Axis Bank offers a wide range of deposit schemes including the recurring deposit scheme to help its customers build their savings. Investing in the recurring deposit of the bank fetches customers with good returns at the prevailing Axis Bank RD interest rates which are identical to the bank’s FD interest rates. This means at a lower investment amount, customers can earn high returns. Read further to know the current Axis Bank RD rates along with features of the scheme.
Axis Bank RD Interest Rates 2020
|Tenure||Axis Bank RD Rates (p.a.)|
|Regular Citizens||Senior Citizens|
|7 days to 14 days||3.50%||3.50%|
|15 days to 29 days||4.25%||4.25%|
|30 days to 45 days||5.00%||5.00%|
|46 days to 60 days||5.50%||5.50%|
|61 days < 3 months||5.50%||5.50%|
|3 months < 4 months||5.50%||5.50%|
|4 months < 5 months||5.50%||5.50%|
|5 months < 6 months||5.50%||5.50%|
|6 months < 7 months||5.85%||6.10%|
|7 months < 8 months||5.85%||6.10%|
|8 months < 9 months||5.85%||6.10%|
|9 months < 10 months||6.10%||6.35%|
|10 months < 11 months||6.10%||6.35%|
|11 months < 11 months 25 days||6.10%||6.35%|
|11 months 25 days < 1 year||6.50%||6.75%|
|1 year < 1 year 5 days||6.40%||7.05%|
|1 year 5 days < 1 year 11 days||6.40%||7.05%|
|1 year 11 days < 1 year 25 days||6.40%||7.05%|
|1 year 25 days < 13 months||6.50%||7.15%|
|13 months < 14 months||6.40%||7.05%|
|14 months < 15 months||6.40%||7.05%|
|15 months < 16 months||6.40%||7.05%|
|16 months < 17 months||6.40%||7.05%|
|17 months < 18 months||6.40%||7.05%|
|18 Months < 2 years||6.65%||7.30%|
|2 years < 30 months||6.70%||7.35%|
|30 months < 3 years||6.70%||7.20%|
|3 years < 5 years||6.70%||7.20%|
|5 years to 10 years||6.70%||7.20%|
Note: The above-mentioned Axis Bank RD interest rates are applicable w.ef.. November 26th, 2019.
Types of Axis Bank Recurring Deposit
Axis Bank provides only one recurring deposit scheme which is targeted towards investors who want to build a wealth corpus by investing systematically every month over a specified period of time. It is low-risk investment option and solves purpose for risk-averse investors to earn better returns than a savings account, thanks to the higher Axis Bank RD interest rates. Further details about the scheme are stated in the table below:
|Tenure||6 months – 10 years|
|Min. Deposit Amount||Rs. 500|
|Interest Treatment||Quarterly compounding|
|Rates for Senior Citizens||Preferential rates up to 0.65% over RD rates for regular individuals|
|Premature Withdrawal||Available for resident term deposits (1% penalty charged)|
Axis Bank Premature Withdrawal Facility
Axis Bank extends the facility to withdraw from its recurring deposit to mend a cash crunch or if the customers are unable to pay further installments. The following points must be considered about this facility:
- Penalty of 1% levied on applicable Axis Bank RD rates
- Interest paid at the prevailing card rates or agree rate at the time of booking, whichever is lower
- No interest paid on premature withdrawal of NRI RD deposits
- Partial withdrawals are not allowed
Axis Bank RD Calculator
The Axis Bank RD calculator is an online tool offered by Paisabazaar.com specifically designed to help people calculate the maturity value of their investment before actually making the investment.
To use this tool details such as the investment amount, rate of interest and tenure of the deposit are required. Since it’s a free tool, customer can use it multiple times to compare. It should be noted that the actual maturity value may vary from the calculated amount since it depends on the rate of interest prevailing at the time of investment.
Documents Required to Apply for Axis Bank RD
The following list of documents must be checked before applying for an RD with Axis bank (new customers):
- KYC documents for photo ID verification and address verification (Passport, driving license, Aadhar, utility bills, etc.)
- PAN Card
- Passport-sized photograph(s) of depositor and nominee, if any
How to Apply for Axis Bank RD?
There are 3 ways via which one can open a recurring deposit account with Axis Bank, viz.:
Step 1: Go to the official website of Axis Bank.
Step 2: Hover cursor on the ‘Login’ button on top of the page. Select ‘Login’ under ‘Personal’ section of Internet Banking.
Step 3: Click on “Create Recurring Deposit”.
Step 4: Fill the form that appears with details of depositor and nominee, if any.
Step 5: Once confirmed, deposit amount shall be deducted from the customer’s savings account receipt of which shall be mailed via email (for those registered for e-statement) or physically via post.
Step 1: Login to the mobile application of the bank, i.e. Axis Mobile.
Step 2: Select the option of ‘Open RD’.
Step 3: On confirmation, the amount selected shall be debited from the linked savings account and an RD account shall be created instantly.
Confirmation mail shall be sent on the registered email if one is registered for e-statement otherwise physical statement shall be sent via post.
Collect all the documents required to open an Axis Bank RD account and walk in to the nearby branch and request for intimation process. One of the Axis Bank personnel shall help through the entire application process. It is recommended to carry photocopies of documents along.
Frequently Asked Questions
Q. Is the interest earned on Axis Bank RD taxable?
A. Yes, the interest earned at the prevailing Axis Bank interest rates is taxable.
Q. Does RD earns same returns as an FD?
A. No. Most of the banks and other lenders provide RD at their fixed deposit rates but the interest earned is higher in FD as compared to recurring deposit.
Q. Is there penalty for non-payment of due installment for Axis Bank RD?
A. Yes, the bank levies a penalty of Rs. 10 for each Rs. 100.
Q. Can one apply for recurring deposit via Axis Bank net banking?
A. Yes. Click here to know how to apply for Axis Bank RD via net banking.