It is important to note that the Union Budget 2015 has expanded the definition of Term deposits to include Recurring Deposits as well and modified the interest exemption limit of Rs. 10,000/- per Branch to read as Rs.10,000/- per “Bank” wef 01/06/15. TDS liability would now be determined based on the total interest accrued for all deposits tagged to the Customers’ CIF ID, if the exemption limits of some customers are breached (despite submission of the Forms 15G/ H), would be liable for deduction of tax
Are you considering saving money a bit at a time?
Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build up your savings through regular monthly deposits of fixed sum over a fixed period of time.
- Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples of Rs 500 thereafter.
- Recurring Deposit accounts can be opened for a minimum period of 12 months and in multiples of 12 months thereafter, upto a maximum of 120 months.
- The amount of installment once fixed, cannot be changed.
- Installment for any calendar month is to be paid on or before the last working day of the month. Where there is delay in payment of installment, customer will be levied a penalty @ PLR plus 4 % for the period of delay. Fraction of a month will be treated as full month for the purpose of calculating the penalty.
- The total amount repayable to a depositor, inclusive of interest, depends on the amount of monthly installments and the period of deposit.
For Rupee Term Deposits of a contracted amount less than Rs 5 Crores opened/renewed on or after May 1, 2014 (including Flexi deposits), interest rate shall be 1.00% below the card rate, prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1.00% below the contracted rate, whichever is lower. However, for Rupee Term Deposits closed within 14 days from the date of booking of the deposit interest rate shall be rate applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower.
For Rupee Term Deposits of a contracted amount of Rs 5 Crores and above, interest rate shall be 1% below the card rate prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower. This would also be applicable on Rupee Term Deposits closed within 14 days from the date of booking of the deposit.
There would be no premature withdrawal penalty on NRE Term Deposits.
Withdrawals of Term Deposits:
If you have created a Term Deposit with a Joint holder, kindly submit a declaration signed by all the holders. This is required in the unfortunate event of death of one of the holders, to enable Axis Bank to pay the maturity proceeds prematurely to the survivor.