Saving up money with the intention of putting it in a fixed deposit can, at times, become a tedious task for the simple reason that every time you build up savings, something happens and all the money gets spent. But with the Encash 24 Flexi Deposits offered by Axis Bank, the task becomes much easier because it automatically takes money out of the account to create an FD. It even takes care of your financial needs because it fills up your account with money from the FD if it notices the balance going down.
Like most fixed deposits, this deposit may be available to all individuals, NRIs and even senior citizens.
Min: The minimum amount that can be invested in such a fixed deposit is Rs. 25,000.
Max: There is no cap on the maximum amount and can even exceed Rs. 5 crores
|How the scheme works||This fixed deposit is created in conjunction with a savings account. When the money in the savings account exceeds Rs. 25,000, the excess money is taken out of the account and put in a fixed deposit where it earns a higher interest rate. These deductions need no instructions from the account holder and happen automatically. The amounts that are deducted are also in multiples of Rs. 5,000.|
|Account refill||Another facility provided by this account is that of a refill for the savings account. With this facility, every time the account balance falls below Rs. 25,000, money from the FD will be transferred to the account from the FD in multiples of Rs. 5,000.|
|Rate of Interest||
Min: Since the minimum duration of these deposits are 6 months, the minimum interest rates will be 7.25% per annum.
Max: The maximum interest rates that can be earned on these deposits is 7.9% per annum.
Min: The minimum tenure that this FD can be opened for is 6 months.
Max: The maximum permissible tenure under this scheme is 5 years.
|TDS||The tax on the interest earned through these deposits is calculated by projecting the interest that could be earned based on the size of the deposit. It is then deducted from FD itself.|
|Auto renewal||The FDs created can be renewed for a period between 6 months and 5 years.|
The interest rates offered on this fixed deposit are the same as those offered on other term deposits and are:
|Tenure||Interest rates (per annum) For up to Rs. 5 crore (as of Dec 2015)|
|6 months to 9 months||7.25%|
|9 months to less than1 year||7.5%|
|1 year to less than 2 years||7.9%|
|2 years to less than 5 years||7.75%|
The interest rates can depend on the amount that is deposited in the FD too since FD that are in excess of Rs. 5 crore have an interest rate that can be slightly less. It is also worth noting that if you are a senior citizen you are entitled to get 0.5% extra interest over the prescribed rates. Interest rates can be revised by banks from time to time so it is best to confirm the latest interest rates before making any decisions.
If you wish to avail the senior citizen interest rates then you will have to provide a proof of age to the bank while opening the account.
If the account is in excess of Rs. 5 crore and was opened, or renewed, after May of 2014 then the interest rates will be 1% lower than the applicable interest rates.
Yes, the limit is the same as that for all fixed deposits. If the interest earned in a financial year is more than Rs. 10,000 then the account holder is liable to pay taxes.
No because the maximum tenure under the scheme is 5 years. You can, however, go in for the reinvestment option and choose a period between 6 months and 5 years.
Useful Information on Axis Bank Fixed Deposit