AXIS Bank Recurring Deposit

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A Recurring Deposit (RD) is a special type of deposit that works similar to a Fixed Deposit (FD) in which monthly or quarterly deposits are made that is fixed for a specific period of time. This is a great way of saving a considerable amount of money for people who do not have a big chunk of money at their disposal to invest in FD or in other types of investment plans.

A good example of an RD explains it clearly – Ram wants to invest a sum of Rs. 50,000 in an FD but he does not have the whole amount in-hand at the moment. In this situation, Ram decides to opt for an RD and deposit a sum of Rs. 5,000 every month for 10 months. This way he can successfully save Rs. 50,000 and even get interest on it. The RD was designed to benefit the middle-class and lower sections of society who usually cannot invest in an FD outright or who prefer to save in small amounts first to build up a corpus. It gives them an opportunity to build good savings for future needs. However, the scheme is also an ideal short-term investment option for people who want to park their money for a short period rather than putting it aside without being able to access it in any way.

Axis Bank Recurring Deposit
Axis Bank Recurring Deposit Interest Rates
Axis Bank Recurring Deposit Features
How to Apply for Axis Bank Recurring Deposit

Axis Bank Recurring Deposit

Axis Bank recurring deposit scheme comes with several advantages. Individuals can invest a minimum monthly sum of Rs. 500 and more in the multiples of Rs. 500. There is no maximum limit on RD with Axis Bank. The minimum tenure for Axis Bank RD is 6 months whereas the maximum tenure is 10 years. The total deposit amount inclusive of monthly payments and interest depends on the amount of monthly payment and interest.

Axis Bank Recurring Deposit Interest Rates

Here is an overview of the Axis Bank Recurring Deposit interest rates.

Period Interest Rates
For amount Less than Rs. 1 crore From Rs. 1 crore to Rs. 5 crore
From 7 Days to up to 14 Days 3.5% 6%
From 15 Days to up to 29 Days 3.5% 6%
From 30 Days to up to 45 Days 5.5% 6%
From 46 Days to up to 60 Days 6.5% 6.5%
From 61 Days to up to 3 Months 6.5% 6.5%
From 3 Months to up to 4 Months 7% 7%
From 4 Months to up to 5 Months 7% 7%
From 5 Months to up to 6 Months 7% 7%
From 6 Months to up to 7 Months 7.25% 7.25%
From 7 Months to up to 8 Months 7.25% 7.25%
From 8 Months to up to 9 Months 7.25% 7.25%
From 9 Months to up to 10 Months 7.40% 7.40%
From 10 Months to up to 11 Months 7.40% 7.40%
From 11 Months to up to 1 Year 7.40% 7.40%
From 1 Year to up to 13 Months 7.5% 7.5%
From 13 Months to up to 14 Months 7.5% 7.5%
From 14 Months to up to 15 Months 7.5% 7.5%
From 15 Months to up to 16 Months 7.5% 7.5%
From 16 Months to up to 17 Months 7.5% 7.5%
From 17 Months to up to 18 Months 7.5% 7.5%
From 18 Months to up to 2 Years 7.5% 7.5%
From 2 Years to up to 30 Months 7.5% 7.5%
From 30 Months to up to 3 Years 7.5% 7.5%
From 3 Years to up to 5 Years 7.5% 7.5%
From 5 Years to up to 10 Years 7.5% 7.25%

Axis Bank Recurring Deposit Features

Features of Axis Bank recurring deposit are explained below:

  • Axis Bank Recurring Deposit allows people to save a small amount every month and build a great corpus of savings at the end of the tenure.
  • Individuals who want to build savings for specific purpose such as for a vacation or so, can opt for a shorter tenure such as 6 months and enjoy the benefits.
  • As per specific conditions, individuals are also allowed to withdraw funds before the full term ends. In case of Rupee Term Deposits, the interest rate will be lowered 1% below the card rate and rest of the amount will be returned along with the interest. However, the interest is also subject to the period for which the amount has been deposited.
  • In the case of delayed payments, the depositor has to pay a fine of Rs. 10 for every Rs. 1,000 every month. This is applicable on accounts opened after 9th August 2016. However, the existing customers who opened their account before 9th August 2016, the penalty will be existing Business Prime Lending Rate + 4%. In this case, the fraction of the month will be considered as full month.

How to Apply for Axis Bank Recurring Deposit

Individuals can apply for Axis Bank Recurring Deposit in three ways. One is to visit the branch and ask for the documents and eligibility requirements. And the other way is to apply through internet banking and mobile banking.

  • Internet Banking: Individuals who want to apply online have to visit the Axis Bank internet banking portal. After logging in, they have to click on the ‘Create Recurring Account’ option. This is an instant account creation service so you have to be careful. In this option, you have to fill in all the required information such as amount, tenure, and nominee details. After confirming, the account will be created at once and the amount will be deducted from your savings/current account. A Fixed Deposit Advice will be emailed to your registered email address. Individuals, who do not have a registered email ID, will get a physical Fixed Deposit Advice by post.
  • Mobile Banking: People who want to apply through mobile banking have to log in to their Axis Bank mobile banking application. They have to click on ‘Open RD.’ The rest of the process is similar to the internet banking application. You just have to fill all the necessary details and confirm the process. A digital or physical Fixed Deposit Advice will be sent to your email or postal address.
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