Axis Bank RD Interest Rates

Introduction

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.

What is an Axis Bank Recurring Deposit (RD) Account?

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.

Current Axis Bank RD Interest Rates

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:

• 6 months to less than 1 year: 5.75% per annum
• 1 year to less than 2 years: 6.25% per annum
• 2 years to less than 3 years: 6.50% per annum
• 3 years to less than 5 years: 6.75% per annum
• 5 years and up to 10 years: 7.00% per annum

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

Axis Bank RD Interest Rates Calculator

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:

1. Visit the Axis Bank official website: Navigate to the ‘Calculators’ section under the ‘Deposits’ tab.
2. Select the RD Calculator: Choose the Recurring Deposit Calculator from the list.
3. Enter the details: Input the monthly deposit amount, tenure (in months), and the current interest rate.
4. Calculate: Click on the ‘Calculate’ button to see the maturity amount.

The calculator provides a clear picture of the returns, helping you plan your investments better.

Benefits of Opening an RD Account in Axis Bank

1. Flexible Tenure Options:

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.

2. Competitive Interest Rates:

Axis Bank provides attractive interest rates on RD accounts, typically similar to fixed deposit rates, ensuring steady growth on your monthly savings.

3. Low Minimum Deposit:

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.

4. Convenient Online Setup:

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.

5. Auto-Debit Facility:

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.

6. Loan Facility Against RD:

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.

7. Tax Bmizable Deposit Amount:

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.

9. Nomination Facility:

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.

10. Quarterly Compound Interest:

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

How to Open an RD Account in Axis Bank?

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:

1. Eligibility Criteria

Before opening an RD account, ensure you meet the eligibility criteria:

• Individuals: Anyone with a valid savings account in Axis Bank can open an RD account.
• Joint Accounts: Joint account holders can also open an RD account.
• Minors: RD accounts can be opened for minors, under the guardianship of a parent or guardian.

2. Offline Process – Open an Axis Bank RD Account at a Branch

Step 1: Visit the Nearest Axis Bank Branch

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.

Step 2: Fill the RD Application Form

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.

Step 3: Submit KYC Documents

Along with the form, submit KYC documents:

• Identity Proof: Aadhaar card, PAN card, passport, or voter ID.
• Address Proof: Utility bill, Aadhaar, passport, or driving license.

Step 4: Make the Initial Deposit

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.

Step 5: Receive RD Passbook/Account Details

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.

3. Online Process – Open RD Using Axis Bank Net Banking

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.

1: Log in to Axis Bank Net Banking

• Visit the Axis Bank website and log in to your Net Banking account using your customer ID and password.
• If you don’t have access to Net Banking, you can register online by providing your account number, debit card details, and mobile number.

2: Navigate to ‘Deposits’ Section

• Once logged in, click on the ‘Deposits’ tab available on the dashboard.
• Under this section, select the option to open a Recurring Deposit account.

3: Enter RD Details

• Choose the amount you want to deposit every month, starting from a minimum of ₹500.
• Select the tenure of the RD account, which can range from 6 months to 10 years.
• You’ll also have the option to choose the frequency of deposits (monthly), along with whether you want to auto-debit the amount from your savings account.

4: Nominee Details

• You can add a nominee while opening the RD account online. This ensures that the RD amount is transferred to the nominee in case of an unforeseen event.

5: Confirm and Set Up Auto-Debit

• Review all the details, including the tenure, monthly deposit, and interest rate offered by Axis Bank.
• Confirm the details and set up the auto-debit option from your linked savings account to ensure monthly deposits are made automatically.

6: Receive Confirmation

• After submitting the request, you will receive a confirmation via email or SMS, and the RD account will be activated. You can monitor your RD through the Net Banking portal or the mobile app.

4. Open RD via the Axis Mobile App

Axis Bank’s Mobile Banking App provides an easy way to open an RD account on the go. Here’s how:

1: Download and Log in to the Axis Mobile App

• If you don’t already have the app, download it from the Google Play Store or Apple App Store.
• Log in using your registered mobile number, customer ID, and password.

2: Go to the ‘Deposits’ Section

• Navigate to the ‘Deposits’ section in the mobile app.
• Select the option to open a Recurring Deposit account.

3: Enter the Deposit Amount and Tenure

• Input the monthly deposit amount (starting from ₹500) and select the tenure, which can range from 6 months to 10 years.

4: Add Nominee

• You’ll have the option to add a nominee during the setup process.

5: Confirm and Make the Initial Deposit

• Review all details and confirm the setup. Your savings account will be debited for the initial deposit, and subsequent deposits will be auto-debited.

5. Managing Your RD Account

Once your RD account is opened, you can easily manage and track it using:

• Net Banking: Log in to Axis Bank’s Net Banking to check the status of your RD account, view deposits, and interest earned, and track the maturity amount.
• Mobile App: The Axis Mobile app allows you to view and manage your RD account on the go, making it convenient for customers to monitor their savings.

Axis Bank RD Interest Rates for Senior Citizens

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 NRI RD Interest Rates

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.

Tax Implications of Axis Bank RD Interest

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.

Comparison of Axis Bank RD Interest Rates with Other Banks

Axis Bank RD interest rates are competitive when compared to other banks. Here is a brief comparison with a few other leading banks:

• State Bank of India (SBI): Offers RD interest rates ranging from 5.75% to 6.50% per annum.
• HDFC Bank: Provides RD interest rates between 5.50% and 6.75% per annum.
• ICICI Bank: Offers RD interest rates from 5.50% to 6.75% per annum.
• Punjab National Bank (PNB): RD interest rates range from 5.50% to 6.60% per annum.

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.

How to Maximize Returns on Your Axis Bank RD Account

To maximize returns on your Axis Bank RD account, consider the following tips:

1. Opt for Longer Tenures: Longer tenures generally attract higher interest rates.
2. Regular Deposits: Ensure timely monthly deposits to avoid penalties and interest loss.
3. Leverage Senior Citizen Rates: If eligible, take advantage of the higher interest rates for senior citizens.
4. Use the RD Calculator: Plan your investments using the RD calculator to understand potential returns.
5. Reinvest Interest: Consider reinvesting the interest earned to compound your returns further.

Conclusion

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.