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Axis Bank's Fixed Deposits

Earn more with competitive rates of interest on your Fixed Deposits

Fixed Deposits (FD)

Axis Bank's Fixed Deposit (FD) is a safe and convenient way to see your savings grow. Open a Fixed Deposit online with Axis Bank and save a minimum of Rs. 5,000 for a flexible tenure starting from a minimum of 7 days to a maximum of 10 years. Axis Bank’s online account opening services help you to open a Fixed Deposit account from wherever you are. It provides easy transfers from your savings account to your Fixed Deposit. Get the most competitive Fixed Deposit interest rates for both long and short term investments. Axis Bank provides you automatic roll-out facility so that you can get your Fixed Deposit interest credited to a designated account or get it paid out to a different account.

 

 

Types of Fixed Deposits

  • Save funds for a fixed tenure and enjoy a fixed rate of return
  • Flexible maturity periods ranging from 7 days to 10 years
  • Earn secured returns and build a corpus to meet your needs
  • Open FD with full KYC without any documentation
  • Fully digital end-to-end account opening process done in 7 minutes using video KYC and basic details
  • Open your Digital FD with any bank’s Savings Account
  • Save money for your future as well as enjoy tax benefits
  • Enjoy exemption on investment of up to Rs 1.5 lakh under Section 80C
  • Lock-in period of 5 years for the principal amount
  • Earn higher rate of interest than regular FDs
  • Minimum investment required is Rs 2 cr
  • Choose between simple interest and compound interest
  • Link Savings Account to FD and enjoy flexibility of Savings Account and higher returns of FD
  • Money is automatically transferred from Savings Account to FD when balance exceeds a pre-determined limit with Auto Fixed Deposit
  • Access money in FD via ATM or cheques

How to Choose the Right Fixed Deposit

When selecting which FD to invest in, keep the following factors in mind:

  • Check the interest rates offered by the bank and if possible lock into the highest rate
  • Try to match the tenure of the FD with your financial goal to ensure availability of funds as and when you need it
  • Check the conditions for premature withdrawal i.e., penalty if any or time period before withdrawal is permitted
  • Check if it is possible to open the FD online as it will save you time

Advantages of Fixed Deposit

  • Offers a safe and secure investment option for risk averse investors
  • Fixed interest rates that remain unchanged during the tenure of the FD, thereby offering a security net against market volatility
  • Flexible tenures- Select the FD tenure so that it matches the time frame required for your various needs
  • Knowing the exact maturity amount can help plan for your future requirements
  • Easy to redeem or withdraw in case of any emergency
  • Invest in lump sum amount or monthly installments, depending on your cash flow
  • Senior citizens looking for regular income can select option of monthly interest payment
  • Avail a loan against your FD without withdrawing it, at a lower interest rate than an unsecured loan
  • Take overdraft against your FD and pay interest only the amount you utilize, while rest of the FD amount continues to earn interest
  • Get tax exemption up to Rs 1.5 lakh by investing in a tax-saver FD

Factors that affect FD interest rates

  • Tenure: FDs of lower tenure offer lower rates while FDs of higher tenure offer higher rates. If you are looking to earn higher returns and do not foresee any immediate need for funds, lock into the highest possible tenure
  • Depositor’s age: Senior citizens i.e. those above 60 years of age usually get a higher interest rate than regular depositors
  • Deposit Amount: Some FDs offer higher interest for higher amounts, such as Fixed Deposit Plus, thereby ensuring secured and higher returns

Tax impact on Fixed Deposit

  • Investment up to Rs 1.5 lakh in a Tax Saver FD is exempt from income tax under Section 80C
  • Interest earned on FDs of all kinds is added to your income tax and taxed as per your income tax slab
  • TDS of 10% is applicable if PAN is provided to the bank. If PAN is not provided, TDS is at 20%
  • If the interest income from all your FDs is less than Rs 40,000 there is no TDS. For senior citizens the amount is Rs 50,000
  • If your total annual income is less than Rs 2.5 lakh, i.e. if you are below the taxable limit, you can avoid TDS by submitting Form 15G to the bank
  • Similarly, senior citizens who are below the taxable limit can avoid TDS by submitting Form 15H to the bank

Fixed Deposit – Frequently Asked Questions

A Fixed Deposit (FD) is an investment avenue that offers safe and secure returns in the form of interest. You invest a certain amount of money in an FD for a fixed period and earn interest either at regular intervals during that period or at maturity, i.e. at the end of the period. The FD interest rate is fixed and does not change during the term of the FD. It is an investment that can be easily done jointly between spouses or between parent/guardian and child.

In the case of Axis Bank, the minimum amount required to open an FD account is Rs 5000 if done through internet banking or a mobile app and Rs 10,000 if done through a bank branch.

  • You can earn tax exemption up to a maximum of Rs 1.5 lakh on the amount deposited in Tax-Saver FD under Section 80C
  • Tax exemption is allowed only on the initial deposit amount and not every year on the same deposit. However, you can book a new Tax-saver FD every year for getting a tax exemption
  • The tenure is of five years and it cannot be withdrawn before the end of five years
  • Joint holding is permitted, but only the first holder will be allowed to claim tax exemption on the deposit amount

Yes. FDs can be prematurely withdrawn apart from "Fixed Deposit Plus". 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. For features on premature penalty, please refer the advantages section.

FD is easy to invest, offers secure and guaranteed return to your investment.
You can choose the options for FD interest pay-out such as monthly, quarterly or at maturity depending on your requirement for funds.

The minimum investment period for an FD is as low as 7 days.

Yes, FD can be made jointly in the name of a minor and an adult. FD for a minor is usually made between parents and children. Sometimes guardians, such as grandparents, also invest jointly with their minor grandchildren.

Yes, you can get an overdraft facility against your FD, which you can avail of without breaking the FD. The overdraft facility is available against FD for the residual or remaining tenure of the FD. You can withdraw funds using a chequebook or through the ATM.  This feature can help you meet your need for funds, while you continue to earn interest on your FD. The overdraft amount is usually a fixed percentage of your FD amount. In the case of Axis Bank, it is 85% of the FD amount, with a minimum of Rs 25,000.  Since it is a secured loan, the interest rates are competitive and the approval and sanction process is quick. The other advantage is that interest is charged only on the amount that is utilised and not on the entire loan amount. 

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