E-file your Income Tax Return for FREE

Recurring Deposits can be a useful addition to your tax saving and investment strategy and a wonderful way to save money for future emergencies. Axis Bank Bank’s Recurring Deposit is a trusted RD scheme you can use for making regular monthly investments. Here, we give you all the details you need to know before starting an RD account with Axis Bank Bank.

Axis Bank RD Interest Rates for different Investment Periods

Investment period RD rates for regular deposit RD rates for Senior Citizens
6 months to 8 months 29 days 6.50% 7.00%
9 months to 11 months 29 days 6.75% 7.25%
1 year to 1 year 364 days 7.00% 7.50%
2 years to 10 years 6.75% 7.25%

Axis Bank Recurring Deposit Interest Rates

  • Axis Bank offers interest rates for RD accounts that go as high as up to 7.00%
  • Interest on RD with Axis Bank is compounded quarterly
  • For senior citizens, Axis Bank offers interest on RD up to 7.50%

Axis Bank recurring deposit interest rate

Axis Bank Recurring Deposit: Special Features

  • Premature withdrawal of money from the RD account is allowed. However, Axis Bank charges a penalty of 1% on the interest applicable
  • The RD deposit tenure ranges from 6 months to 120 months. You can choose the time period that suits your needs
  • The minimum monthly amount deposited must be in multiples of Rs. 10
  • The gains from the RD will be subject to TDS deductions according to the existing income tax rules at the time of opening the RD account
  • Penalty on non-payment of the periodic deposit is Rs. 10 per Rs. 1,000 per month

Axis Bank Recurring Deposit: How much can you save?

It is true that recurring deposits can help you save money and earn interest on your surplus savings. But they are not the only way of wealth creation. If you are comfortable with regular monthly investments, you can also explore Mutual Funds SIP as an alternative way of wealth creation. Below we have detailed the benefits of Mutual Fund SIPs that make it an even better choice for saving money than RD.

Mutual Fund SIPs: Why You Should Choose This

  • Mutual Fund SIP payments start from as low as Rs. 500. You can choose monthly or quarterly payments as per your convenience
  • When you invest in Mutual Funds, you are essentially investing in debt or equity funds. As per the market trend for the last 10 years, Equity Linked Mutual Funds (ELSS) have consistently earned high dividends with an average return rate of 12-22%. RD interest rates are only around 6-8% maximum
  • SIP accounts offer much higher liquidity as compared to RD accounts.Unlike RD, when you withdraw money from SIP there is no penalty charged
  • The interest gains from RD accounts are subject to tax, while the gains one receives from Equity Linked Mutual Fund SIPs (ELSS) are totally exempt from tax

Axis Bank RD Eligibility Criteria

  • Investor must be an Indian resident or a HUF (Hindu Undivided Families)
  • If an NRI, investor can open an RD account through NRO and NRE accounts
  • If a minor, investor can open an RD account under parental guardianship who will be the supervisor of your finances

Axis Bank RD: Premature Withdrawal

Axis Bank Bank allows users to withdraw money from their RD account before maturity i.e. before the tenure finishes. However, partial withdrawal of the amount is not allowed.

Tax benefits on Axis Bank RD

All Recurring Deposits, including Recurring Deposit account in Axis Bank, are liable to be taxed under the Income Tax Act 1961. The money that is invested in the RD account becomes part of the investor’s taxable income for a given financial year and TDS (Tax Deducted at Source) at 10% is deducted on the interest earned (only if interest amount exceeds Rs. 10,000 for the financial year). You can save TDS on your RD returns by filling either Form 15G or Form 15H.

Conditions for submitting Form 15G:

  • You must be an individual or HUF
  • You must be a Resident Indian
  • You should be less than 60 years old
  • Tax calculated on your Total Income is nil
  • The total interest income for the year is less than the minimum exemption limit for that year, which is Rs 2,50,000 for the financial year 2016-17

Conditions for submitting Form 15H:

  • You are an individual
  • You must be a Resident Indian
  • You are 60 years old or will be 60 years old during the year for which you are submitting the form
  • Tax calculated on your Total Income is nil

Documents Required to Open Axis Bank RD Account

1. Proof of Identity

  1. Address proof
  • Passport
  • Telephone bill
  • Electricity bill
  • Bank Statement with Cheque
  • Certificate/ ID card issued by Post office

Types of Recurring Deposit Offered by Axis Bank

Axis Bank Bank offers different types of Recurring Deposit schemes for the benefit of its users. The most common of this is the Regular RD scheme.

Regular RD: If you are looking to save for the future by investing regular monthly amounts, the RD scheme by Axis Bank can be a great help. The tenure for this account starts at a minimum of 6 months, which can be increased to a maximum of 10 years. The minimum monthly investment amount can be deposited in multiples of Rs. 10 per month.

RD Interest Rates in India

The RD interest rate in India can vary from bank to bank and depends on the kind of RD scheme chosen, the tenure of deposit, and the monthly deposit amount. Generally, the interest rates are higher when the RD tenure is above 15 months. Also, some banks may offer high RD interest rates for senior citizens and women.

Similar Banks Offering RD

State Bank of India HDFC Bank ICICI Bank Axis Bank
Indian Bank RBL Bank IDBI Bank IDFC Bank
Corporation Bank Andhra Bank PNB Bank Canara Bank
Union Bank of India Central Bank Bank of India Bank of Baroda
Syndicate Bank Allahabad Bank Kotak Mahindra Bank

File Income Tax Return Yourself for FREE

Start Your Tax Return