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Fixed Deposit Interest Rates

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Fixed Deposit (FD) interest rates are a pivotal factor when it comes to securing and growing your savings through Fixed Deposits. These deposits facilitate a disciplined saving habit and offer the advantage of earning considerable interest over a predetermined period. FD interest rates are linked to the FD tenure and the amount invested. The interest is paid out either at regular intervals or at maturity, depending on the option selected at the time of booking the FD.






Why invest in Fixed Deposits?

Secure investments: Fixed Deposits are ideal for risk-averse investors, offering safe and secure investment option with steady and pre-determined returns. They are also an optimal option for investors to balance out their risk against market-linked instruments.

Higher returns: Fixed Deposits generally provide higher returns than Savings Accounts, helping you reach your financial goals over various time horizons.

Flexibility: With tenures ranging from 7 days to 10 years, Fixed Deposits offer flexibility in terms of investment tenure. You can also choose your payout frequency, whether it is a single payout at maturity or regular monthly or quarterly payouts.

Variety: Axis Bank offer various Fixed Deposit options like Regular FD, Digital FD, Tax-Saver FD, Fixed Deposit Plus, and Auto FD to suit different financial goals. Additionally, senior citizens can benefit from FDs with special higher interest rates.


Important terms related to Fixed Deposit interest rates

Understanding the key terms associated with FD interest rates is crucial for maximising your investment returns. Here are some essential concepts to know:

Timely closure: This term signifies the process of maturity of the FD. If you hold the FD till maturity, you will get the principal sum plus the entire accrued interest.

Breaking the FD account: This means breaking the FD or withdrawing the amount before the maturity period. Premature withdrawals generally involve penalties, resulting in a reduced interest payout.

Partial withdrawal: This option permits you to withdraw a portion of the Fixed Deposit before maturity, typically in multiples of ₹1,000. You may utilise this option in case of any urgent financial need. But do note that this action may attract a 1% penalty. In the case of Axis Bank, for deposits below ₹5 crore opened or renewed on or after December 15, 2017, the initial partial withdrawal of up to 25% of the principal amount carries no penalty. Nevertheless, the remaining deposit continues to accumulate interest at the initially agreed rate.


Bank Fixed Deposit interest rates: Special features

Axis Bank Fixed Deposits offer more than just savings. Use them to optimise your financial strategy.

  • FDs offer higher interest rates than regular Savings Accounts, offering safe and secured returns.
  • Anyone can invest money in a FD, as the eligibility extends to all Indian residents, including minors and Hindu Undivided Families (HUFs).
  • Nomination in FD application ensures they can claim the deposit post account holder's demise, with valid death proof.
  • The sweep-in feature on FDs lets you link savings to FD, enabling the transfer of excess funds and earning FD interest on savings.
  • Axis Bank facilitates loans against FDs, giving access to a loan with interest rates marginally above the FD rates.

Frequently Asked Questions

To get monthly interest on a Fixed Deposit, choose the 'monthly payout' option when opening the FD. This is a useful feature if you are looking to earn a secondary source of income.

Interest from Fixed Deposits is taxable if it exceeds ₹40,000 (₹50,000 for senior citizens) per annum, under Section 194A of the Income Tax Act. It is taxed as 'Income from Other Sources'.

Typically, longer tenures offer higher FD interest rates; the highest rates for general and senior citizens are often for the deposits parked beyond 12 months.

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^ Premature withdrawal not permitted

* For terms & conditions and any other details, please contact your nearest Axis Bank Branch.

** Rates are subject to change without any prior notice.

*The Bank at its discretion, may disallow premature withdrawal of large deposits for amount Rs.5 crores and above, held by entities other than Individuals and Hindu Undivided Family (HUF).