Axis Bank, the 3rd largest private sector bank in India, offers a wide range of banking products and services, including recurring deposits (RDs) with flexible tenures. The attractive RD interest rates enable several resident and non-resident customers of Axis Bank to generate a passive and stable source of income.
In this blog, we will walk you through a comprehensive guide on Axis Bank RD interest rates and other salient features of the RD scheme offered by the bank.
| Minimum Investment | ₹500 |
| Tenure | 6 months to 10 years |
| Interest Rates for General Citizens | 5.75% to 7.10% |
| Interest Rates for Senior Citizens | 6.25% to 7.75% |
| Loan Against Axis Bank RD | Not available |
| TDS on RD | Available |
Axis Bank RD Interest Rates 2024 Under ₹2 Crores
Check out the latest Axis Bank RD interest rates available for 2023.
| Tenure | Interest Rates for General Citizens | Interest Rates for Senior Citizens |
| 6 months to less than 7 months | 5.75% | 6.25% |
| 7 months to less than 8 months | 5.75% | 6.25% |
| 8 months to less than 9 months | 5.75% | 6.25% |
| 9 months to less than 10 months | 6.00% | 6.50% |
| 10 months to less than 11 months | 6.00% | 6.50% |
| 11 months to 11 months 24 days | 6.00% | 6.50% |
| 11 months 25 days to 364 days | 6.00% | 6.50% |
| 12 months to 12 months 4 days | 6.70% | 7.20% |
| 12 months 5 days to 12 months 10 days | 6.70% | 7.20% |
| 1 year 11 days to 1 year 24 days | 6.70% | 7.20% |
| 1 year 25 days to less than 13 months | 6.70% | 7.20% |
| 13 months to less than 14 months | 6.70% | 7.20% |
| 14 months to less than 15 months | 6.70% | 7.20% |
| 15 months to less than 16 months | 7.10% | 7.60% |
| 16 months to less than 17 months | 7.10% | 7.60% |
| 17 months to less than 18 months | 7.10% | 7.60% |
| 18 months to less than 2 years | 7.10% | 7.60% |
| 2 years to less than 30 months | 7.10% | 7.60% |
| 30 months to less than 3 years | 7.10% | 7.60% |
| 3 years to less than 5 years | 7.10% | 7.60% |
| 5 years to 10 years | 7.00% | 7.75% |
Note: The Axis Bank RD account interest rate is subject to change. Consult a bank representative or verify the interest rate from the official website before proceeding.
Features of Axis Bank Recurring Deposit Interest Rates 2023
Here are the salient features of the recurring deposit that you can avail by choosing Axis Bank RD interest rates.
- The tenure of Axis Bank RD ranges between 6 months and 120 months.
- You will need to deposit a minimum of ₹500 to open an Axis Bank RD account and benefit from it.
- Senior citizens can benefit from the additional 0.50% interest over the regular rates.
- A late penalty will apply to the account holders upon failing to pay the instalments on time.
- Premature withdrawals of Axis Bank RD are allowed. However, the bank does not offer a partial withdrawal facility.
How to Open an Axis Bank RD Account Online?
Individuals can avail the above-mentioned features of Axis Bank RD by opening an account via the Internet banking portal or the mobile banking app. Let’s find out how.
1. Internet Banking
Follow the steps to open an online RD account through the Axis Bank internet banking portal.
- Step 1: Visit the official website of Axis Bank.
- Step 2: Use your credentials to log in to your Internet banking account.
- Step 3: Click on the “Create Recurring Deposit” option and move to the application page.
- Step 4: Fill in your personal, nominee and bank account details.
- Step 5: Specify the amount that you want to deposit in your RD account.
- Step 6: Click on the “Submit” button after reviewing the details.
Upon completing the steps, the bank will open your RD account and issue you an RD receipt to confirm the booking. You will also receive a Recurring Deposit Advice copy on your registered e-mail ID.
2. Mobile Banking
You can also open an online RD account via the mobile banking app of Axis Bank. Here’s how to do so.
- Step 1: Log in to the mobile banking app using your credentials.
- Step 2: Select the “Deposit” option.
- Step 3: Click on the “Open RD” button. The application form will appear wherein you will need to enter your particulars and nominee details.
- Step 4: Enter your deposit amount.
- Step 5: Click on the “Submit” button.
The bank will process your application form and deposit the specified amount in your RD account. Upon successful opening, you will receive an email regarding the completion of the process.
How to Open an RD Account in Axis Bank Offline?
Axis Bank offers offline account opening facilities to its customers who are not comfortable with the online procedure of doing so. Follow the steps below to open an Axis Bank RD account offline and benefit from the attractive Axis Bank RD rate of interest:
- Step 1: Visit your nearest Axis Bank branch.
- Step 2: Request the representative for an RD account opening form.
- Step 3: Fill it out accurately with all the necessary details.
- Step 4: Submit the form along with the necessary documents.
- Step 5: Deposit the initial RD investment.
To determine the amount that you want to deposit in your Axis Bank, you can use a mathematical formula or an online calculator. This way, you can also figure out your returns based on your expected financial goals.
Axis Bank RD Interest Rates Calculation
Let’s find out how to calculate the interest earned from an RD investment based on Axis Bank recurring account interest rate.
1. Manual Calculation Using the Formula
For manual calculation of returns from your investment in RD, you can use the following formula.
A= P x (1+R/N) ^ (NT)
In this formula,
- P is the deposit amount
- A is the maturity amount
- R is the rate of interest
- N is the number of times the interest is compounded
- T is the RD tenure.
Let us now understand the formula with the help of an example. Suppose you deposit ₹1,000 in an RD scheme per month for 9 months at 6.00% interest rates. According to the formula,
A = 9000 (1 + 6/4) ^ (6 * 9/12) = ₹9,227.
By investing in this RD scheme, you will receive ₹9,227 as your maturity amount inclusive of the interest income.
Although easy, the manual calculation of interest using the formula might at times be tedious and time-consuming for some individuals. In such cases, they can use an online RD calculator.
2. Online Calculation Using Axis Bank RD Calculator
You can follow the below-mentioned steps to calculate interest through an online Axis Bank RD calculator.
- Step 1: Navigate to the official webpage of Axis Bank RD Calculator.
- Step 2: Tap on ‘Senior Citizen’ if you are above 60 years of age.
- Step 3: Enter the monthly investment amount. You can also use the slide bar to input the amount.
- Step 4: Enter tenure.
Once done, the estimated returns from your RD investment will automatically appear on the screen.
Axis Bank RD Account Eligibility Criteria
The following individuals are eligible to open an RD account and benefit from Axis Bank RD interest rates.
- Resident Indians
- Non-resident Indians
- Minors under the supervision of their legal guardian
- Senior Citizens
There can be some additional criteria that individuals might have to fulfil when opening an account. So, make sure to verify from the official website before proceeding.
Documents Required for Axis Bank RD Account
You will need to submit the following documents to open an Axis Bank recurring account:
In the Case of Resident Indians
Identity Proof Documents:
- PAN Card,
- Aadhaar Card,
- Driving Licence
- Ration Card
Address Proof Documents:
- Passport
- Electricity/Telephone Bill
- Bank Statement
In the Case of Non-resident Indians
- Valid passport specifying primary details of the applicant
- Proof of Indian and overseas address along with passport-sized photographs
- Proof of NRI status documents such as Work/Residence Permit, Employment/Residence Visa, or PAN card/Form 60.
Types of Axis Bank RD Accounts
Following are the two types of Axis Bank RD accounts that you can open:
This is the most common type of RD account offered by Axis Bank. Under this account, individuals cannot change the amount of monthly instalments once determined. To simplify the instalment payments, it comes with an auto-debit facility, linking the RD account with your savings account.
1. Domestic Axis Bank RD
- Minimum Deposit: ₹500
- Maximum Deposit: No maximum limit
- Tenure: 6 months to 120 months
- Interest Rate: 5.75% to 7.10% for general citizens and 6.25% to 7.75% for senior citizens
- Eligibility: Residents of India
2. NRE Axis Bank RD
The NRE Axis Bank RD is available for individuals settled abroad, seeking to invest their foreign earnings in India. Upon investing in this scheme, you will not have to pay any tax on the interest earned from your investments. It also offers additional benefits such as nomination, auto-renewal and repatriable facilities.
- Minimum Deposit: ₹1,000
- Maximum Deposit: No maximum limit
- Tenure: 12 months to 120 months
- Interest Rate: 6.70% to 7.10%
- Eligibility: Non-resident Indians, Persons of Indian Origin and Overseas Citizens of India
3. NRO Axis Bank RD
NRO Axis Bank RD allows non-resident individuals to seamlessly transfer funds from their savings accounts to pay the instalments on time. Additionally, there are several features like competitive exchange rates, free internet banking services, attractive interest rates and repatriability of funds, contributing to its popularity.
- Minimum Deposit: ₹1,000
- Maximum Deposit: No maximum limit
- Tenure: 6 months to 10 years
- Interest Rate: 5.75% to 7.10%
- Eligibility: Person of Indian Origin, Non-resident Indians, and Overseas Citizens of India
Axis Bank RD Premature Withdrawal Rules
Following are certain rules associated with the premature withdrawal of investment from Axis Bank RD accounts.
- In case of premature withdrawal of domestic RD, you will need to pay a penalty of 1% lower than the prevailing interest rates or 1% less than the contracted rates, whichever is lowest.
- If you withdraw the entire amount within 14 days of opening your Axis Bank RD account, you will not have to pay any penalty.
- There is no penalty levied on premature withdrawals of NRE/NRO Axis Bank RD.
Axis Bank RD Penalty
There are penalties associated with the Axis Bank RD schemes, in case of delayed payments. Take a look at them.
- If you have opened your Axis Bank RD account after 9th August 2016, you will need to pay a penalty of ₹10 for every deposit of ₹1,000 in case paid late.
- Existing customers will have to pay a penalty at prime lending rate + 4% due to delays in monthly instalment payments.
Apart from these, there are some additional charges that you will need to pay in case of premature withdrawal of your RD investment.
How to Close an Axis Bank RD Account Online?
There are usually two ways of closing your Axis Bank RD account online.
1. Via Internet Banking
Following are the steps to close an RD account via Internet banking.
- Step 1: Log in to your Internet banking account using your credentials.
- Step 2: Click on “Recurring Deposit” from the main page.
- Step 3: Click on “Choose Services”.
- Step 4: Select “Close or Partially Withdraw” from the available options.
- Step 5: Click on “Choose RD to be Closed”.
- Step 6: Enter your net security code.
- Step 7: Click on “Submit”.
Once done, the bank will process your request and close your RD account.
2. Via Axis Mobile App
Below are the steps that you can follow to close your RD account via the mobile app.
- Step 1: Log in to the app using your credentials.
- Step 2: Click on the “Recurring Deposit” option.
- Step 3: Tap on the “Close Recurring Deposit” option.
- Step 4: Enter your mPIN.
- Step 5: Click on “Submit”.
Once done, your RD closure request will be processed. You can also go for offline account closure in case you are not comfortable with the online process.
How to Close Axis Bank RD Account Offline?
Follow the given below steps to close your RD account offline without any hassle.
- Step 1: Visit the nearest Axis Bank branch.
- Step 2: Obtain an RD account closure form.
- Step 3: Fill it up carefully and attach the necessary documents.
- Step 4: Submit it.
Once done, your RD account will be closed and the balance will be transferred to your savings account.
TDS on Axis Bank RD
The interest earned from Axis Bank RD accounts is taxable, as per the Income Tax Act, of 1961. Axis Bank deducts TDS or Tax Deducted at Source based on your returns in one financial year.
However, an account holder can reduce the TDS burden by submitting the PAN details to the bank. The bank deducts 10% as TDS if an individual provides his/her PAN card. Upon failing to do so, the TDS rises to 20%.
Final Word
With the attractive Axis Bank RD interest rates, you can get adequate returns that will help you in wealth creation and reach your financial goals at the earliest. The RD scheme offered by the bank proves more effective when an individual starts investing at a younger age and accumulates substantial returns from their deposits.
FAQs
Yes, you can choose a nominee for your Axis Bank RD accounts. However, you can only select one nominee for your RD account.
No, you will need to select a minimum duration of six months to open an Axis Bank RD account.
Yes, you need to pay a penalty for withdrawing your deposits over ₹2 crores prematurely or within 14 days of opening your account.
No, you are not allowed to make partial withdrawals from your Axis Bank RD account. All account holders have to pull out the entire balance in one go and close the account.
No, you will need to deposit at least ₹500 to open your Axis Bank RD account. However, there is no upper limit to the amount that you can invest.
