Are Axis Bank's FD Interest Rates Competitive in 2024?
Apr 16, 2024
6 MinsAxis Bank Limited, based in Mumbai, Maharashtra, stands as India's third-largest private sector bank, offering a wide range of banking services.
This bank provides comprehensive financial solutions including retail banking services like deposits and loans, corporate services such as Demat accounts, equity capital markets, mutual fund investments, and international banking facilities.
Axis Bank features multiple fixed deposit schemes allowing customers to lock a portion of their savings for fixed terms, ensuring safety and interest income.
The competitive interest rates on Axis Bank Fixed Deposits provide substantial returns, offering a secure future for savers.
Upon account initiation, customers need to deposit a minimum amount, and withdrawals are restricted until the maturity date, ensuring funds are dedicated for the term specified.
Key Features of Axis Bank Fixed Deposits
- Higher Interest Rates for Senior Citizens: Senior citizens are offered enhanced interest rates compared to standard customers.
- Nomination Facility: Axis Bank offers a nomination option for these deposits.
- Initial Deposit Requirement: A minimum of Rs. 5,000 is required to start a fixed deposit account.
- Competitive Short-term Rates: Substantial interest rates are available for shorter tenures.
- Easy Account Setup: Establishing a fixed deposit with Axis Bank is simple and convenient.
- Loan Against FD: Loans up to 90% of the deposit value can be availed.
- Diverse FD Schemes: A wide range of fixed deposit schemes is on offer.
Axis Bank FD Interest Rates 2024
| Tenure | Interest Rates (PA) | Rates for Seniors (PA) |
|---|---|---|
| 7 days - 29 days | 3% | 3.5% |
| 1 month - 1 month 15 days | 3.5% | 4% |
| 1 month 16 days - 1 month 30 days | 4.25% | 4.75% |
| 2 months - 2 months 29 days | 4.5% | 5% |
| 3 months - 5 months 26 days | 4.75% | 5.25% |
| 5 months 27 days - 8 months 29 days | 5.75% | 6.25% |
| 8 months 30 days - 11 months 30 days | 6% | 6.5% |
| 1 year - 1 year 2 months 29 days | 6.7% | 7.2% |
| 1 year 3 months - 1 year 4 months 29 days | 7.1% | 7.6% |
| 1 year 4 months 30 days - 1 year 5 months 29 days | 7.2% | 7.85% |
| 1 year 6 months - 4 years 11 months 29 days | 7.1% | 7.6% |
| 4 years 11 months 30 days - 9 years 11 months 29 days | 7% | 7.75% |
Types of Axis Bank FD Schemes
Banks offer two main types of fixed deposits: cumulative and non-cumulative. Cumulative FDs gather interest payable at maturity, while non-cumulative FDs pay interest periodically, often quarterly; monthly payments are also available but at slightly reduced rates. Cumulative deposits are compounded quarterly.
Here are the Axis Bank FD options:
Standard Fixed Deposits:
- Deposit for specified duration with predefined interest rates.
- Term ranges from 7 days to 10 years, often yielding more than a savings account.
Tax Saving Fixed Deposits:
- Offer tax benefits under Section 80C, allowing exemptions up to Rs. 1.5 lakh per annum.
- 5-year lock-in with no premature withdrawals, only lump sum accepted.
Special Term Deposits:
- Similar to standard FDs, but with higher rates for not withdrawing early.
Fixed Deposits for Regular Income:
- Designed for regular payouts, offering interest monthly or quarterly.
Senior Citizen Fixed Deposits:
- Tailored for those 60 and above, offering additional interest over standard rates with flexible tenures.
Flexible Fixed Deposits (Flexi FDs):
- Linked to savings accounts allowing automatic transfers of surplus funds to the FD.
Corporate and Alternative Fixed Deposits:
- Invested in companies or NBFCs with potentially higher but unsecured returns.
Fixed Deposits for NRIs:
- NRE FDs: Tax-free interest and full repatriability on foreign earnings.
- NRO FDs: Manage Indian income taxed but fully repatriable within limits.
Long-term & Short-term Fixed Deposits:
- Long-term FDs: Spanning 5 to 10 years, typically providing higher returns.
- Short-term FDs: Duration from 7 days to 2 years, suited to immediate needs.
Opening an Axis Bank Fixed Deposit
There are different ways to open an Axis Bank FD, including online via Internet Banking or visiting a branch.
1) Online via Internet Banking:
- Log in to Internet Banking and choose 'Create Fixed Deposit'.
- Fill in details and nominate a beneficiary.
- Upon confirmation, funds are transferred, and a web receipt is issued. FD advice is later emailed or mailed, downloadable via Internet Banking after one business day.
2) In-Person at a Branch:
- Visit an Axis Bank branch and complete an FD application.
- Submit necessary documents and deposit required funds.
- Receive an FD receipt upon successful processing.
Who Can Open a Fixed Deposit Account?
Eligible entities include:
- Resident individuals, minors included.
- Senior and super senior citizens.
- Hindu Undivided Families (HUF).
- Sole proprietors, partnership firms, joint-stock companies, and trusts.
Documents Required
- Identity proof with KYC documents such as Aadhaar, driver’s license, or voter ID.
- PAN card, per Indian Income Tax Department.
- Address proof, verifiable via KYC documents, passport, or utility bills.
Early Withdrawal Terms
Early withdrawal from an Axis Bank FD incurs a 1% penalty. A penalty-free partial withdrawal of up to 25% of the principal is permissible on the first withdrawal.
Team Pluto
