Understanding Interest Rates on Fixed Deposits in Axis Bank

Fixed deposits in Axis Bank are a popular savings option, offering a fixed interest rate for a specified period. The interest rates on fixed deposits in Axis Bank vary based on the deposit amount and tenure.

For instance, a deposit of ₹5,000 for a 1-year tenure attracts an interest rate of 5.50% per annum. The bank also offers a higher interest rate of 6.25% per annum for a deposit of ₹10,000 for the same tenure.

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Axis Bank offers a variety of fixed deposit plans to cater to different customer needs.

You can choose from three main plans: Axis Bank Fixed Deposit Plus, Axis Bank Fixed Deposit, and Axis Bank Tax Saver Fixed Deposit.

Each plan has its own unique features, but they all offer a secure and stable way to grow your savings over time.

Here are the names of the FD plans offered by Axis Bank:

Calculating Interest Rates is a breeze with Axis Bank's FD calculator. You can accurately estimate your maturity amount, including accrued interest, by entering your desired investment amount, chosen FD interest rate, and preferred tenure.

The calculator takes into account the power of compounding, which means interest earned on interest boosts your overall returns. For instance, a customer who books a fixed deposit of ₹ 20,000 for 10 years at 7.25% interest with quarterly compounding can expect a maturity amount of ₹ 41,000.

To give you a better idea, here's a breakdown of the interest earned on a ₹ 20,000 deposit over 10 years at 7.25% interest with quarterly compounding:

Calculating interest rates for medium to long term fixed deposits can be a bit complex, but don't worry, I've got the lowdown.

The duration of a long term fixed deposit can range from 1 year to 10 years. This means you can choose a deposit period that suits your financial goals.

If you're depositing less than 1.5 Crore, the rate of interest is between 5% to 7.75%. This is a decent return on your investment, considering the security of a fixed deposit.

Additional reading: Union Bank of India Fixed Deposit Rates

For senior citizens depositing less than 1 Crore, the rate of interest ranges from 7.50% to 7.90%. This is a great option if you're looking for a slightly higher return.

Here's a breakdown of the interest rates for different deposit amounts:

Remember to check the terms and conditions before making a deposit, as interest rates may vary depending on the bank and the specific deposit scheme.

To use a calculator, start by entering the principal amount, which is the initial amount you want to invest in the FD. This can range from Rs. 10,000 to no limit, depending on the bank's policies.

Next, choose the tenure, or the period for which you want to invest, in years, months, or days. Banks offer varying interest rates based on the tenure, with longer tenures often resulting in higher interest rates.

Select the interest rate applicable for your chosen scheme, which can be regular, tax savings, or senior citizen. You can find current rates on the bank's website, and be sure to tick the 'Senior Citizen' box if applicable to get higher interest rates.

Decide on the frequency of compounding, which can be monthly, quarterly, half-yearly, or annually. More frequent compounding leads to higher returns, but keep in mind that Axis Bank calculates quarterly interest on its fixed deposits.

Finally, choose the 'Cumulative' interest payment option if you want the interest to be reinvested with the principal for higher returns. Then, click 'Calculate' to see the maturity amount, interest earned, and any applicable tax deductions.

Here's a summary of the key steps:

The benefits of fixed deposits in Axis Bank are numerous and attractive. One of the main advantages is that it provides lucrative returns on the deposited amount.

You can start with a minimum deposit of ₹ 5,000 if you book it via Internet Banking or Mobile App, making it easily accessible to many customers.

Another benefit is the flexibility of tenure, ranging from 7 days to 10 years, allowing you to choose a plan that suits your needs.

Senior citizens get additional interest paid on their deposits, a nice gesture from the bank.

The automatic rollover facility (Auto-Renewal) ensures that your deposits continue to earn interest without any hassle.

The online booking convenience makes it easy to open and manage your fixed deposits from the comfort of your home.

Here's a summary of the benefits:

You can open a Fixed Deposit account with a minimum investment amount of ₹ 5,000, and there's no upper ceiling on the maximum investment amount.

The tenure for a Fixed Deposit can range from 7 days to 10 years, giving you flexibility to choose the period that suits you best.

To give you an idea of the different plans available, here's a brief overview of the minimum investment amounts:

It's worth noting that some plans have a penalty-free premature withdrawal option, allowing you to withdraw your deposit before the maturity date without incurring a penalty.

So, you're wondering what a fixed deposit is? A fixed deposit, also known as a time deposit, is a type of savings account that lets you deposit a fixed amount of money for a fixed period of time, usually ranging from a few days to several years.

The minimum investment amount for a fixed deposit is ₹ 5,000, which is a relatively low threshold that makes it accessible to many people. You can deposit up to ₹ 5,000 to get started.

One of the benefits of a fixed deposit is that there is no upper ceiling on the maximum investment amount, so you can deposit as much as you want. This makes it a great option for those who want to save a large sum of money.

The tenure for a fixed deposit can range from 7 days to 10 years, giving you a lot of flexibility in terms of how long you want to lock up your money. You can choose the tenure that suits your needs.

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If you need to withdraw your deposit before the maturity date, you can do so, but be aware that you'll be charged a penalty of 1% below the card rate. This is a trade-off for the flexibility to access your money before the fixed period ends.

Here are the key details to keep in mind when it comes to fixed deposits:

You can book a fixed deposit with as little as ₹ 5,000, and the frequency of interest payout is up to your discretion.

The bank pays interest at monthly and quarterly intervals, giving you flexibility in your investment. You can even reinvest the interest to earn higher returns.

The minimum investment amount varies depending on the channel you use to book the deposit - ₹ 5,000 if done via Internet Banking or Mobile App, and ₹ 10,000 if done via a branch.

There is no upper ceiling on the maximum investment amount, so you can invest as much as you like.

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You can choose the tenure of your fixed deposit, ranging from 7 days to 10 years.

The bank deducts TDS as per the prevailing income tax regulation.

You can opt for premature withdrawal, but be aware that you may not get the full interest.

The interest payout frequency options include monthly and quarterly payout or quarterly compounding.

Here are the key details of Axis Bank's fixed deposit plans:

Note that the eligibility criteria and interest rates vary across plans.

The Reserve Bank of India's policies have a significant impact on interest rates, including those on fixed deposits. RBI guidelines can change the cash reserve ratio and repo rate, affecting interest rates across all banking instruments.

Recession can lead to a decrease in fixed deposit interest rates. During a recession, RBI releases funds into the market, lowering the rates on cash reserves to provide banks with additional liquidity.

Inflation, surprisingly, has a positive impact on fixed deposit interest rates. This is because in times of high inflation, people are more likely to deposit their money in fixed deposits to earn a higher interest rate.

The current state of the economy also affects interest rates. In a booming economy, people are more willing to take credit, leading banks to offer higher interest rates on fixed deposits to attract more funds from depositors.

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If you're planning to invest below ₹ 5 Crore, you'll want to know the interest rates that apply to your investment.

For investments below ₹ 2 Crore, the interest rates range from 3.50% to 4.25% per annum, depending on the tenure of your investment.

The interest rates for investments between ₹ 2 Crore and less than ₹ 5 Crore are slightly higher, ranging from 4.00% to 4.90% per annum.

Here's a breakdown of the interest rates for investments below ₹ 5 Crore:

The Reserve Bank of India's policies have a significant impact on fixed deposit rates. As per RBI guidelines, changes in the cash reserve ratio and repo rate affect interest rates on all banking instruments, including fixed deposits.

During a recession, interest rates on fixed deposits tend to decrease. This is because RBI releases funds into the market to maintain liquidity, which banks use to lower their rates on fixed deposits.

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Inflation has a positive impact on fixed deposit interest rates. This means that as inflation rises, interest rates on fixed deposits tend to increase as well.

The current state of the economy also plays a crucial role in determining fixed deposit rates. In a booming economy, people are more willing to take larger credit, which banks respond to by offering higher interest rates on fixed deposits to attract more funds from depositors.