Axis bank provides the facility of opening a Recurring Deposit and earn 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 rate ranges from 6.00% p.a. to 7.30% p.a. Senior citizens are entitled to get 0.50% extra interest over the regular ones.
|Period||Regular Interest Rates (p.a.)||Senior Citizen Interest Rates (p.a.)|
|6 to 9 months||6.00%||6.00%|
|9 to 12 months||6.50%||6.75%|
|12 months to 1 year 3 Months||6.75%||7.75%|
|1 year 3 months to 2 years||7.20%||7.85%|
|2 to 3 years||7.30%||7.85%|
|3 to 5 years||7.25%||7.75%|
|5 to 10 years||7.00%||7.50%|
Axis Bank Recurring Deposit – Special Features
- 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 2020 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
Important Note: The interest in RD with Axis Bank is calculated quarterly.
- 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
Axis Bank Recurring Deposit Premature Withdrawals Rules
In case the account holder wants to withdraw the deposited money before the maturity period, a penalty of 1% will be levied on the interest accrued. Moreover, if there is a delay in the monthly payments, the bank will charge Rs. 10 per Rs. 1000 a month. For instance, if the deposit amount is Rs. 2000, the late payment penalty will be Rs. 20.
Axis Bank RD Calculator
The simplest way to check how much profit you will make upon maturity of your Axis Bank RD account is to use the 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.
For example, if you want to check how much profit you will earn if you are depositing Rs. 1000 per month in an Axis Bank RD, for a period of three years; all you have to do is to fill the fields asking for the details like the installment amount, tenure, which is 3 years and 0 months. If the rate of interest is 6.50%, your RD maturity details will entail the maturity value as Rs. 39, 824, where the aggregate interest amount is Rs. 3,824.
Axis Bank RD Rates – Frequently Asked Question
How to open an Axis Bank RD account?
There are three ways to open an RD account in Axis Bank:
- By directly visiting the branch
- Via net banking
- Via mobile banking
If you are an existing Axis Bank customer, you can use your net banking credentials to open an e-RD. However, if you are not an account holder, an account is needed to open first. Once the account I active you can just simply follow the steps mentioned above.
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.
Does Axis bank allow partial withdrawal of the funds?
No. Partial withdrawal of the deposited amount is not allowed by the bank.
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 is deducted accordingly, i.e. 10% if the PAN details are shared and 20% in case you haven’t shared it.
Is nomination facility available in Axis bank RD?
Yes, Axis Bank provides nomination facility to its customers on RD account. Only one nominee is 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 appropriate form.
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. However, if your aim is wealth creation on the bigger side of the spectrum, and have the risk appetite, you can try other investment vehicles like mutual funds and stocks which can give you even more fruitful returns. It is strongly recommended to read and understand all the investment-related documents carefully before proceeding with the investment.