Axis Bank offers multitudes of fixed deposit schemes for various durations. It offers simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 10,000. You can make additions to your deposit in multiples of Re 1 thereafter. The tenure of your fixed term deposit must be a minimum of 6 months.
Fixed Deposit Schemes
In a reinvestment fixed deposit scheme, the interest accrued on your deposit at the end of each quarter is invested along with the principal. The tenure of your deposit must be a minimum of 6 months. At the end of the quarter, the interest and the principal are both rolled over, and the interest is calculated on the total sum net of Tax Deducted at Source (TDS)
As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on maturity (for both the principal and interest). You can select this option in the Account Opening Document (AOD). The options available are:
Rollover only Principal:
Only the principal amount of your fixed deposit will be rolled over. The interest will be either credited to your designated account or paid out.
Rollover Principal and Interest accrued in Reinvestment Deposit scheme:
This will rollover both the deposit and the interest accrued for the same tenure at the Interest Rates
applicable on the maturity date.
On or before the maturity date, you can make the following changes in the rollover instructions of the deposit:
- Change in tenure
- Change in maturity instructions
- Change in payment instructions
- Change in principal (only reduced amount)
- Change rollover of Principal to rollover of Principal + Interest, or vice versa.
Withdrawals of Fixed Deposits
All encashment or withdrawals of Fixed Deposits can only be made at the branch where the deposit was booked.
Method of calculation of interest rates on your fixed deposits
- For fixed deposits with tenure of 6 months & above, interest is calculated on a quarterly basis.
- Interest earned during the previous quarter is added to the Principal for calculation of interest. Fixed deposit interest rate on this amount is calculated every quarter.
- For fixed deposits schemes with tenure of below 6 months, interest is calculated at Simple Interest. Please note that the period of Fixed Deposit is considered in number of days.
- In the event the depositor chooses to receive the periodic interest payments on a quarterly basis, interested is calculated and paid on quarterly rests.
- On premature withdrawal of the deposit, interest shall be paid only for the period for which the deposit is maintained with the Bank and at the rate applicable for such period.
- Tax at source is deducted as per the Income Tax regulations prevalent from time to time.
*For all new Reinvestment Term Deposits to be opened on and after 1st August, 2013 and all existing Reinvestment Term Deposits that may be renewed on and after 1st August, 2013, interest reinvested would be net of TDS and hence the maturity value would vary to that extent.