Axis Bank RD Interest Rates:
Individuals in the salaried class often use the term recurring deposit to add a benefit to their monthly earnings. Axis Bank RD is an incentive to gain returns on money that has been invested. Axis Bank RD accounts are available on terms ranging from 6(1/2 year) to 120 months (10 years). The interest rate on Axis Bank RDs ranges from 4.40 per cent to 7.30 per cent per annum. Senior citizens are entitled to a 0.50 per cent higher rate of interest than the general public.
Features of Axis Bank RD:
- Axis Bank needs a minimum deposit of Rs. 500 to open an RD account.
- A minimum of 6 months and a maximum of 120 months are available (10 years).
- Senior citizens will get a 0.65% higher rate of interest than the general rate.
- In multiples of Rs. 10, the minimum amount may be deposited.
- Premature withdrawals are permitted with a nominal penalty in accordance with bank policies.
- According to the regulations in effect, TDS is deducted on Axis Bank Recurring Deposit interest rates when the account is opened.
- The cost for late payments is Rs. 10 per Rs. 1000 per month.
- On an Axis Bank RD account, partial withdrawals are not permitted.
Axis Bank RD Interest Rates:
|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||5.15%||5.40%|
|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||5.50%||6.00%|
Types of Axis Bank RD schemes:
Axis Bank RD are divided into three groups depending on the duration:
- Short-term Axis Bank RD: The tenure of this type of Axis Bank RD ranges from 6 months to 3 years. This form of RD is perfect for those who want to develop a saving habit.
- Medium-Term Axis Bank RD: When you don’t want to commit for a long period of time and aren’t sure how much value you’ll get from RD, a medium-term periodic deposit is a smart option. It strikes a proper balance between flexibility and investment dedication, allowing you to weigh the pros and cons. The tenure typically lasts between three and seven years.
- Long-Term AxisBank RD: When you want to earn a return on your savings but don’t have the funds to invest in a fixed deposit, a long-term RD is the safest option. When investing in recurring deposits, you achieve the versatility of making regular contributions while receiving a return equal to a fixed-income fund. The tenure typically lasts between seven and ten years.
Documentation required for Axis Bank RD:
Individuals eligible for Axis Bank RD accounts are as follows :
- The claimant must be an Indian citizen or a member of a HUF (Hindu Undivided Families)
- NRIs will open an RD account using their NRO or NRE accounts.
- Children below the age of 18, he or she will open an Axis Bank RD account under parental supervision to manage their finances.
Documents required for eligible individuals are
- To open an Axis Bank RD account, individuals must request these papers.
- Identity-proofing papers such as the Aadhaar card, PAN card, visa, driver’s license, ration card, and so on.
- Passports, energy bills, mobile bills, and other documents that act as proof of address
Axis Bank RD Rates- Premature Withdrawal:
Individuals may withdraw funds from their Axis Bank RD account early, but they must pay a premium equal to 1% of the relevant interest. Functionality like this will assist people with meeting their financial obligations while they are in a pinch. It should be remembered, however, that partial removal from the RD is not permitted.
Furthermore, if regular deposits are not made on time, the bank would owe Rs. 10 per Rs. 1000 per month. E.g., if the deposit is Rs. 2000, the penalty for late payment is Rs. 20.
Calculation of Axis Bank RD Interest Rates:
The return on Axis Bank’s Recurring Deposit is compounded quarterly.
The maturity value is determined using the formula –
A= P x (1+R/N) ^ (Nt)
Here, In this case,
Maturity Amount is represented by the letter A.
The letter P stands for Recurring Deposit.
The number of times interest is multiplied is denoted by N.
The letter R denotes the interest rate.
The letter T stands for tenure.
For, e.g., An evaluation of how much benefit you’ll make if you deposit Rs. 1000 a month for three years in an Axis Bank RD, you have to fill in the fields that ask for information like the instalment sum and the tenure, which is three years and 0 months. If the interest rate is 6.50 per cent, the maturity value of your RD would be Rs. 39, 824, for a gross interest balance of Rs. 3,824.
Axis bank’s calculation method for fixed deposits is different as compared to recurring deposits; for more, click here
Process of opening an Axis Bank RD accounts:
Individuals should apply for Axis Bank RD through :
- Offline mode.
- Internet Banking is an option.
- Mobile Banking is an option.
Individuals who want the offline application must visit their nearest branch to complete the requisite paperwork. Individuals applying via internet banking or mobile banking, on the other hand, must go to Axis Bank’s official website or download the bank’s mobile app and complete the required formalities.
Nomination facility for Axis Bank RD:
Axis Bank offers nominating services to its RD account holders. Just one candidate per account is allowed if the account is of a single or joint name. The RBI laws should be followed throughout the election process. A statement in the appropriate form may be used to modify the candidate.
Tax Benefit on Axis bank RD:
Both Recurring Deposits are subject to taxes under the rules set out by the Income Tax Act of 1961.
If an individual’s interest earnings surpass Rs. 10,000 in a financial year, he or she will be subject to a 10% TDS. Individuals who are unable to have a PAN, on the other hand, would be subject to a 20% TDS. On the other hand, individuals will cover their earnings from TDS by filing a declaration under Section 197A. They will do so by completing a 15G or 15H form, depending on their situation.
Axis Bank News – Mar 2021:
2021-02-26: IRDAI approves Axis Entities-Max Life Insurance deal
The IRDA of India has granted Axis Bank and its branches, Axis Capital and Axis Securities, to buy up to a 12 per cent stake in Max Life Insurance. The acceptance by the IRDAI was a significant venture deal that was first revealed in April 2020.
2020-10-30: Axis Bank reported a net profit of ₹1,623 crores in Q2
Axis Bank reported a net profit of ₹1,682.67 crores in the Q2 of FY21, against a loss of the value of ₹112 crores in the same period last year. The net interest income increased 20% y-o-y to ₹7,326 crores, and its net interest margin (NIM) stood at 3.58%. Further, retail loans, including home, personal, gold, two-wheeler, gold, and car loan, grew 12% y-o-y to ₹3.05 trillion, accounting for 53% of the net advances of the bank.
FAQs for Axis Bank RD Interest rates :
✅Is premature withdrawal allowed in RD accounts?
The money will only be taken out until it reaches maturity. You can split your RD until it matures if you have an emergency, but your account will be locked after that. Banks may subtract a penalty of 1 or 2 per cent from the interest earned on your RD when it was in their custody. The penalty for not paying a periodic deposit is Rs. 10 per Rs. 1,000 per month at Axis Bank. If a depositor requests a premature withdrawal before the lock-in date expires, he will get no interest, and only the principal balance will be refunded. Aside from the interest cancellation, all benefits given are now revoked.
✅Is partial withdrawal of RD accounts allowed by Axis Bank?
Partial withdrawals from recurring deposits are not permitted by Axis Bank. Some banks, on the other hand, allow you to use your RD as collateral for a loan or an overdraft. Post offices, on the other hand, allow premature withdrawals if you have had an RD account with them for at least a year. The balance deducted is called a loan that must be completely repaid. Premature closing is possible, but it comes at a price.
✅Is investing in the Axis Bank RD worth?
The Axis Bank RD interest rates are among the most favourable in the industry, and placing capital in an Axis RD account will yield a good return on investment. Recurring deposits allow you to set aside funds regularly and gain interest in your excess savings. Before continuing with the fund, it is highly advised that you read and comprehend all investment-related materials thoroughly.