Axis Bank FD Premature Withdrawal

Axis Bank FD Premature Withdrawal Penalty Charges

Axis Bank draws its penalty threshold at ₹5 crore, higher than the ₹2 crore to ₹3 crore slabs used by several public sector banks. No interest is paid if a term deposit is closed prematurely before completing the minimum period of 7 days. The table below shows the Axis Bank FD premature closure charges with the applicable conditions:

Premature withdrawal rules and penalty rates updated as per prevailing Axis Bank guidelines as of 3rd September 2026.

How Interest Is Recalculated on Premature FD Closure

For Rupee term deposits below ₹5 crore closed within 14 days of booking, Axis Bank applies the rate applicable for the period held or the contracted rate, whichever is lower, without the 1.00% reduction. After 14 days, the 1.00% reduction applies. For deposits of ₹5 crore and above, the same comparison applies.

For closures where the 1.00% reduction applies: Effective Rate = Lower of [(Card Rate for Completed Tenure − 1.00%) or (Contracted Rate − 1.00%)]

Example of Interest calculation on premature closure

Suppose there is an FD in Axis Bank of 1-year tenure with an interest rate of 6.25% p.a. but redeemed before completion of the year, i.e., after 6 months.

The rate for the completed tenure, 5.50% p.a., is reduced by the 1.00% penalty to 4.50% p.a. Generally, the FD interest rate payable will be the contracted rate minus the penalty rate (e.g., 1.00%), or the base rate applicable for the actual period the deposit remained with the bank minus the penalty, whichever is lower.

How to Close an Axis Bank FD Prematurely

Axis Bank provides two options for premature withdrawal online and offline, with a defined process for each.

Online FD Withdrawal (Internet Banking / Mobile App)

You can request premature closure of your Axis Bank Fixed Deposit online by following these steps:

• Log in: Access Axis Bank internet banking or the mobile banking app using your credentials.

• Navigate to deposits: Go to the FD section from the main dashboard menu.

• Select the FD: Choose the specific fixed deposit account you want to close early.

• Choose premature closure: Select the premature closure option and enter the withdrawal amount needed.

• Review recalculated interest: Check the revised payout amount shown before confirming the transaction request.

• Confirm the request: Authenticate and submit, and the closure typically processes on the same day.

Offline FD Closure (Branch Visit)

You can also request premature closure of your Axis Bank Fixed Deposit by visiting a branch and following these steps:

• Visit the branch: Go to any Axis Bank branch with your account and deposit details.

• Carry ID proof: Bring valid identification such as your Aadhaar or PAN card.

• Fill the closure form: Complete the premature closure form available at the branch counter.

• Submit the FD receipt: Hand over the original receipt or advice, if one was issued.

• Complete verification: Branch staff verify your documents and process the closure request.

• Receive credited proceeds: The revised amount is credited to your linked account.

Exceptions and No-Penalty Conditions

Axis Bank has incorporated numerous exceptions in its rules for premature closures, more than those of many other banks.

• Free partial withdrawal: For deposits under ₹5 crore opened or renewed on or after 15th December 2017, excluding Flexi Deposits, the first partial withdrawal up to 25% of the original principal is free of the premature closure penalty. Subsequent partial withdrawals, or a first withdrawal above 25%, attract the penalty on the full withdrawal amount.

• NRE and FCNR deposits: No penalty applies to individual NRE deposits under ₹5 crore. No interest is paid on premature withdrawal within 1 year for NRE and FCNR deposits.

• Death and survivorship: In the event of a depositor's death, premature withdrawal by a survivor under an Either or Survivor or Former or Survivor mandate, or by a nominee on a single deposit, does not attract any penal charge. The rate paid is the rate applicable for the period the deposit remained with the bank.

Non-Callable vs Callable FDs

Callable FDs permit premature withdrawal of FD subject to the penalty and recalculation rules described above. Axis Bank's FD Plus and non-callable FD for deposits of ₹3 crore and above are structured differently. Premature closure is not permitted except in cases of bankruptcy, winding up, court or regulator directions, receivership, liquidation, or the depositor's death.