If you are a customer of Axis Bank and looking to invest your money in a fixed deposit (FD) to earn good returns, this article will provide you with all the necessary information about Axis Bank FD. We will also explain how much return you can expect if you invest INR 1 lakh for 1 year in Axis Bank FD. So, let’s get started.
What is Axis Bank FD?
Fixed Deposit (FD) is a financial instrument where you can invest your money for a fixed tenure and earn interest on it. Axis Bank offers flexible tenure options, ranging from a minimum of 7 days to a maximum of 10 years.
Axis Bank FD Interest Rates for 2024
As of 2024, Axis Bank offers different interest rates depending on the amount and tenure of the FD. Here are the details:
- Short-Term FD (7-14 days): General Citizens: 3.00% annually, Senior Citizens: 3.50% annually
- Medium-Term FD (6 months): General Citizens: 5.75% annually, Senior Citizens: 6.25% annually
- 1-Year FD: General Citizens: 6.70% annually, Senior Citizens: 7.20% annually
- 18-Month FD: General Citizens: 7.10% annually, Senior Citizens: 7.60% annually
- 3-Year FD: General Citizens: 7.10% annually, Senior Citizens: 7.60% annually
- Long-Term FD (5-10 years): General Citizens: 7.00% annually, Senior Citizens: 7.75% annually
Axis Bank FD Interest Rate 2024: https://www.axisbank.com/docs/default-source/default-document-library/interest-rates/domestic-fixed-deposits-22-may-24.pdf
Returns on a 1-Year FD
Now, let’s calculate the return if you invest INR 1 lakh for 1 year in Axis Bank FD.
- Interest Rate for General Citizens: 6.70% annually
- Interest Rate for Senior Citizens: 7.20% annually
- If you are a general citizen: The interest on INR 1 lakh at 6.70% per year is INR 6,700. Total amount after 1 year = Principal + Interest = INR 1,00,000 + INR 6,700 = INR 1,06,700.
- If you are a senior citizen: The interest on INR 1 lakh at 7.20% per year is INR 7,200. Total amount after 1 year = Principal + Interest = INR 1,00,000 + INR 7,200 = INR 1,07,200.
Benefits of Investing in Axis Bank FD
- Safe Investment: FDs are considered one of the safest investment options as they offer guaranteed returns.
- Flexible Tenure: Axis Bank provides flexible tenure options ranging from 7 days to 10 years.
- Higher Interest Rates for Senior Citizens: Senior citizens get higher interest rates, which helps them earn better returns on their investments.
- Loan Against FD: Axis Bank also offers the facility to avail loans against your FD, ensuring liquidity in times of need.
- Tax Benefits: FDs with a tenure of 5 years or more are eligible for tax benefits under Section 80C of the Income Tax Act.
How to Open an Axis Bank FD?
Opening a Fixed Deposit in Axis Bank is a simple and straightforward process. You can do it through:
- Online Banking: Log in to your Axis Bank internet banking account, go to the FD section, and follow the instructions.
- Mobile Banking: Use the Axis Bank mobile app to open an FD.
- Visit Branch: You can also visit the nearest Axis Bank branch to open an FD by filling out the necessary forms and providing the required documents.
Documents Required
To open an FD with Axis Bank, you typically need the following documents:
- Identity Proof: PAN card, Aadhaar card, passport, etc.
- Address Proof: Utility bill, Aadhaar card, passport, etc.
- Bank Account Details: Existing Axis Bank account details for transferring funds.
Premature Withdrawal and Penalty
Axis Bank allows premature withdrawal of FDs; however, it may attract a penalty. The penalty is usually a reduction in the interest rate applicable. It’s advisable to check the specific terms and conditions regarding premature withdrawal with Axis Bank before opening the FD.
Investing in Axis Bank Fixed Deposit is a smart choice for those looking to earn steady and guaranteed returns. With flexible tenure options and attractive interest rates, especially for senior citizens, Axis Bank FD stands out as a reliable investment option. If you have surplus funds and want to grow your savings with minimal risk, consider investing in Axis Bank FD.
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