Overview of Axis Bank
Formerly known as UTI Bank, Axis Bank is the third largest private sector bank in India. Headquartered in Mumbai, the shares of this bank are publicly traded on BSE and NSE. It is also listed on the London Stock Exchange(LSE), and operates across major countries in the Asian Geography.
Axis bank provides an array of banking products and services catering to the needs of individuals, corporates and business houses. In India, a massive footprint of 2,402 domestic branches and 12,922 ATMs define the steady operations of this bank.
Recurring Deposit (RD) From Axis Bank
The bank offers Recurring Deposit schemes that come with captivating features and benefits. For resident Indians, an RD scheme with minimum frills defines the portfolio, and a host of region based NRE/NRO deposit accounts are provided to Non-Resident Indians. The regular RD scheme is available at all banking branches whereas NRIs can sign up online via bank’s portal.
Recurring Deposit Schemes from Axis Bank
For Resident Indians
This RD scheme helps you to build a stable corpus over a period of time through monthly deposits for a fixed term. A depositor can begin investing in the scheme with a minimum amount of Rs.1,000 and can enhance the value in multiples of Rs.500 thereafter. The investment term can range from 12 months to 120 months.
For Non-Resident Indians(NRIs) - NRE/NRO Recurring Deposit
NRIs can open an RD account online, and transfer funds every month from the linked savings account with online tools. A vast tenure option greets NRIs which can range from 1 to 10 years. The depositor can start with a minimum investment of Rs.1,000 that can be extended in multiples of Rs.500 thereafter. This scheme is available for Indians residing in the Middle East, USA, Canada, Africa, U.K, Europe, Australia, Singapore and other significant regions/countries.
Features and Benefits of Axis Bank Recurring Deposits
RD For Resident Indians
- Deposits can be made in EMI’s starting at Rs.1,000 with enhancements in multiple of Rs.500. The installment amount once fixed cannot be altered.
- The period (term) of deposit should be for a minimum of 12 months which can stretch up to 120 months, in multiples of 12 months.
- The monthly installment amount should be paid before the last working day. For ease of management of the RD account, you can always set up an auto-debit facility linked to the savings account.
- If there is a delay in payment of the monthly instalment, Axis bank levies a penalty payable at the rate or PLR(Prime Lending Rate) plus 4% for the late period. For purpose of calculating penalty, fraction of the delay period in a month will be treated as a full month.
- All premature withdrawals come with a penalty where the interest rates applied is 1% lower than the prevailing rates, or 1% less than the contracted rate, whichever is lower. There is no penalty applicable for withdrawals from the RD account within 14 days from the time of opening.
NRE Recurring Deposit
- NRIs can open an RD account online by logging on to the internet banking facility. Indian residents travelling abroad for medical related issues, on excursion or business trip are not eligible to apply for this type of RD.
- Seafarers employed by Indian shipping companies, Indians residing in Pakistan, Bangladesh, Nepal and Bhutan are also not eligible without prior approval from the RBI.
- Monthly installments start at Rs.1,000 which can be enhanced in multiples of Rs.500 thereafter. Tenure option ranges from 1 to 10 years.
- Get competitive exchange rates on conversion of foreign currency into rupees along with attractive interest rates.
- Funds deposited in this RD scheme are fully repatriable and no taxes are applicable on interest earned in India.
NRO Recurring Deposit
- Features and benefits akin to the NRE Recurring Deposit are applicable to the NRO Recurring Deposit scheme.
- 24 hour access to your RD account by means of internet banking is available.
- Get the benefit of reduced taxes (TDS) under applicable provisions of DTAA.
Documentation For Opening an NRE/NRO Recurring Deposit Account
NRI(Non Resident Indian)
All the documents below in form of photocopies should be attested if the applicant is sending the paperwork to India, along with the account opening form. The attestation must be certified by a competent legal authority which includes any banker at your location abroad, notary or Indian Embassy.
- Valid passport which with pages that contain name, photograph, address, date of birth, expiry date, signature and other primary details.
- Passport size photograph along with proof of Indian and overseas address.
- Proof of NRI status by means of Employment/Residence Visa copy or Work/Residence Permit and PAN Card/Form 60 issued in India.
PIO(Person of Indian Origin)
Same documentation as the above along with duly filled PIO declaration.
Savings/current account holders of Axis Bank can open an RD account with less documentation. Similar paperwork which includes ID and address proofs, PAN details and other documents are required for non - account holders along with duly filled form. The bank representatives will advise you further on what is required at the time of opening the account.
Interest Rates Offered on Axis Bank’s Recurring Deposit
For domestic deposits, the interest rates varies from 8.25% to 8.40%, depending on the term chosen. For latest rates, refer to the rate cards as they are subject to change without prior notice. For NRE/NRO Recurring Deposit scheme, inquire with the nearest branch or customer service for latest interest rates.
Penalty Clause (RD Premature Withdrawals in Axis Bank)
No penalty is levied by Axis bank on premature withdrawals in the NRE/NRO category of Recurring Deposits. For domestic RD accounts, a deduction of 1% in the prevailing interest rates will be made for early withdrawals.This is applicable to deposits of any value. For exits within the first 14 days during the term, no penalty is applicable. Deposits over Rs. 5 crores will be penalised on standard rates even for exits during the 14 day period.