Axis Bank FD Interest Rates: Tenure‑Wise Returns & Benefits

Key Takeaways
 

• • Axis Bank FD Interest Rates range across different tenures, offering secure returns for investors.
   
• Senior citizens receive 0.50% additional interest on all Axis Bank fixed deposits.
   
• Multiple Axis Bank FD schemes include tax-saver, digital, and auto fixed deposit options.

Axis Bank FD provides secure investment options with attractive Axis Bank FD interest rates. Fixed deposits offer guaranteed returns with flexible tenure choices available. Senior citizens receive additional interest benefits on their FD investments. 

The bank ensures simple account opening processes through multiple channels. Axis Bank FD remains a popular choice for risk-averse investors. For example, if you invest ₹1,00,000 for one year at 6.60% interest, you will receive approximately ₹6,600 as interest at maturity.

This blog explores Axis Bank FD interest rates and investment details.

Axis Bank FD Interest Rates

Axis Bank FD offers competitive interest rates for depositors:

Domestic Fixed Deposits:

General customers earn 6.25% p.a. on 1-year Axis Bank FDs and 6.60% p.a. on 18-month deposits for amounts below ₹3 crore. Senior citizens get 6.75% p.a. for 1-year FDs, and 7.10% p.a. for 18-month FDs under the same slab. The bank provides better returns for longer maturity periods, making Axis Bank FD Interest Rates attractive for various investors.

NRE Fixed Deposits:

Axis Bank FD rates for NRE accounts start at 6.25%. Higher deposit amounts fetch better interest rates. Longer tenures offer up to 6.60% interest. These Axis Bank FD Interest Rates help NRI investors secure steady returns.

Axis Bank FD provides attractive returns for all customer categories under different Axis Bank FD Interest Rates slabs.

Types of Axis Bank Fixed Deposit Schemes

Axis Bank FD offers various schemes to suit different financial needs:

Regular Fixed Deposits: Axis Bank FD provides standard deposit schemes for all customers. Investors park funds for fixed periods ranging from seven days. The interest rate offered is higher than regular savings accounts.

Tax-Saver Fixed Deposits: Axis Bank FD includes tax-saving options with five-year lock-in periods. Investors can claim deductions up to ₹1,50,000 annually. Pre-mature withdrawal leads to the reversal of all tax benefits claimed.

Digital Fixed Deposits: Axis Bank FD allows customers to open accounts online instantly. The entire process completes from KYC to deposit without documentation. Non-customers can also open digital FDs with PAN and Aadhaar.

Reinvestment Fixed Deposits: The bank reinvests interest back into the FD funds automatically. Investors earn interest on both principal and reinvested interest amounts. The entire amount gets paid only after the maturity period.

Senior Citizen Fixed Deposits: Senior citizens receive 0.75% higher interest on their fixed deposits. These dedicated schemes cater to investors aged 60 years and above. The tenure ranges from 7 days to 10 years maximum.

Fixed Deposit Plus: Higher investment amounts fetch better rewards and interest rates. Investors choose between simple interest and compound interest calculation methods. The minimum investment varies based on the chosen deposit type.

Auto Fixed Deposits: This scheme automatically transfers surplus funds into fixed deposit accounts. Investors set a threshold amount to remain in savings accounts. The rest goes into FD, earning higher interest rates automatically.

Axis Bank FD schemes provide flexible investment options for every investor.

Features and Benefits of Axis Bank FD

Axis Bank FD provides multiple advantages for secure and flexible investing:

Assured Return: Axis Bank FD guarantees fixed returns that are higher than regular savings accounts.

Solid Hedge: FDs act as a safe hedge against market volatility and help stabilise your portfolio.

Liquidity: You can withdraw up to 25% of your FD without penalty, offering quick access to cash.

Perfect Instrument to Park Your Funds: Short tenures starting from seven days help you earn interest on surplus funds like bonuses.

Flexibility: You can choose your preferred tenure and opt for monthly, quarterly, or annual interest payouts.

Axis Bank FD combines security, flexibility, and guaranteed returns for investors.

Comparison of Axis Bank FD Interest Rates with Other Banks

Axis Bank FD Interest rates remain competitive when compared with other leading banks:

Axis Bank FD interest rates offer stable returns across different tenure periods consistently.

Eligibility Criteria & Required Documents for Axis Bank FD Interest Rates

Axis Bank FD requires basic eligibility criteria and simple documentation from applicants:

• You must be an Indian resident with 18+ years of age.
• You are located in India while opening the account currently.
• You should have a valid PAN and Aadhaar card available.
• You are not an existing Axis Bank customer at present.

Axis Bank FD Interest Rates apply uniformly based on tenure and customer category.

Tax Implications on Axis Bank FD

Axis Bank FD interest income attracts tax under the Income Tax provisions:

Tax on FD Interest:

Axis Bank FD interest is taxable according to your income slab. Banks deduct TDS if interest exceeds ₹40,000 per year. Senior citizens have a higher TDS threshold of ₹50,000 annually. TDS rate is 10% with PAN or 20% without PAN.

Tax-Saving FD Benefits:

Axis Bank FD offers tax-saver schemes with five-year lock-in periods. Investors can claim deductions up to ₹1,50,000 yearly. These deductions fall under Section 80C of the Income Tax Act. However, the interest earned remains taxable despite claiming Section 80C.

Avoiding TDS:

Submit Form 15G if you are below 60 years old. Senior citizens above 60 years should submit Form 15H instead. These forms help avoid TDS if the total income stays below the limit.

Axis Bank FD holders must consider tax implications while planning their investments.

Axis Bank FD Premature Withdrawal & Closure Rules

Axis Bank FD allows early withdrawal with specific penalties and conditions:

Premature Withdrawal Rules:

Your fixed deposit comes with a specified maturity date. Urgent fund needs may arise before the maturity date arrives. 

Axis Bank FD allows account holders to withdraw funds early then. Account holders can withdraw partially or withdraw the entire amount. Withdrawing the entire amount shuts the deposit account altogether.

Penalty on Premature Withdrawal:

Axis Bank FD charges penalties on all premature withdrawal requests made. The penalty reduces the interest rate earned on deposits significantly. Banks deduct penalty charges from your total interest earnings always.

Axis Bank FD premature withdrawal provides emergency liquidity but reduces overall interest returns.

How to Invest in Axis Bank FD?

Axis Bank FD can be opened through online, mobile, or branch methods. The process is simple across all channels.

1. Open Axis Bank FD Online (Internet & Mobile Banking)

You can open an FD instantly through Internet Banking or Mobile Banking using just basic details.

Steps to open an FD online:

• Log in to Internet Banking or Mobile Banking and go to the Deposit section.
• Select Create/Open Fixed Deposit from the menu.
• Enter your deposit amount, tenure, and nominee details.
• The amount is debited from your savings account, and the FD is created immediately after confirmation.
• You receive an online receipt instantly, and the FD advice is sent to your registered email. It can also be downloaded anytime from your online banking dashboard.

This process offers a fast and paperless way to benefit from Axis Bank FD Interest Rates.

2. Open Axis Bank FD at a Branch

You can visit the nearest Axis Bank branch to open an FD in person. Bank staff will help you fill out the form, submit documents, and complete the deposit procedure.

This is helpful for customers who prefer offline assistance or need guidance.

Conclusion

Axis Bank FD offers competitive interest rates with flexible tenure options for investors. The bank provides various schemes, including tax-saver and senior citizen deposits. Axis Bank FD combines security, liquidity, and guaranteed returns for all customer categories.

Bonus Tip: RBI’s recent repo rate cut is prompting banks to lower FD rates. Lock your FD now to secure the current higher Axis Bank FD interest rates before they drop. 

FAQs

Q1. Can I choose auto-renewal when my Axis Bank FD matures?
Yes. You can opt for auto-renewal. If you set standing instructions, the FD will automatically renew for the same tenure at the then-prevailing rate.

Q2. Does Axis Bank allow a sweep-in (auto-FD) facility for excess savings balance?
Yes, through the Auto/ Sweep-in FD feature, any amount beyond a threshold in your Savings Account automatically moves into an FD, helping you earn higher interest while keeping liquidity.

Q3. Can I open multiple FDs with different tenures or payout options under Axis Bank?
Yes. You can open several FDs under your name, each with its own tenure and interest payout option (monthly, quarterly, annual, or cumulative), depending on your income and liquidity needs.

Q4. What happens if I don’t withdraw or renew my FD after maturity?
If you don’t claim or renew your FD at maturity and haven’t opted for auto-renewal, the interest and principal will typically be transferred to your linked savings account (or as per the bank’s FD-maturity policy). 
 

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