Why invest in Fixed Deposits?
Secure investments: Fixed Deposits are ideal for risk-averse investors, offering
safe and secure investment option with steady and pre-determined returns. They are also an optimal
option for investors to balance out their
risk against market-linked instruments.
Higher returns: Fixed Deposits generally provide higher returns than Savings
Accounts, helping you reach your financial goals over various time horizons.
Flexibility: With tenures ranging from 7 days to 10 years, Fixed Deposits offer
flexibility in terms of investment tenure. You can also choose your payout frequency, whether it is
a single payout at maturity or regular
monthly or quarterly payouts.
Variety: Axis Bank offer various Fixed Deposit options like Regular FD, Digital FD,
Tax-Saver FD, Fixed Deposit Plus, and Auto FD to suit different financial goals. Additionally,
senior citizens can benefit from FDs with
special higher interest rates.
Important terms related to Fixed Deposit interest rates
Understanding the key terms associated with FD interest rates is crucial for maximising your
investment returns. Here are some essential concepts to know:
Timely closure: This term signifies the process of maturity of the FD. If you hold
the FD till maturity, you will get the principal sum plus the entire accrued interest.
Breaking the FD account: This means breaking the FD or withdrawing the amount before
the maturity period. Premature withdrawals generally involve penalties, resulting in a reduced
interest payout.
Partial withdrawal: This option permits you to withdraw a portion of the Fixed
Deposit before maturity, typically in multiples of ₹1,000. You may utilise this option in case of
any urgent financial need. But do note that
this action may attract a 1% penalty. In the case of Axis Bank, for deposits below ₹5 crore opened
or renewed on or after December 15, 2017, the initial partial withdrawal of up to 25% of the
principal amount carries no penalty. Nevertheless,
the remaining deposit continues to accumulate interest at the initially agreed rate.
Bank Fixed Deposit interest rates: Special features
Axis Bank Fixed Deposits offer more than just savings. Use them to optimise your financial strategy.
- FDs offer higher interest rates than regular Savings Accounts, offering safe and secured
returns.
- Anyone can invest money in a FD, as the eligibility extends to all Indian residents, including
minors and Hindu Undivided Families (HUFs).
- Nomination in FD application ensures they can claim the deposit post account holder's demise,
with valid death proof.
- The sweep-in feature on FDs lets you link savings to FD, enabling the transfer of excess funds
and earning FD interest on savings.
- Axis Bank facilitates loans against FDs, giving access to a loan with interest rates marginally
above the FD rates.
