Axis Recurring Deposit Interest Rates

Axis Bank Recurring Deposit

Axis Bank Recurring Deposit

A Recurring Deposit (RD) is a form of a term deposit which allows you to deposit a fixed amount on a regular basis with your bank, and earn interest income on it. It is similar to a Fixed Deposit (FD) where you enjoy a higher rate of interest than a savings account for the same principal amount.

The main difference between an FD and an RD is that a recurring deposit allows you to make ongoing periodic investments in the deposit, whereas in a fixed deposit, you need to deposit the entire lump amount at the time that you open the FD account.

Advantages to opening an RD account:

  • Ideal for people who cannot deposit a large initial lump sum, but want to deposit small amounts on a regular basis.
  • Can be opened with a small minimum amount.
  • Lump sum received at maturity, similar to an FD
  • The interest rate is higher as compared to an ordinary savings bank account
  • Interest rate earned is generally equal to that of an FD
  • Flexible tenures to suit the budget of the individual
  • Recurring Deposit Interest rate is fixed so you are assured of a fixed return
  • Loan / overdraft facility available with some banks.

Disadvantages:

  • If you are in an urgent need for cash and need to break the RD, you may have to pay a penalty and the interest outcome may be affected.
  • The interest earned might be lower than other, riskier, forms of investment, say investing in mutual funds, etc. But the money is secure from market fluctuations.

Axis Bank Recurring Deposit

An RD in Axis Bank instills a habit of regular savings, where in you can invest a fixed amount every month for a fixed number of months. You can make fixed monthly installments to an Axis Bank recurring deposit scheme either by a Standing Order, ECS mandate or by regular direct remittance.

Features of Axis RD Account

  • Allows you to safely deposit small amount of money on a regular basis rather than a bulky one-time payment at the time of opening the RD.
  • Ideal for people with a regular, steady income who may not be able to spare enough money for the minimum amount to open an FD.
  • Flexible tenure – you can choose tenures which can range from a few months to several years.
  • Enables benefits with a short minimum tenure of 6 months only
  • Offers a higher rate of interest than a savings bank account—similar to an FD—but with a smaller ongoing investment.
  • Is a safe, low-risk form of investment and free from fluctuations.
  • No premature withdrawal penalty on NRE Term Deposits.

Types of Recurring Deposits Offered by Axis Bank:

Regular Recurring Deposit:

  • Minimum Opening Balance for Axis RD account: Rs. 500 and thereafter in multiples of Rs. 500
  • Preferential interest rate for senior citizens
  • TDS on interest is applicable
  • Deposit period: Minimum 6 months to a maximum of 120 months
  • Earn up to 300 eDGE Loyalty Reward points when you open a Recurring Deposit of Rs.2000 or more and redeem them for exciting gifts on the online Axis Bank catalogue.
  • Premature Closure of RD Allowed

Axis Recurring Deposit Interest Rates

Axis bank RD interest rate is similar to rates offered for FD accounts. You can get the best rates for an Axis Bank Recurring Deposit by investing in any of its RD schemes. Following is an overview of Axis bank RD interest rates including Axis Bank Short-Term RD Interest Rates. For the latest and accurate RD interest rates in Axis, it is advisable to check with the bank directly.

Axis bank recurring deposit interest rates 2015 – 2016

The current RD Interest rate is 7.50% for normal Indian residents including minors and HUF. Contact the bank directly for the revised and up to date interest rate.

Axis Bank Senior Citizen RD Interest Rates

Senior citizens enjoy preferential rates, i.e., 0.50% more on the interest rate as applicable for a normal citizen of India.

Axis Bank Recurring Deposit Calculator:

You can make use of the Axis Bank RD Calculator to compute the interest and the maturity earned on your invested amount. Using an RD Calculator is easy—all you need to do is enter the amount you want to invest monthly and the calculator will provide the maturity amount that you get at the time of maturity of the Recurring Deposit.

Using an RD calculator helps you visualize the maturity amount and accordingly decide how much you want to invest. You can try various investment amount options and opt for the one that is most suited to your budget and helps achieve your financial goal.

Apply for Axis Bank Recurring Deposit

You can apply for an RD in Axis Bank in the following ways:

  • If you are an existing customer, log on to internet banking and go to the accounts section  deposits. Select ‘Create Recurring Deposit’ option. Fill in the required account and nominee details. Upon confirmation, the desired selected amount will be debited from your savings account and you will get an online receipt for the Recurring Deposit booked. The value date for opening of the deposit and the rate applicable will be as per the day on which the savings account is debited.
  • If you are a senior citizen looking to avail preferential rates, you can contact your nearest Axis Bank Branch.
  • If you are a new customer, you can call the 24 x 7 customer care number at: 1 800 209 5577 or 1 800 103 5577
  • You can also visit your nearest Axis Bank branch to have your recurring deposit opened.

Axis Bank RD FAQs

What is the minimum amount required to open an RD with Axis?

The minimum opening balance for a regular recurring deposit with Axis bank is Rs. 500.

What is the minimum and maximum deposit period?

The minimum deposit tenure is 6 months and the maximum period is 10 years.

How do I apply for a regular recurring deposit?

You can apply for a regular recurring deposit in any of the following ways:

  • You can open a Regular Recurring Deposit online through NetBanking.
  • If you are a new customer, you can call their customer care service or visit your nearest branch and submit the Deposit Account form along with the required documentation.

What is the documentation required to open an RD account?

You will require the following documents:

  • Filled-in application form
  • Passport size photograph
  • Proof of residence, ID proof
  • PAN Card, Standing Instruction Mandate form
  • Introduction letter from an existing customer of Axis Bank (if required)
  • Any other KYC documents as required by the bank