Fixed Deposit Interest Rate

AXIS Fixed Deposit Scheme
 

Axis Bank offers different fixed deposit schemes with varying tenure options but a minimum for 6 months. Axis Bank offers attractive interest rates on fixed deposits can be opened with just a minimum amount of Rs 10,000. Axis bank offers Fixed Deposit Scheme of three types, which includes Reinvestment Deposits, Automatic Rollover, and Axis Bank Fixed Deposit Plus scheme. Other than these, Axis Bank even offers Tax Saver Fixed Deposit schemes, which includes “Joint holder Type Deposits” and “Single holder Type Deposits". The rates of interest differ on the basis of different categories of applicants on tax saver Fixed Deposits by Axis bank.


Certain Highlights of Axis Bank Fixed Deposit are:
 

  • Along with Fixed Deposit account, Axis Bank offers the facility of automatic roll-over on maturity on the principal amount as well as interest.
  • An applicant can maintain a fixed deposit account with Axis Bank for a minimum period of 6 months.
  • The minimum investment amount for Fixed Deposit account is Rs. 10,000.
  • Good returns owing to competitive Axis Bank fixed deposit plus rates.

Axis Bank FD Interest Rates

FD Tenure

Interest Rates for Domestic Deposits less than Rs 5 Crores (in %)

Regular Citizens Senior Citizens
7 days to 14 days 3.50 3.50
15 days to 29 days 3.50 3.50
30 days to 45 days 5.50 5.50
46 days to 60 days 6.00 6.00
61 days < 3 months 6.00 6.00
3 months < 4 months 6.25 6.25
4 months < 5 months 6.25 6.25
5 months < 6 months 6.25 6.25
6 months < 7 months 6.50 6.75
7 months < 8 months 6.50 6.75
8 months < 9 months 6.50 6.75
9 months < 10 months 6.75 7.00
10 months < 11 months 6.75 7.00
11 months < 1 year 6.75 7.00
1 year < 13 months 7.00 7.50
13 months < 14 months 7.00 7.50
14 months < 15 months 7.00 7.50
15 months < 16 months 7.00 7.50
16 months < 17 months 7.00 7.50
17 months < 18 months 7.00 7.50
18 months < 2 years 6.50 7.00
2 years < 30 months 6.25 6.75
30 months < 3 years 6.25 6.75
3 years < 5 years 6.25 6.75
5 years to 10 years 6.25 6.75

Note: the above rates are applicable with effect from 16th June 2017 and are subject to change without any prior notice.

How Does Axis Bank Calculates Rate of Interest on Fixed Deposits?

Axis Bank adopts following method of calculation for computing interest rates and rate of return on fixed deposits:


For fixed deposit with 6 months & above tenure
 

  • Axis bank calculates interest on quarterly basis for fixed deposits of 6 months & above.
  • The bank adds the interest amount earned during the previous quarter to the Principal for calculation of interest. This amount for fixed deposit interest rate is calculated every quarter.
  • As per the IT regulations prevalent from time to time, tax at source is deducted.

For fixed deposit with below 6 months tenure
 

  • Interest on fixed deposit below 6 months is considered in number of days.
  • For short term fixed deposit, bank calculates rate of interest on the deposited amount at Simple Interest.
  • If the depositor opts for receiving interest payments on deposited amount on a quarterly basis, then interest amount is calculated and paid on quarterly basis.
  • As per the IT regulations prevalent from time to time, tax at source is deducted.

In case of Premature Encashment
 

For fixed deposit accounts opened/renewed on or after May 1, 2014, rate of interest is calculated 1.00% below the card rate, existing as on the same as the deposit was made, and is applicable only for the period the deposit has remained within the bank or else 1.00% below the contracted rate, whichever is lower.


For deposits closed within 14 days from the date of booking of the deposit, the interest rate shall be the rate applicable only for the period the deposit has remained within the bank or the contracted rate, whichever is lower.

Factors That Affect Axis Fixed Deposit Interest Rates

The interest rate offered by Axis bank varies as per various economic, political, and financial factors. Certain factors that influence the pre-defined rate of interest on fixed deposit include:
 

  • Reserve Bank of India (RBI) - To achieve maximum credit control and flow of funds in the country, RBI or Reserve bank of India enforces certain restrictions on banks. If RBI expands liquidity, interest rates are likely to move to the lower side leading to higher inflation. On the other hand, if the RBI lowers money supply, the interest rates rise, leading to inflation getting curbed.
     
  • Recession- Recession in simple words means economic slowdown. In such times, RBI expands money supply in the market by reducing the interest rate on the cash stock in the bank. Thus, the FD interest rate gets lowered.
     
  • Inflation- Inflation means hike in the price of goods. Inflation can lead to rupee devaluation and decrease in the purchasing power over lent amount. Therefore to compensate for the loss in interest of given loans, banks offer higher interest rates schemes on term deposits.
     
  • Current state of economy- Economic state of the country is an important factor in determining the return rates of different financial products. In case of a developing country, economy is growing and there is a high credit demand. In such a situation, banks give attractive interest rates on FD to satisfy the rising credit demand.

Other than these, there are several other factors that influence fixed deposits and the interest rates offered by them. It is crucial to consider all the interest rate influencing factors and self-analyzing about which would be the right option to maximize the returns and minimize the risks.

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