Latest Axis Bank FD Interest Rate April 2023
Axis Bank FD rates currently range from 3.50% to 7.26% for normal depositors, and up to 8.01% for senior citizen depositors. These Axis Bank FD interest rates are available on normal FDs for deposits below ₹2 crore.
Fixed Deposits are safe and secure investment options and the minimum amount required to open an Axis Bank FD is ₹5,000 only. The online account opening facility offered by Axis Bank makes it possible for an individual to open an FD account from anywhere and at any time. The maturity period of Axis Bank FDs can be 7 days to 10 years, and senior citizens usually get preferential rates over the normal FD rates.
You can choose from various types of FD accounts based on your requirement. Check the Axis Bank FD interest rates effective from April 4, 2023, after formulating your financial goals and invest accordingly.
Axis Bank FD Interest Rates 2023 Highlights
The following table provides the highlights of Axis Bank FDs:
| Interest Rate | 3.50% to 8.01% |
| Tenure | 7 days to 10 years |
| Minimum Deposit | ₹5,000 (in case of mobile/internet banking)₹10,000 (in case you visit a bank branch) |
| Maximum Deposit | No Upper Limit |
| Lock-in Period | Tax Saver FDs: 5 Years Fixed Deposit Plus: As per maturity between 30 days to 10 years |
How to Calculate Axis Bank FD Interest Rates?
You can calculate bank FD interest rates by two methods—simple interest method and compound interest method. The interest that you earn on your principal investment amount at a fixed interest rate during the tenure, is known as simple interest.
Here is the formula for manually calculating simple interest:
Simple Interest = (P * R * T) / 100
Where,
- P = Principal amount you have invested
- R = Rate of interest (%)
- T = Tenure (in years)
Let us use an example to understand this better. Suppose, you have invested ₹2 lakh for a tenure of 10 years at an interest rate of 7%. Here P = ₹2 lakh, R = 7% and T = 10 years
Simple Interest = (₹2,00,000 * 7 * 10) / 100 = ₹1,40,000
Maturity Amount = Principal Amount + Simple Interest = ₹2,00,000 + ₹1,40,000
As you can see, you will receive the total amount of ₹3,40,000 after your FD’s maturity with the simple interest method.
Compound interest is another method you can use to calculate your FD maturity amount. In simple words, compound interest is described as interest earned on interest. The interest earned from an investment gets added to the principal amount at fixed intervals, which generates more interest income. As the cycle continues, you will earn a substantial amount.
The formula for compound interest calculation is as follows:
A = P (1+r/n) ^ (n * t)
Where,
- A = Maturity amount
- P = Principal amount
- r = Interest rate (in decimals)
- n = Number of compounding in a year
- t = Total number of years you have invested
Suppose you have invested ₹2 lakh for 10 years at an interest rate of 7% per annum compounded quarterly.
So,
P = ₹2,00,000
t = 10 years
Interest rate = 7% per annum
The number of compounding in a year is 4, i.e. 1 in every quarter.
So,
A = ₹2,00,000*(1+0.07/4)^(4*10)
= ₹4,00,023
Interest Amount = ₹4,00,023 – ₹2,00,000
= ₹2,00,023
As you can see, the compound interest leads to ₹60,023 more profits than the simple interest even though the principal amount, tenure and interest rate remained the same. Hence, we can say that the compounding of interest leads to much higher returns over time.
However, if you find these calculations too hectic, you can use an online FD interest rate calculator. This online financial tool is easy-to-use and can help you save time by displaying accurate results instantly.
Factors that Affect Axis Bank Fixed Deposit Rates
Given below are some of the essential factors affecting Axis Bank fixed deposit interest rates:
1. Tenure
Fixed deposits with shorter tenures come with lower interest rates. But, higher interest rates are offered for longer tenures. If you don’t need some of your funds immediately, open an FD account and lock your funds for a longer period to get better returns.
2. Deposit Amount
At Axis Bank, interest rates vary depending on the type of FD account. For example, Axis FD interest rates are higher for ‘Fixed Deposit Plus’ accounts which provide the benefit of secured and higher returns on deposits amounting to more than ₹2 crore. These are FD accounts where you cannot make premature withdrawals.
3. Depositor’s age
Usually, people who are above 60 years of age receive the benefit of higher interest rates on their fixed deposits compared to regular depositors.
4. RBI’s repo rate
The Reserve Bank of India’s repo rate is the interest rate at which it lends money to commercial banks. When the repo rate is increased, commercial banks typically raise their lending rates, including the fixed deposit interest rates they offer to customers. Conversely, when the repo rate is lowered, fixed deposit interest rates may also decrease.
5. Renewals
If you choose the auto-renewal facility, you can earn higher interest rates if the applicable fixed deposit rates are higher at the time of renewal.
Axis Bank FD Interest Rate for General Public
Axis Bank offers different interest rates for fixed deposits depending on the tenure and depositor’s age. The deposit amount can be broadly classified as ‘below ₹2 crore’ and ‘above ₹2 crore’. If you open a fixed deposit account with Axis Bank for an amount below ₹2 crore, the interest rates range from 3.50% to 7.80% depending on the tenure as of April 4, 2023. Check the table below for more details:
| Tenure | Interest Rates on Fixed Deposits Below ₹2 Crore | Interest Rates on Fixed Deposits Above ₹2 Crore* |
| 7 Days to 14 Days | 3.50% | 4.75% to 5.75% |
| 15 Days to 29 Days | 3.50% | 4.75% to 5.75% |
| 30 Days to 45 Days | 3.50% | 4.75% to 5.75% |
| 46 Days to 60 Days | 4.00% | 4.75% to 6.00% |
| 61 Days < 3 Months | 4.50% | 4.75% to 6.25% |
| 3 Months < 4 Months | 4.75% | 4.75% to 7.15% |
| 4 Months < 5 Months | 4.75% | 4.75% to 7.15% |
| 5 Months < 6 Months | 4.75% | 4.75% to 7.15% |
| 6 Months < 7 Months | 5.75% | 4.75% to 7.25% |
| 7 Months < 8 Months | 5.75% | 4.75% to 7.25% |
| 8 Months < 9 Months | 5.75% | 4.75% to 7.25% |
| 9 Months < 10 Months | 6.00% | 5.00% to 7.50% |
| 10 Months < 11 Months | 6.00% | 5.00% to 7.50% |
| 11 Months to 11 Months 24 Days | 6.00% | 5.00% to 7.50% |
| 11 Months 25 Days < 1 Year | 6.00% | 5.00% to 7.50% |
| 1 Year to 1 Year 4 Days | 6.75% | 5.00% to 7.80% |
| 1 Year 5 Days to 1 Year 10 Days | 6.75% | 5.00% to 7.80% |
| 1 Year 11 Days to 1 Year 24 Days | 6.75% | 5.00% to 7.80% |
| 1 Year 25 Days < 13 Months | 7.10% | 5.00% to 7.80% |
| 13 Months < 14 Months | 7.15% | 5.00% to 7.80% |
| 14 Months < 15 Months | 7.15% | 5.00% to 7.80% |
| 15 Months < 16 Months | 7.15% | 5.00% to 7.45% |
| 16 Months < 17 Months | 7.15% | 5.00% to 7.45% |
| 17 Months < 18 Months | 7.15% | 5.00% to 7.45% |
| 18 Months < 2 Years | 7.15% | 5.00% to 7.45% |
| 2 Years < 30 Months | 7.26% | 5.00% to 7.30% |
| 30 Months < 3 Years | 7.00% | 5.00% to 7.30% |
| 3 Years < 5 Years | 7.00% | 5.00% to 7.25% |
| 5 Years to 10 Years | 7.00% | 5.00% to 7.25% |
Also Read
Axis Bank FD Interest Rate for Senior Citizens
Senior citizens can get a higher interest rate at Axis Banks on their fixed deposits. The following table mentions the latest Axis Bank senior citizen FD rates:
| Tenure | Interest Rates on Fixed Deposits Below ₹2 Crore | Interest Rates on Fixed Deposits Above ₹2 Crore |
| 7 Days to 14 Days | 3.50% | 4.75% to 5.75% |
| 15 Days to 29 Days | 3.50% | 4.75% to 5.75% |
| 30 Days to 45 Days | 3.50% | 4.75% to 5.75% |
| 46 Days to 60 Days | 4.00% | 4.75% to 6.00% |
| 61 Days < 3 Months | 4.50% | 4.75% to 6.25% |
| 3 Months < 4 Months | 4.75% | 4.75% to 7.15% |
| 4 Months < 5 Months | 4.75% | 4.75% to 7.15% |
| 5 Months < 6 Months | 4.75% | 4.75% to 7.15% |
| 6 Months < 7 Months | 6.00% | 5.00% to 7.25% |
| 7 Months < 8 Months | 6.00% | 5.00% to 7.25% |
| 8 Months < 9 Months | 6.00% | 5.00% to 7.25% |
| 9 Months < 10 Months | 6.25% | 5.25% to 7.25% |
| 10 Months < 11 Months | 6.25% | 5.25% to 7.25% |
| 11 Months to 11 Months 24 Days | 6.25% | 5.25% to 7.50% |
| 11 Months 25 Days < 1 Year | 6.25% | 5.25% to 7.50% |
| 1 Year to 1 Year 4 Days | 7.50% | 5.75% to 8.15% |
| 1 Year 5 Days to 1 Year 10 Days | 7.50% | 5.75% to 8.15% |
| 1 Year 11 Days to 1 Year 24 Days | 7.50% | 5.75% to 8.15% |
| 1 Year 25 Days < 13 Months | 7.85% | 5.75% to 8.15% |
| 13 Months < 14 Months | 7.90% | 5.75% to 8.15% |
| 14 Months < 15 Months | 7.90% | 5.75% to 8.15% |
| 15 Months < 16 Months | 7.90% | 5.75% to 8.00% |
| 16 Months < 17 Months | 7.90% | 5.75% to 8.00% |
| 17 Months < 18 Months | 7.90% | 5.75% to 8.00% |
| 18 Months < 2 Years | 7.90% | 5.75% to 8.00% |
| 2 Years < 30 Months | 8.01% | 5.75% to 7.75% |
| 30 Months < 3 Years | 7.75% | 5.75% to 7.75% |
| 3 Years < 5 Years | 7.75% | 5.75% to 7.75% |
| 5 Years to 10 Years | 7.75% | 5.75% to 7.75% |
Axis Bank FD Interest Rate for NRIs
Axis Bank offers various types of fixed deposit products for Non-Resident Indians (NRIs). Anyone who is an NRI can deposit their money in these accounts. Listed below are the various types of NRI FD accounts offered by Axis Bank:
- NRE Fixed Deposit Account
- NRO Fixed Deposit Account
- RFC Fixed Deposit Account
- FCNR Fixed Deposit Account
1. Axis Bank NRE FD Interest Rate
Non-Resident External (NRE) is a fixed deposit account that enables non-resident individuals to deposit their money earned overseas in an Indian bank. The table below shows the Axis Bank NRE FD interest rates as of April 2023:
| Tenure | Interest on Deposits Below ₹2 Crore | Interest on Deposits Above ₹2 Crore |
| 1 year to 1 year 4 days | 6.75% | 5.00% to 7.40% |
| 1 Year 5 Days to 1 Year 10 Days | 6.75% | 5.00% to 7.40% |
| 1 Year 11 Days to 1 Year 24 Days | 6.75% | 5.00% to 7.40% |
| 1 Year 25 Days < 13 Months | 7.10% | 5.00% to 7.40% |
| 13 Months < 14 Months | 7.15% | 5.00% to 7.40% |
| 14 Months < 15 Months | 7.15% | 5.00% to 7.40% |
| 15 Months < 16 Months | 7.15% | 5.00% to 7.25% |
| 16 Months < 17 Months | 7.15% | 5.00% to 7.25% |
| 17 Months < 18 Months | 7.15% | 5.00% to 7.25% |
| 18 Months < 2 Years | 7.15% | 5.00% to 7.25% |
| 2 Years < 30 Months | 7.26% | 5.00% to 7.00% |
| 30 Months < 3 Years | 7.00% | 5.00% to 7.00% |
| 3 Years < 5 Years | 7.00% | 5.00% to 7.00% |
| 5 Years to 10 Years | 7.00% | 5.00% to 7.00% |
2. Axis Bank NRO FD Interest Rate
Non-Resident Ordinary (NRO) is a bank account that allows Non-Resident Indians to deposit and manage their income earned in India when they are in foreign countries. Check the table for the latest FD rates from Axis Bank on NRO accounts:
| Tenure | Interest Rates on Fixed Deposits Below ₹2 Crore | Interest Rates on Fixed Deposits Above ₹2 Crore |
| 7 Days to 14 Days | 3.50% | 4.75% to 4.80% |
| 15 Days to 29 Days | 3.50% | 4.75% to 5.00% |
| 30 Days to 45 Days | 3.50% | 4.75% to 5.50% |
| 46 Days to 60 Days | 4.00% | 4.75% to 6.00% |
| 61 Days < 3 Months | 4.50% | 4.75% to 6.25% |
| 3 Months < 4 Months | 4.75% | 4.75% to 6.50% |
| 4 Months < 5 Months | 4.75% | 4.75% to 6.50% |
| 5 Months < 6 Months | 4.75% | 4.75% to 6.50% |
| 6 Months < 7 Months | 5.75% | 4.75% to 6.65% |
| 7 Months < 8 Months | 5.75% | 4.75% to 6.65% |
| 8 Months < 9 Months | 5.75% | 4.75% to 6.65% |
| 9 Months < 10 Months | 6.00% | 5.00% to 6.75% |
| 10 Months < 11 Months | 6.00% | 5.00% to 6.75% |
| 11 Months to 11 Months 24 Days | 6.00% | 5.00% to 6.75% |
| 11 Months 25 Days < 1 Year | 6.00% | 5.00% to 6.75% |
| 1 Year to 1 Year 4 Days | 6.75% | 5.00% to 7.25% |
| 1 Year 5 Days to 1 Year 10 Days | 6.75% | 5.00% to 7.25% |
| 1 Year 11 Days to 1 Year 24 Days | 6.75% | 5.00% to 7.25% |
| 1 Year 25 Days < 13 Months | 7.10% | 5.00% to 7.25% |
| 13 Months < 14 Months | 7.15% | 5.00% to 7.25% |
| 14 Months < 15 Months | 7.15% | 5.00% to 7.25% |
| 15 Months < 16 Months | 7.15% | 5.00% to 7.15% |
| 16 Months < 17 Months | 7.15% | 5.00% to 7.15% |
| 17 Months < 18 Months | 7.15% | 5.00% to 7.15% |
| 18 Months < 2 Years | 7.15% | 5.00% to 7.15% |
| 2 Years < 30 Months | 7.26% | 5.00% to 7.00% |
| 30 Months < 3 Years | 7.00% | 5.00% to 7.00% |
| 3 Years < 5 Years | 7.00% | 5.00% to 7.00% |
| 5 Years to 10 Years | 7.00% | 5.00% to 7.00% |
*Data taken from the bank website on April 6, 2023.
3. Axis Bank RFC Rates
Axis Bank offers Resident Foreign Currency (RFC) accounts for those NRIs who have been living in India continuously for more than 12 months. RFC Term Deposits enable people to receive high returns on their foreign currency deposits. The interest amount earned on this FD account is entirely repatriable. Moreover, there is no foreign exchange conversion risk.
Check the table below for the Axis Bank RFC rates:
| Tenure | Currency | ||||
| USD | GBP | EURO | AUD | CAD | |
| 30 Days to less than 3 months | 0.15% | 0.15% | 0.01% | 0.30% | 0.35% |
| 3 months to less than 6 months | 0.25% | 0.15% | 0.01% | 0.30% | 0.35% |
| 6 months to Less than 12 months | 0.30% | 0.15% | 0.01% | 0.30% | 0.35% |
| More than 12 months, but less than 2 years | 5.50% | 4.00% | 2.90% | 3.70% | 4.20% |
| 2 years and above, but less than 3 years | 4.50% | 3.75% | 0.01% | 3.75% | 3.50% |
| 3 years and above, but less than 4 years | 4.20% | 2.45% | 0.01% | 3.80% | 3.45% |
| 4 years and above, but less than 5 years | 3.85% | 2.45% | 0.01% | 4.00% | 3.35% |
| For 5 years only | 3.80% | 2.45% | 0.01% | 4.05% | 3.30% |
4. Axis Bank FCNR Interest Rates
Axis Bank offers Foreign Currency Non-Resident (FCNR) fixed deposit accounts. NRIs can receive assured returns on their fixed deposits in any of the 6 currencies that they’ll choose. Check the table below for the applicable interest rates:
| Tenure | Currency | |||||
| USD | GBP | EUR | AUD | CAD | JPY | |
| 1 year and above but less than 2 years | 5.50% | 4.00% | 2.90% | 3.70% | 4.20% | 0.01% |
| 2 years and above but less than 3 years | 4.50% | 3.75% | 0.01% | 3.75% | 3.50% | 0.01% |
| 3 years and above but less than 4 years | 4.20% | 2.45% | 0.01% | 3.80% | 3.45% | 0.01% |
| 4 years and above but less than 5 years | 3.85% | 2.45% | 0.01% | 4.00% | 3.35% | 0.01% |
| For 5 years only | 3.80% | 2.45% | 0.01% | 4.05% | 3.30% | 0.01% |
Axis Bank VS Other Banks’ FD Interest Rate
We have presented the tenure and interest rates for FD accounts of leading banks in India. Please note that the upper limit of the interest rate takes into account FDs for senior citizens. While deposits below ₹2 crore have been considered as the lower deposit limit, no upper limit has been considered as many banks don’t specify the highest deposit amount.
| Bank Name | Tenure | Interest Rates |
| Axis Bank Fixed Deposit | 7 Days to 10 Years | 3.50% to 8.40% |
| SBI Fixed Deposit | 7 Days to 10 Years | 3.00% to 7.50% |
| ICICI Fixed Deposit | 7 Days to 10 Years | 3.00% to 7.40% |
| HDFC Fixed Deposit | 7 Days to 10 Years | 3.00% to 7.30% |
| Bank of Baroda Fixed Deposit | 7 Days to 10 Years | 3.00% to 7.70% |
| IndusInd Fixed Deposit | 7 Days to 5 Years and Above | 3.50% to 8.25% |
| Bank of India Fixed Deposit | 7 Days to 10 Years | 3.00% to 7.80% |
| Kotak Bank Fixed Deposit | 7 Days to 10 Years | 2.75% to 7.70% |
| IDFC Bank Fixed Deposit | 7 Days to 10 Years | 3.50% to 8.25% |
| Yes Bank Fixed Deposit | 7 Days to 10 Years | 3.25% to 8.00% |
| Bandhan Bank Fixed Deposit | 7 Days to 10 Years | 3.00% to 8.50% |
| Post Office Fixed Deposit/Time Deposit | 1 Year to 5 Years | 6.8% to 7.5% |
| Paytm Payments Bank Fixed Deposit | 7 days to 1 year | 2.75% to 5.5% |
| Deutsche Bank Fixed Deposit | 7 Days to 5 Years | 3% to 7.75% |
| Karnataka Bank Fixed Deposit | 7 Days to 10 Years | 4.5% to 7.80% |
| Central Bank of India Fixed Deposit | 7 Days to 10 Years | 4% to 7.25% |
| HSBC Fixed Deposit | 7 Days to 5 Years | 2.85% to 8% |
| RBL Bank Fixed Deposit | 7 Days to 20 Years | 3.50% to 8.30% |
| Indian Bank Fixed Deposit | 7 Days to 5 Years+ | 2.80% to 6.70% |
| Sundaram Finance Fixed Deposit | 12 months to 36 months | 7.45% to 8.25% |
| Federal Bank Fixed Deposit | 7 days to 10 years | 3.00% to 8% |
| CitiBank Fixed Deposit | 7 Days to 10 Years | 3.5% to 7.26% |
| Punjab National Bank Fixed Deposit | 7 Days to 10 Years | 3.50% to 8.05% |
| Union Bank of India Fixed Deposit | 7 Days to 10 Years | 3% to 7.8% (0.5% higher for senior citizens) |
| IDBI Bank Fixed Deposit | 7 Days to 20 Years | 3% to 7.25% |
Also Read
Features and Benefits of Axis Bank FD
Listed below are some of the features and benefits of Axis Bank FDs:
The minimum deposit period is 7 days.
The minimum deposit amount is ₹5,000 if you open an FD account via mobile App or internet banking. However, there’s no upper limit to the FD amount.
If you wish to open an FD account after visiting the nearest Axis Bank branch, you would need ₹10,000 only.
Suppose, you have opened a Rupee Term Deposit (TD) of a contracted amount less than ₹5 crore and for a tenure greater than 2 years. In this case, a premature withdrawal penalty is not applicable if the account is closed within 15 months of renewal/booking.
Term deposits eligible for premature withdrawal penalty waiver include TDs renewed or opened on/after December 15, 2020, domestic and NRO deposits and TDs closed for the contracted amount.
The Axis Bank FD rate will be 1% below the card rate for Rupee Term Deposits of a contracted amount less than ₹5 crore. But, the account must have been opened on or after May 1, 2014.
Interests will not be applicable for those Rupee Term Deposits which close within 7 days from the date of booking. When Rupee Term Deposits close within 7 – 14 days from the date the deposit was booked, the interest rate will be the same as that of the total number of days the deposit has remained with the bank.
Different Types of FD Schemes Offered By Axis Bank?
Axis Bank offers various types of FD accounts for both resident and non-resident Indians. Each of the FD accounts has its distinct features and benefits. Listed below are the FD schemes offered by Axis Bank:
- Regular Fixed Deposits
- Tax-Saver Fixed Deposits
- Digital Fixed Deposits
- Senior Citizen Fixed Deposits
- Fixed Deposit Plus
- Auto Fixed Deposits
1. Regular Fixed Deposits
- Minimum Deposit: ₹5,000
- Maximum Deposit: No upper limit
- Tenure: 7 days to 10 years
- Interest Rate: 3.50% to 7.65%
- Eligibility Criteria: Indian resident
2. Tax-Saver Fixed Deposits
- Minimum Deposit: ₹100
- Maximum Deposit: ₹1,50,000 in a financial year
- Tenure: 5 years
- Interest Rate: 3.50% to 7.65%
- Eligibility Criteria: Resident and Hindu Undivided Families (HUF)
3. Digital Fixed Deposits
- Minimum Deposit: ₹5,000
- Maximum Deposit: No upper limit
- Tenure: 7 days to 10 years
- Interest Rate: 3.50% to 7.65%
- Eligibility Criteria: Resident of India
4. Senior Citizen Fixed Deposits
- Minimum Deposit: ₹5000
- Maximum Deposit: No upper limit
- Tenure: 7 days to 10 years
- Interest Rate: 3.50% to 8.40%
- Eligibility Criteria: Resident Indians above 60 Years
5. Fixed Deposit Plus
- Minimum Deposit: ₹2,00,00,000
- Maximum Deposit: No upper limit
- Tenure: 30 days to 10 years
- Interest Rate: 5.50% to 7.80%
- Eligibility Criteria: Resident Indians, HUFs, partnership firms, sole proprietorship firms, limited companies, trusts
6. Auto Fixed Deposits
- Minimum Deposit: ₹5,000
- Maximum Deposit: No upper limit
- Tenure: 6 months to 5 years
- Interest Rate: 3.50% to 7.65%
- Eligibility Criteria: You have to be an existing Savings Account holder with Axis Bank
How to Invest in Axis Bank Fixed Deposit?
Follow these steps to open an FD account with Axis Bank:
- Step 1: Visit the Axis Bank internet banking webpage and log in with your credentials.
- Step 2: Click on the ‘Create Fixed Deposit’ button.
- Step 3: You’ll be redirected to a page where you need to fill up the required personal, bank account and nominee details.
- Step 4: You’ll have to press the ‘Confirm’ button after which the amount will be deducted from your Savings Account.
Alternatively, you can log in with your mobile banking app or visit a bank branch to open a fixed deposit.
Documents Required to Open Axis Bank FD
Listed below are the documents required to open an Axis Bank FD by various entities.
1. Individuals/HUFs/Sole Proprietorship Firms
Here are the documents that these entities would require:
- A valid driving licence or a passport
- Introduction by an Axis Bank Savings Account holder or a different bank
- A photograph
2. Trusts
Here’s the list of the documents that a trust would require to open an FD:
- Copy of the Trust Deed
- Copy of the Resolution of Trustees
- Photographs of the members who’ll operate the FD
- Copy of the Registration Certificate
Eligibility to Open Axis Bank FD
Listed below are the entities or individuals eligible to open a fixed deposit account with Axis Bank:
- Resident Indians
- Hindu Undivided Families
- Sole proprietorship firms
- Partnership firms
- Trust accounts
- Limited companies
Taxation on Axis Bank FD
Go through the details of taxation of FDs opened with Axis Bank:
- The interest that you earn on your Axis Bank FDs is taxable under the ‘other sources’ category and the applicable tax rate depends on your income tax slab.
- The bank is responsible for deducting tax at source while interest gets credited to your account. If you submit details of PAN, then the TDS rate will be 10%. Otherwise, the TDS rate will be 20%. Surcharge or cess is not levied above this rate.
- As per Section 80C of the Income Tax Act, you can claim a tax deduction for up to ₹1.5 lakh from your gross total income, if you invest in a tax-saver FD. The total interest amount that is projected on the aggregate of your bank FD for a particular financial year will determine the TDS amount that’ll be deducted.
Loan against Axis Bank Fixed Deposit Scheme
When you are faced with financial emergencies, you can avail of a loan against your FDs instead of liquidation. You will not have to lose out on interest. Moreover, you don’t have to pay any penalty charge for breaking your fixed deposit which is an important benefit.
Check the important points below:
- Get up to 85% of the value of your Axis Bank FD.
- The minimum limit of this credit facility is ₹25,000.
- You will have to pay interest only for the actual amount used and for the period of utilisation. Post-dated cheques or EMIs will not be required.
- Moreover, the processing fee and prepayment charge are zero.
Final Word
Before you open an FD account, check the various interest rates that are on offer. Axis Bank FD rates are some of the highest rates being offered in the country right now. However, make sure the tenure of the FD is aligned with your financial goals because it will allow easy liquidity at a time when you need it the most.
FAQs
The minimum deposit amount varies from one bank to another. At Axis Bank, you can open an FD scheme with ₹5,000 if done through internet/mobile banking. If you’re visiting the bank branch, then the minimum amount required is ₹10,000.
Yes, an FD scheme can be opened jointly in the name of a minor and an adult. While FD for a minor is usually made between parents and children, sometimes grandparents can open joint FD schemes with minors as well.
FDs are safe and secure investment schemes where the process of investment is easy and hassle-free. Depending on your fund requirement, you can opt for monthly or quarterly payouts.
Yes, you can make premature withdrawals from an FD scheme. But there is an exception. No premature withdrawals can be made from ‘Fixed Deposit Plus’ accounts. The interest rate will be 1% below the prevailing card rate as of the date of deposit or 1% below the contracted rate.
No, you can open a Digital Fixed Deposit account even if you don’t have an Axis Bank Savings account. To deposit money into the Digital Fixed Deposit scheme, you can use a savings account with any bank.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
