The Axis Bank Tax saver fixed deposit falls in line with the finance bill passed in 2006 wherein tax benefits were announced by the government for term deposits with a tenure greater than 5 years. The tax saver fixed deposits offered by Axis Bank do not allow for premature withdrawal and hence the lock in period of this scheme is 5 years so as to enable it to fall under tax exemption. The deposit will reach maturity in 5 years as well. Axis Bank fixed deposit rates are quite competitive and is on the same level withy industry standards for fixed deposits. Other than tax saver deposits, the bank also offers a host of deposits options including the Axis Bank Encash 24 Flexi Deposit and NRI deposit schemes such as NRE and NRO FDs.
Given below are the revised Axis Bank Tax Saver fixed deposit rates with effect from June 8, 2018 for regular and senior citizens:
|Tenure||Regular FD rate (per annum)||Senior citizen FD rate (per annum)|
The Axis Bank tax saver fixed deposit has a term of 5 years and to provide tax benefits the lock in period of this deposit is also 5 years. As such the interest rates provided are 7.00% for regular depositors and 7.50% p.a. for senior citizens. Both Individual and joint deposit holders are required to give a written declaration to nominate persons in case of their demise. In case of the unfortunate demise of a deposit holder, the premature payment will be made out to the nominees.
The eligibility criteria to apply for the Axis Bank tax saver fixed deposit are as follows
|Interest Rate||Tenure||Type of scheme||Investment Amount|
|7.00% for regular depositors and 7.50% for senior citizens||5 years||Reinvestment, quarterly, monthly||From Rs.100 to Rs.1.5 lakh|
Step 1: Login to the Axis Bank internet banking portal
Step 2: In the home screen, choose the deposit option
Step 3: Choose the ‘Create Recurring Fixed Deposit’ option and fill all necessary details
Step 4: Verify all details and submit the same.
Step 5: After the Fd has been created a mail will be sent to the customer on his/her registered email id.
One can also apply for an Axis Bank FD by visiting the nearest bank branch.
1. What are the types of Schemes available under the tax saver fixed deposit?
The type of schemes available under the Axis Bank Tax saver fixed deposit are TDGRI which is a reinvestment type and TDGQI which is a quarterly interest type of scheme
2. Does the tax saver fixed deposit allow for early withdrawal?
No. To provide tax benefits the policy does not allow early withdrawals and has a lock in period equal to the term of 5 years
3. What are the requirements for an Individual to open a tax saving fixed deposit?
An individual must be over the age of 18 years and must have a PAN number to open an individual deposit. In cases of joint deposits, the first holder should be an adult over the age of 18 years and the second or third depositor can be a minor. In cases of joint deposits, the deduction from income under section 80c will be available only to the first deposit holder who must have a PAN number
4. Can one secure a loan against the deposit?
No. Depositors cannot pledge the term deposit against a loan
5. What are the type of deposits available in this scheme?
The tax saver offers both individual and joint deposits
Useful Information on Axis Bank Fixed Deposit