Axis Bank’s Recurring Deposit (RD) scheme allows you to make regular monthly investments. If you are trying hard to save some pennies, opening an RD account will be the ideal solution. Here, we give you all the details you need to know about Axis Bank RD schemes.

1. Recurring Deposit Interest Rates 2021 of Axis Bank

The interest rates were updated on 22 December 2020.

Deposit Tenure

Interest Rate for Regular Customers (% p.a.)*

Interest Rate for Senior Citizen Customers (% p.a.)*

6 months

4.40

4.65

9 months

4.40

4.65

1 year

5.15

5.80

1 year 3 months

5.10

5.75

1 year 6 months up to 1 year 9 months

5.25

5.90

2 years

5.25

6.05

2 years 3 months

5.40

6.05

2 years 6 months up to 4 years 9 months

5.40

5.90

5 years

5.50

5.90

5 years 3 months up to 10 years

5.50

6

*Interest rates are subject to change from time to time.

2. Different Types of Axis Bank RD Schemes

Recurring Deposit:

The account allows you to build savings through systematic monthly deposits in the account over a specified period. You can earn a higher interest rate based on the deposit amount and tenure. The minimum deposit amount is Rs.500 with the minimum tenure being six months. Also, you may receive Axis eDGE rewards on opening the account.

3. Axis Bank RD Special Features and Benefits

  • The minimum monthly contribution is as low as Rs.500 to open an RD account.
  • Earn higher interest rates based on the instalment amount and deposit period.
  • Minimum deposit tenure allowed is six months, and the maximum is 10 years.
  • Premature withdrawal is allowed subject to certain conditions.
  • Delayed instalment payment beyond the calendar month may attract penalties.
  • Nomination facility is available.

4. Basic Eligibility Criteria for Axis Bank RD

  • Indian residents
  • Senior citizens
  • Minors under the supervision of parents/guardians
  • Hindu Undivided Families (HUFs)
  • Sole proprietorship
  • Trusts
  • Associations and clubs
  • Partnership firms

Documents Required

Individuals, HUFs, and Sole proprietorships

  • Valid passport, driving license, PAN card, or voter ID
  • Utility bill, bank statement, or other documents that can work as address proof
  • A photograph

Trusts, Associations, or Clubs

  • Copy of Trust Deed
  • Copy of registration certificate
  • Copy of the resolution of the trustees
  • Authorisation letter from the members to open the account
  • Photographs of the members operating the account
  • By-laws of the association
  • Copy of the resolution by the board authorising the members concerned to open and operate the account
  • Photographs of the members operating the account

Partnership Firm

  • Partnership Deed
  • Letter from partners approving the persons on opening and operating the account
  • Photographs of the persons operating the account

5. Tax Benefits on Axis Bank Recurring Deposit

The bank will deduct the applicable tax as per the prevalent income tax regulations. Further, if the income interest on fixed deposits and recurring deposits across all branches exceed the threshold limit of Rs.40,000 per financial year, then tax will be deducted from the existing FD/RD account balance at the relevant time under Section 194A(3)(i)(a). The limit for senior citizens is Rs.50,000 per financial year.

If your annual income is much below the basic exemption limit, you may submit Form 15G/15H to the bank at the stipulated time to request the bank not to deduct tax at source.

6. RD Interest Rate Calculator

ClearTax’s RD calculator allows you to know the returns you can expect by investing a specific amount in RD account over a period of time.

7. Frequently Asked Questions (FAQs)

Q. How is interest calculated for RD accounts?

A. The interest in RD accounts is compounded quarterly. Therefore, you can expect higher returns as compared to simple interest-based saving products.

Q. What happens if I delay monthly instalment payments?

A. You are allowed to make instalment payments until the end of the calendar month in which the payment is due. If the payments are delayed further, a penalty will be applicable at Rs.10 per Rs.1,000 per month over the delayed period. This applies to accounts that are opened on or after 9 August 2016. For accounts opened before this date, the penalty applicable for payment delay beyond the calendar month will be at the existing Business Prime Lending Rate + 4% over the delayed period.

Q. How can I open an RD account with Axis Bank?

A. You can follow one of the methods mentioned below to open an RD account with Axis Bank:

  • Visit the nearest Axis Bank branch and seek help from the representatives.
  • Log on to the internet banking platform, select the ‘Create Recurring/Fixed Deposit’ option, and fill in the required details to open the account.
  • Log into your account on the bank’s mobile banking app, select ‘Open RD’ option, and provide the necessary details.

Q. Can I choose any tenure for an RD account of my choice?

A. Yes. Axis Bank allows you to choose the deposit tenure of your convenience. However, the tenure must be in the multiples of three months with the minimum tenure of six months.

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