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Axis Bank Recurring Deposit (RD) Interest Rates

Axis bank provides the facility of opening a Recurring Deposit and earning profits on the deposited money in the form of interest. An Axis Bank recurring deposit account can be opened for tenures ranging from 6 months to 120 months (10 years). The Axis bank rd interest rates range from 4.40% p.a. to 6.50% p.a. Senior citizens are entitled to get a 0.50% extra interest over the regular ones.

Axis Bank RD Interest Rates 2022

Tenure General Interest rates (p.a.) Senior Citizen Interest Rates (p.a.)
9 months – 11 months 24 days 4.40% 4.65%
1 year 5 days – 1 year 10 days 5.10% 5.75%
1 year 11 days – 12 months 29 days 5.10% 5.75%
1 year – 1 year 4 days 5.15% 5.80%
11 months 25 days – 364 days 5.10% 5.75%
13 months – 13 months 29 days 5.10% 5.75%
14 months – 16 months 29 days 5.10% 5.75%
17 months – 17 months 29 days 5.10% 5.75%
18 months – 1 year 364 days 5.25% 5.90%
2 years – 29 months 29 days 5.40% 6.05%
3 years – 4 years 364 days 5.40% 5.90%
30 months – 3 years 5.40% 5.90%
5 years – 10 years 5.75% 6.50%

Features of Axis RD Interest Rates 2022

  • The minimum deposit amount needed to open an RD account at Axis Bank is Rs. 500
  • The tenure ranges from a minimum of 6 months to a maximum of 120 months (10 years)
  • Senior citizens can avail up to 0.65% extra rate of interest than general rates
  • The minimum amount can be deposited in multiples of Rs. 10
  • Premature withdrawal is allowed with a nominal penalty as per the bank norms
  • TDS deduction on Axis Bank Recurring Deposit interest rates is applicable subject to the existing rules as at the time of opening the account
  • The late payment penalty is Rs. 10 per Rs. 1000 per month
  • Partial withdrawal is not allowed on Axis Bank RD account

How to Calculate Axis Bank RD Interest?

The RD interest rates offered on Axis bank recurring deposit is compounded each quarter.

The formula used for calculation of the maturity value is –

A= P x (1+R/N) ^ (Nt)

Here,

A is the Maturity Amount.

P is a Recurring Deposit.

N is the Number of times the interest is compounded.

R is the Rate of interest.

T is Tenure.

Here is an example of the same,

Rahul deposits Rs. 500 each month for 9 months. The rate of interest applicable on her Axis Bank Recurring Deposit account is 6.5% (for regular RD). The sum on maturity would be –

A= P x (1+R/N)^(Nt)

= 4500 x (1+6.5/4)^(4×9/12)

= Rs. 4,623.

Hence, the interest income from the recurring deposit is Rs. 123.

Important Note: The interest in RD with Axis Bank is calculated quarterly.

Calculate Axis Bank RD Online

The simplest way to check how much profit you will make upon maturity of your Axis Bank RD account is to use the online Axis Bank RD calculator which can be accessed on various websites. This is by far the simplest method to evaluate the interest. All you need to do is provide the basic details in the fields like amount, tenure, and the rate of interest.

How to Apply for a New Axis Bank RD Account?

Individuals can apply for an Axis Bank Recurring Deposit –

  • Offline: This is the process

Gather all of the paperwork needed to open an Axis Bank RD account and visit a nearby bank to request the intimation procedure. One of the Axis Bank employees will assist you throughout the application process. It is recommended that photocopies of documents be brought with you.

  • Via Internet Banking: This is the process

Step 1: Navigate to Axis Bank’s official website.

Step 2: Hover your cursor over the ‘Login’ button at the top of the page. Choose ‘Login’ from the ‘Personal’ section of Internet Banking.

Step 3: Select “Create Recurring Deposit.”

Step 4: Fill out the form that displays the depositor’s and nominee’s information, if applicable.

Step 5: Once confirmed, the deposit amount will be taken from the customer’s savings account, and a receipt will be issued to the customer through email (for those who have registered for e-statement) or physically via post.

  • Via Mobile Banking: Here is the process

Step 1: Access the bank’s mobile application, Axis Mobile.

Step 2: Select the ‘Open RD’ option.

Step 3: Upon confirmation, the selected amount will be deducted from the linked savings account and an RD account will be created promptly.

If you have registered for an e-statement, a confirmation email will be sent to your registered email; otherwise, a physical statement will be mailed to you.

Eligibility Criteria for Axis Bank RD

  • The applicant should be an Indian resident or a HUF (Hindu Undivided Families)
  • NRIs can opt for an RD account through NRO and NRE accounts
  • In case of a minor, he/she can open an Axis Bank RD account under parental guardianship to supervise your finances

Documents Required to Open an RD Account with Axis Bank

  • Individuals would require submitting these documents to open an Axis Bank RD account.
  • Documents that serve as identity proof such as Aadhaar card, PAN card, Passport, driving license, ration card, etc.
  • Documents that serve as an address proof, namely, passport, electricity bill, telephone bill, etc.

Taxation of Axis Bank Recurring Deposit

Under the guidelines laid down by the Income Tax Act 1961, all Recurring Deposits are liable for taxation. The proceeds earned by an individual would incur a TDS at the rate of 10% if the accrued interest exceeds Rs. 10,000 in a financial year. However, individuals who would not be able to furnish PAN would incur TDS at the rate of 20%. However, individuals can protect their earnings against TDS by submitting a declaration under Section 197A. They can do so by filling a 15G or a 15H form, whichever is applicable in their case.

Premature Withdrawal Facility and Rules on Axis Bank RD

Individuals can withdraw prematurely from their Axis Bank RD account, but a penalty equivalent to 1% of the applicable interest has to be paid by them. Such a feature would help individuals to meet their financial crunch at a time of need. However, it should be noted that partial withdrawal from the RD is not applicable. Moreover, if there is a delay in the monthly payments, the bank will charge Rs. 10 per Rs. 1000 a month.

Penalties

Customers who opened the recurring deposit after August 9, 2016, must pay a penalty of Rs. 10 for every Rs. 1000 in late payments. Existing clients who open an account after the calendar month has passed must pay a penalty of the current business prime lending rate + 4% for the delay.

FAQs

Q1. What is the minimum monthly installment for Axis bank RD?

The minimum monthly installment needed to open an Axis Bank RD account is Rs. 500 whereas the maximum amount can be made in certain multiples and has got no limit.

Q2. Does Axis bank allow partial withdrawal of the funds?

No. Partial withdrawal of the deposited amount is not allowed by the bank.

Q3. Does the bank charge any tax on the interest earned?

Yes, the interest earned on the RD account is taxable under the Income Tax Act, 1961. If the total projected interest crosses Rs. 1000 in a financial year, TDS has deducted accordingly, i.e. 10% if the PAN details are shared and 20% in case you haven’t shared it.

Q4. Is a nomination facility available in Axis bank RD?

Ans. Yes, Axis Bank provides a nomination facility to its customers on RD account. Only one nominee per account is permissible, whether it is in a single name or joint name. The nomination process should be carried out as per the RBI rules. One can change the nominee through declaration in the appropriate forum.

Q5. Is investing in the Axis Bank RD worth?

Axis Bank RD interest rates are indeed one of the best competitive rates in the market and one can expect a decent return on investment by putting the money in the Axis RD account. Recurring deposits can allow you to park your money periodically and earn interest on your surplus savings. It is strongly recommended to read and understand all the investment-related documents carefully before proceeding with the investment.

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