Recurring Deposits (RD) are a popular savings instrument in India, offering individuals a disciplined approach to saving money. Axis Bank, one of India’s leading private sector banks, provides attractive RD interest rates, making it a preferred choice for many savers. This comprehensive guide will provide you with detailed information on Axis Bank RD interest rates, the benefits of opening an RD account with Axis Bank, how to calculate the interest and more.
An Axis Bank Recurring Deposit (RD) account allows customers to deposit a fixed amount of money every month for a predetermined period. The bank pays interest on the deposited amount, which is compounded quarterly. At the end of the tenure, the customer receives the maturity amount, which includes the principal and the interest earned.
Axis Bank offers competitive interest rates on RD accounts, which vary based on the tenure of the deposit. Here is a detailed breakdown of the interest rates for different tenures:
These rates are subject to change based on RBI regulations and other economic factors. It is advisable to check the latest rates on the Axis Bank website or visit a branch for the most accurate information.
You may want to know about Yes Bank RD Interest Rates
To help customers estimate their returns, Axis Bank provides an Axis Bank RD calculator on its website. The calculator allows you to input the monthly deposit amount, tenure, and applicable interest rate to calculate the maturity amount. Here’s how you can use the Axis Bank RD interest rates calculator:
The calculator provides a clear picture of the returns, helping you plan your investments better.
Axis Bank offers flexible tenure options ranging from 6 months to 10 years, allowing you to choose a savings period that suits your financial goals, whether short-term or long-term.
Axis Bank provides attractive interest rates on RD accounts, typically similar to fixed deposit rates, ensuring steady growth on your monthly savings.
You can start an RD with Axis Bank with a minimum deposit of just ₹500, making it accessible to individuals from various income brackets who want to save regularly.
Axis Bank allows you to open and manage your RD account entirely online through net banking or the mobile app, offering a hassle-free experience without needing to visit a branch.
With Axis Bank, you can set up an auto-debit facility from your savings account, ensuring that your monthly deposit is made on time without any manual intervention.
Axis Bank offers loans against your RD account balance, allowing you to access up to 90% of the RD value in emergencies without closing your account, maintaining your savings habit.
Axis Bank allows you to choose the deposit amount based on your financial capability, with the flexibility to increase it in multiples of ₹10, enabling more personalized savings plans.
You can assign a nominee to your RD account at the time of opening, ensuring that the maturity proceeds go to your beneficiary in case of unforeseen circumstances.
The interest on your Axis Bank RD is compounded quarterly, enhancing the growth of your savings by earning interest on both your principal and accumulated interest over time.
You may also want to know Union Bank RD Interest Rates
Opening a Recurring Deposit (RD) account in Axis Bank is a straightforward process, offering both online and offline methods. Here is a detailed step-by-step guide on how to open an RD account with Axis Bank:
Before opening an RD account, ensure you meet the eligibility criteria:
To open an RD account offline, visit any Axis Bank branch with necessary documents like identity and address proof (Aadhaar card, PAN card, etc.). If you’re an existing customer, you can use your savings account details.
Request the RD account opening form from the bank. You’ll need to fill in details like your monthly deposit amount, the tenure (ranging from 6 months to 10 years), and other personal details such as name, address, and contact information.
Along with the form, submit KYC documents:
After submitting the documents, make the first deposit for your RD. The minimum deposit is ₹500, and you can increase it in multiples of ₹10. This amount will be auto-debited from your linked savings account every month.
Once the account is set up, you will receive a passbook or confirmation from the bank containing your RD account details, including the monthly deposit, tenure, and applicable interest rate.
Axis Bank offers the convenience of opening an RD account online via Net Banking or the Mobile App, making the process faster and more accessible.
Axis Bank’s Mobile Banking App provides an easy way to open an RD account on the go. Here’s how:
Once your RD account is opened, you can easily manage and track it using:
Axis Bank offers special Recurring Deposit interest rates for senior citizens, which are typically higher than the standard rates. Senior citizens can earn an additional interest rate of 0.50% per annum over the regular rates. This additional benefit makes RD accounts a preferred investment option for senior citizens seeking stable and higher returns.
Axis Bank also offers RD accounts for Non-Resident Indians (NRIs). The interest rates for NRI RD accounts are similar to those offered to resident Indians. NRIs can open RD accounts in both Indian Rupees (INR) and foreign currencies. The interest earned on NRI RD accounts is fully repatriable, making it a convenient investment option for NRIs.
The interest earned on Axis Bank RD accounts is subject to tax under the Income Tax Act, 1961. The interest income is added to the account holder’s total income and taxed as per their applicable income tax slab. Additionally, if the interest earned exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year, Axis Bank will deduct Tax Deducted at Source (TDS) at 10%. However, account holders can submit Form 15G/15H to request non-deduction of TDS if their total income is below the taxable limit.
Axis Bank RD interest rates are competitive when compared to other banks. Here is a brief comparison with a few other leading banks:
While the rates are fairly similar across banks, the choice of bank may depend on factors like customer service, online facilities, and additional benefits like loan options.
To maximize returns on your Axis Bank RD account, consider the following tips:
Axis Bank RD accounts are an excellent investment option for individuals looking to save systematically and earn assured returns. With competitive interest rates, flexible tenures, and various benefits, Axis Bank RD accounts cater to the diverse needs of savers. By understanding the current Axis Bank RD interest rates, using the RD interest rate calculator, and following best practices, you can maximize your returns and achieve your financial goals.
For the latest updates and personalized advice, consider visiting your nearest Axis Bank branch or checking the official Axis Bank website.
The minimum tenure for an Axis Bank RD account is 6 months.
No, the monthly deposit amount is fixed at the time of opening the account and cannot be changed.
Yes, premature withdrawal is allowed but may attract a penalty and reduced interest rate.
Yes, late deposit charges may apply if the monthly installment is not paid on time.
Yes, you can open multiple RD accounts in Axis Bank, each with different tenures and deposit amounts.
Get the link to download the App
