Encash 24 Flexi Deposit from Axis Bank is a dual benefit fixed deposit (FD) account that provides the account holder the advantages of holding a savings account as well as that of an FD account. This is nothing but a type of savings-linked FD account. This will allow the customer to withdraw money from the term deposits account in case of a cash crunch. This is how an Encash 24 Flexi Deposit works:
Given below are the interest rates offered on Axis Bank Encash 24 Flexi Deposits with effect from June 1, 2018, for regular and senior citizen FDs:
|Tenure||Regular FD Rate (per annum)||Senior Citizen FD Rate (per annum)|
|6 months to less than 7 months||6.25%||6.75%|
|7 months to less than 9 months||6.25%||6.75%|
|9 months to less than 1 year||6.50%||7.00%|
|1 year to less than 14 months||7.10%||7.60%|
|14 months to 5 years||7.00%||7.50%|
|Tenure||High liquidity||Automatic Transfers|
|6 months - 5 years||Funds can be withdrawn at any point of time||Fund transfers will be made automatically to the FD account if the amount in the savings account crosses Rs.25,000|
To put it in simple words this is a type of dual benefit account. Let's say you have Rs.25,000 in your savings account and you make an additional deposit of Rs.5000 in the same account. The additional Rs.5,000 will be transferred automatically to a fixed deposit account and the remaining Rs.25,000 will be kept in the savings account. The minimum balance that has to be maintained in this type of savings account is Rs.25,000. On the other hand, if you want to withdraw money from your savings account, you can do so. For instance, if your savings account balance is Rs.25,000, and you withdraw Rs.5,000., to make up for this, Rs,5000, will be credited from the FD account to the savings account.
|Who can apply?||Documents required|
1. Are all customers of Axis Bank eligible to open this account?
Yes. Those with a savings bank account will be able to open a flexi deposit account easily with minimal documentation.
2. Will senior citizens get a higher interest rate?
3. Can the tenure of the deposit be extended beyond 5 years?
Unfortunately, the investment duration for this type of deposit cannot exceed 5 years.
4. Will the interest earnings be subject to tax?
Yes. TDS will be deducted as per prevailing tax norms.
5. Can those without a savings account open this account?
Useful Information on Axis Bank Fixed Deposit