Axis Bank Interest Rate for Senior Citizens

Axis Bank RD or recurring deposit is a financial investment product that allows individuals to save money over a period of time while earning interest on their savings. The purpose of Axis Bank RD is to help individuals save money and earn interest on their savings, while also providing them with a disciplined savings plan. It comes up with the following features:

• Axis Bank RD can systematically generate wealth and add to your financial security.
• Once you open a bank RD the interest will remain the same for the tenure you have opted for.
• Not suitable for long term wealth creation or the investors with high risk appetite.

The purpose of Axis Bank RD is to encourage individuals to save money and earn interest on their savings. It is an ideal investment product for those who want to save money regularly and earn interest on their savings, but do not have a lump sum amount to invest. The fixed duration and interest rate of the RD account help individuals plan their savings and earn a predictable return on their investment.

Axis Bank Senior Citizen RD Interest Rates 2024

Axis Bank offers attractive interest rates on the Recurring Deposit scheme. The interest rates are calculated on a quarterly basis and are compounded annually. The interest rates vary based on the tenure of the deposit and the amount of the deposit. As of July 2024, the interest rates for the RD scheme range from 6.25% to 7.75%. The interest rate on the RD account is also fixed at the time of opening, and the interest earned on the RD is compounded quarterly.

Axis Bank Senior Citizen RD Amount

The minimum monthly instalment for Axis Bank RD is Rs 500 and then in multiples of Rs 500 thereof). There is no upper limit on monthly instalment.

Axis Bank RD works by allowing individuals to make regular deposits into their RD account, typically on a monthly basis, for a fixed period of time. The amount deposited and the duration of the RD account are predetermined by the individual at the time of opening the account.

Delay in Payment of Monthly Instalment of Axis Bank RD

You should avoid making delay in the payment of monthly instalment of Axis Bank RD. Still if you do so, for delayed payment of any instalment beyond the calendar month, you will have to pay a penalty of Rs 10 per Rs 1,000 per month for the period of delay. The fraction of month will be considered as a full month for the purpose of the penalty.

How to Open Axis Bank Senior Citizens RD Account?

You can open the Axis Bank Senior Citizens RD account in either of the following ways:

(1) Open Axis Bank Senior Citizens RD account using Internet Banking

• Login to the Internet Banking using your login credentials.
• Select the deposit option.
• Click on Create Recurring Fixed Deposit.
• Fill in the required details such as account number, etc.
• Enter nominee details.
• Selected amount will be debited from your savings account and your RD account will be instantly created.
• After the RD account is created, 'Recurring Fixed Deposit Advice' will be mailed to your registered e-mail ID.
• You can view the 'Recurring Fixed Deposit Advice' on Internet Banking after one working day of deposit booking.

(2) Open Axis Bank Senior Citizens RD account using Mobile Banking

• Login to the Mobile Banking App using your login credentials
• Select the deposit option.
• Select open RD.
• Fill in the required details such as account number, etc.
• Enter nominee details.
• Selected amount will be debited from your savings account and your RD account will be instantly created.
• After the RD account is created, 'Recurring Fixed Deposit Advice' will be mailed to your registered e-mail ID.
• You can view the 'Recurring Fixed Deposit Advice' on Mobile Banking after one working day of deposit booking.

(3) Open Axis Bank Senior Citizens RD account by Branch Visit

By visiting the nearest Axis Bank branch and any of the representatives will guide you through the RD account opening process.

How Axis Bank Senior Citizens RD can Create Wealth?

Axis Bank Senior Citizen Recurring Deposits (RDs) are an excellent investment option for individuals who want to create wealth over a period of time without taking too much risk. RDs are similar to Fixed Deposits (FDs), but instead of depositing a lump sum amount, investors can deposit a fixed amount each month, typically for a period of 6 months to 10 years.

The interest rate on Axis Bank Senior Citizen Recurring Deposit ranges from 6% to 7.75%. While the interest rates may seem low, they are an excellent way to create wealth over the long term due to the power of compounding. Investors who deposit a fixed amount each month for a longer duration can earn a substantial amount of interest on their deposits.

For instance, consider an investor who deposits Rs. 5,000 each month for a period of 10 years in a Bank RD with an interest rate of 7.75%. At the end of the term, the investor would have deposited a total of Rs. 6,00,000, but the maturity value would be Rs. 9,05,376. The investor would earn an interest of Rs. 3,05,376, which is a substantial amount.

Bank RDs are a safe investment option as they are backed by the government and have a fixed interest rate. They are an excellent investment option for individuals who want to save for their future goals, such as education, marriage or retirement. By investing in Bank RDs, individuals can create wealth over a period of time without taking too much risk.

Tenure of Axis Bank Senior Citizens RD

Tenure of Axis Bank Senior Citizens RD ranges from 6 months to 10 years. The minimum tenure to open Axis Bank RD account is 6 months and the maximum tenure is 10 years.

Axis Bank Senior Citizens RD Calculator

You can use Axis Bank Senior Citizens RD calculator to help you estimate your returns. Here's how you can use it:

• Monthly Investment Amount: Decide how much you want to invest every month.
• Tenure: Choose the duration for which you plan to invest in the RD.
• Interest Rate: Axis Bank currently offers an interest rate as mentioned in the above table based on its tenure.

Using the Axis Bank RD Calculator, you can calculate:

- The total amount deposited by you at the end of the tenure.

- The maturity value (total corpus) at the end of the tenure.

- The aggregate interest amount which you will earn over the investment period.

Premature Withdrawal of Axis Bank Senior Citizens Deposits

Minimum tenure for booking an RD with Axis Bank is 6 months. For any premature withdrawal, restrictions on minimum tenure is not applied. RD premature closure is done if you wish to withdraw your funds from a Recurring Deposit (RD) account before its actual maturity date.

Interest rates for deposits under Rs. 5 Crores: For deposits of a contracted amount less than Rs. 5 Crores opened/renewed on or after May 1, 2014, interest rate will be 1% below the card rate, prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower.

If a deposit is withdrawn within 14 days of opening: For deposits closed within 14 days from the date of opening, interest rate will be rate applicable for the period the deposit has remained with the bank or the contracted rate, whichever is lower.

For deposits of Rs. 5 Crores or more: For deposits of a contracted amount of Rs. 5 Crores and above, interest rate will be 1% below the card rate prevailing as on the date of deposit, as applicable for the period the deposit has remained with the bank or 1% below the contracted rate, whichever is lower. This would also be applicable on Rupee Term Deposits closed within 14 days from the date of booking of the deposit.

Documents Required Premature Withdrawal of Axis Bank Senior Citizens RD?

The required documents for premature RD withdrawal are as below:

• Duly filled withdrawal form
• Original RD account passbook
• Photo ID proof like a PAN card or Aadhaar card
• Any other documents as mandated in your specific case

Rules & Regulations for Recurring Deposit

• Depositor Needs to fulfil KYC norms as per RBI directive.
• Senior Citizen interest rates are applicable only for domestic deposits.
• The depositor has to deposit the monthly installments regularly till the maturity of RD account.
• In case the depositors failed to deposit Installment regularly, penalty will be levied.
• The maturity proceeds of the RD account is usually paid with in 30 days from the date of last instalment deposited.
• It is very important to submit your maturity instructions which should be clear. If you want the RD amount to be credited to your savings account or to be used in opening of a fixed deposit, you need to inform the bank in advance.
• Standing instruction will be accepted for transfer of monthly installments from other accounts maintained by the account holder.
• Penalty will be applicable, if the amount is withdrawal before maturity.

Factors to Consider Before Applying for Recurring Deposit

• Tenure of recurring deposit account
• Interest rate offered by the bank
• Conditions for premature withdrawal

Documents Required for Axis Bank RD for Senior Citizens

• Identity Proof (any one): Passport, Driving License, Voter ID Card, Government Approved College/university I.Card, Government/Semi government/Department I.Card Aadhar Card
• Address Proof(any one): Electricity Bill (not more than 2 months old), BSNL Landline Telephone Bill (not more than 2 months old), Municipal Tax Bill, Voter ID card, Aadhaar card, or passport, other proof acceptable by Bank.
• Passport Size Photograph: 2 Copies
• Pan Card or / Form 60 or 61 (if customer does not have PAN Card)
• Form 15H to avoid TDS
• Age Proof Certificate: which can be a birth certificate or any government-issued document that states the applicant's age.

Rules for Renewal of Recurring Deposit

Renewal of RD is a simple process. Renewal of the RD is one of the most common options available to the depositors after the maturity of an RD. Senior citizens should be aware of the rules for the renewal of RDs before investing in them. They should check the tenure, renewal options, terms and conditions, premature renewal, etc. to make an informed decision. A well-researched investment can provide financial security and peace of mind to senior citizens.

• Depositors can choose to renew their RD for the same duration or for a different duration.
• Depositors have the facility to renew their RD either online or by visiting their bank branch.
• No additional documentation is required for renewal if the RD is automatically renewed or if you are renewing it through the bank's online platform. However, minimal documentation may be needed if you are doing manual renewal at the branch.
• Some banks have the option of auto-renewal of RD. Auto-renewal of RD means that the renewal of the RD will happen automatically on the date of maturity for the same duration as the original RD. The interest rate applicable will be the prevailing rate at the time of renewal.
• The interest rate for the renewed RD will be based on the rates prevailing at the time of renewal. It is important to know that the current rates may differ from the rates of your original RD.
• If you need funds, some banks allow partial withdrawal of the RD amount before renewal.
• The interest earned on the renewed RD will be subject to tax and you need to consider the same for the accounting purpose.

Safety of Recurring Deposit Funds

The Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the central bank, guarantees investments in recurring deposits of up to Rs 5 lakh for all the member banks.

Tax Benefit under Axis Bank RD for Senior Citizens

It is important to note that senior citizens can claim a tax deduction of up to Rs. 1.50 lakh under Section 80C of the Income Tax Act, 1961, on the amount invested in RD schemes for senior citizens, if the RD tenure is atleast 5 years. This tax benefit makes these schemes more attractive to senior citizens who are looking for safe investment options that offer tax benefits.

TDS Under Axis Bank RD for Senior Citizens

Senior citizens need to understand the tax implications of investing in RDs before making any investment in RD. Tax Deducted at Source (TDS) is a tax that is deducted from the interest earned on an RD. In this article, we will discuss the TDS rate on Recurring Deposit for senior citizens.

The TDS rate on Recurring Deposit for senior citizens is 10% of the interest earned, provided that the interest income is more than Rs. 50,000 per annum.

This limit was increased from Rs. 10,000 to Rs. 50,000 in the 2018 Union Budget, providing relief to small depositors. It is important to note that this limit is applicable to the total interest earned by the senior citizen in a financial year, including interest from savings accounts, fixed deposits, and recurring deposits.

Senior citizens can avoid TDS by submitting Form 15H to the bank. This form is a declaration stating that the senior citizen's total income for the financial year is below the taxable limit, and hence no TDS should be deducted. It is important to note that Form 15H needs to be submitted to each bank where the senior citizen holds an RD account.

If TDS is deducted from the senior citizen's RD account, they can claim a refund by filing their income tax return. The TDS amount will be considered as advance tax paid by the senior citizen and will be adjusted against their final tax liability. If the TDS amount is more than the final tax liability, the senior citizen can claim a refund of the excess amount.

Role of Senior Citizens RD in Financial Planning

No Risk of Loss

RDs does not have any risk of principal loss unlike stocks or mutual funds. The invested amount is safe and the returns are assured. This feature is particularly important for retirees who cannot afford to lose their savings.

Creation of Big Corpus

The maturity amount from RDs can be used as a supplementary income after retirement. It can be used to meet regular expenses, medical bills or any other financial needs.

Tax Benefits

Investments in RDs for the tenures 5 years and above also come with certain tax benefits under Section 80C of the Income Tax Act for providing additional financial relief for retirees.

Supplementary Income

If you invest the funds accumulated under RD account in any systematic withdrawal plan or monthly income plan, then you can use it as an additional monthly income in addition to any pension income which you receive.

Flexible Tenure

RDs offer flexibility in selecting tenure which allows senior citizens to choose a period according to their financial goals. Whether it's short-term goals or long-term targets, the investors can select an RD tenure that suits their needs so that the funds can be available when required.

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