Axis Bank

Axis Bank FD Features and Benefits

• Guaranteed Returns

• Higher Interest Rates

• Apt for Long-term Financial Goals

• Easy and Quick FD Account Opening Process

• Loan/Overdraft Facility Against FD

• Option of Tax-saving FD

Penalty on Premature Withdrawal

If you face any financial emergency, you can break your Axis Bank fixed deposit anytime. This is called premature withdrawal. The bank charges a penalty of 1% on the interest earned till the premature withdrawal date.

• Depending on your needs, you can withdraw partially or fully.

• Situations, where you can consider availing a premature withdrawal facility, include hospitalisation or a job loss.

• You can also use the premature withdrawal proceeds to pay off the debt.

How to Avoid Premature Withdrawal?

Loan/Overdraft Facility

• You can avoid premature withdrawal using a loan/overdraft facility against a fixed deposit.

• Get funds of up to 85% of the fixed deposit value.

• It's easy to access as it involves ZERO to the least documentation.

• The interest rate offered is 1-2% more than the fixed deposit interest rate.

Emergency Corpus

• Save from your salary each month for emergency needs that may arise.

• Park emergency fund in a savings bank account.

Axis Bank FD Rates vs Other Bank FD Rates

| Bank Name | FD Interest Rates (In p.a.) |
|-------------------|-----------------|
| North East Small Finance Bank | 4.75%-9.00% |
| Shivalik Small Finance Bank | 6.00%-8.55% |
| Suryoday Small Finance Bank | 8.05%-8.60% |
| Utkarsh Small Finance Bank | 8.00%-8.50% |
| South Indian Bank | 6.70%-7.40% |
| State Bank of India (SBI) | 3.50%-7.25% |
| HDFC Bank | 3.00%-7.40% |
| ICICI Bank | 3.00%-7.40% |
| Yes Bank | 3.25%-7.75% |
| Axis Bank | 3.00%-7.62% |
| Kotak Mahindra Bank | 2.75%-7.45% |
| IndusInd Bank | 3.50%-7.99% |
| HSBC Bank | 2.85%-7.50% |
| Punjab National Bank (PNB) | 3.50%-7.25% |
| Bank of Baroda (BoB) | 4.25%-7.88

Different Types of Axis FD Schemes

Digital Fixed Deposit

• You can begin your FD journey with an amount as low as INR 5,000.

• No savings bank account is needed to open this account.

• Open a KYC-compliant FD account within minutes.

• No penalty on 25% of the premature withdrawal amount (Only first instance)

Fixed Deposit Plus

• It's available for a minimum deposit value of INR 3 crore.

• Both corporate and retail customers can open this FD account.

• The tenure ranges from 7 days to 10 years.

Auto Fixed Deposit

• It is linked with a savings account.

• Once the savings account balance goes above INR 25,000, an FD will be opened in multiples of INR 5,000.

• The FD opens for a minimum and maximum tenure of six months and five years, respectively.

Tax Saver Fixed Deposit

• The scheme offers tax benefits on the investment amount.

• It offers tax deductions of up to INR 1.5 lakh in a financial year.

• The minimum investment amount required is INR 100 in a financial year.

• You can invest up to INR 1.5 lakh in a financial year.

• The FD runs for five years.

• Choose from interest reinvestment or payout at monthly or quarterly intervals.

Senior Citizen Fixed Deposit

• It's a special FD curated to meet the investment needs of senior citizens.

• The interest rate is 0.50% more compared to regular FDs.

• The minimum amount norms remain the same as regular FDs.

Term-wise Axis Bank Fixed Deposit Rates

Short-term Interest Rates - Axis Bank offers FD interest rates of 3.00%-7.80% per annum for one year.

Medium-term Interest Rates - The interest rate applicable for deposits above one year to five years is 6.70%-8.12% per annum.

Long-term Interest Rates - Fixed deposit interest rates for tenures above five years to up to ten years are 7.00% for regular customers and 7.75% for senior citizens.

How to Invest in Axis Bank FD?

You can invest in Axis Bank FD using any of the below channels.

Internet Banking

• Log in to Internet banking using your credentials.

• Choose the 'Deposit' option.

• Tap on 'Create Fixed Deposit'.

• Fill in the required amount and nominee details.

• Confirm the details

• Afterward, the amount will be debited from the savings bank account.

• The FD account will be created instantly, and you'll receive a web receipt of it.

• You will also receive an email about the FD advice.

Mobile Banking

• Log in to mobile banking and choose the 'Deposit' option.

• Choose the option - Open FD.

• Enter the investment amount and nominee details.

• Confirm the details

• Afterward, the amount will be debited from the savings bank account.

• You will also receive an email about the FD advice.

Offline Method

• Visit the nearest Axis Bank branch to open a fixed deposit (FD) account.

• Fill in the fixed deposit account opening form.

• Submit the FD amount cheque.

• Upon the successful realisation of the cheque, which can take a couple of working days, your Axis Bank fixed deposit will be opened.

Axis Bank Fixed Deposit Sweep-in

Axis Bank offers a sweep-in facility by which the excess balance in a savings account is transferred to a fixed deposit that earns you higher interest. The bank offers this facility with Auto Fixed Deposit. Here are a few striking features.

• Savings account balance above INR 25,000 is transferred to FDs in multiples of INR 5,000.

• It helps you earn fixed deposit interest income, which is higher than that of a conventional savings bank account.

• As the savings account balance falls below the threshold due to withdrawals, the FD money is transferred to the account, preventing you from potential fines that arise when failing to maintain the required balance.

Eligibility to Open an Axis Bank FD Account

Any of the following is eligible to open an Axis Bank fixed deposit account.

• Resident and Non-resident Individuals

• Hindu Undivided Families (HUFs)

• Proprietorship Firms

• Partnership Firms

• Companies

• Trusts & Associations

Tax on Axis Bank Fixed Deposit

Axis Bank Tax Saver Fixed Deposit helps you gain tax deductions of up to INR 1.5 lakh in a financial year as per Section 80C of the Income Tax Act, 1961. Here are some salient features.

• You can invest in it every financial year.

• The minimum deposit amount required is INR 100.

• The maximum investment allowed is INR 1.5 lakh.

• Tax benefits apply to the investment amount.

• The lock-in period is five years.

• Both interest reinvestment and interest payout options are available.

Interest earned on a tax-saver fixed deposit is taxable. As the interest earned in a financial year crosses INR 40,000 (regular customers) and INR 50,000 (senior citizens), banks deduct a 10% TDS or Tax Deducted at Source. If you don't submit the Permanent Account Number (PAN), the TDS can rise to 20%. However, if your overall income does not fall in the income tax bracket, you can submit Form 15G/H to avail of a TDS waiver. Your maturity amount will be higher by submitting the form.

Loan Against Axis Bank FD

Axis Bank offers a loan against a fixed deposit to meet your emergency cash needs. With this, you don't need to break an FD and face a premature withdrawal penalty that follows. The eligibility criteria for a loan are easy to meet. Here are the features of a loan against Axis Bank FD.

• Funds available up to 85% of the fixed deposit value.

• The loan is available for a minimum fixed deposit amount of INR 25,000.

• Only Axis Bank fixed deposits are considered for a loan.

• No prepayment charges on a loan.

• Interest charges on a loan are 1-2% above the fixed deposit rate.