates are welcome.
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