Axis Bank Short Term FD Rates

What is Axis Bank Short Term FD?

An Axis Bank Short Term FD is a term deposit designed for customers who prefer to invest their money for a short duration while earning guaranteed returns. The minimum deposit for an FD via internet banking or mobile app is ₹5,000, and ₹10,000 when opened through a bank branch. The tenures for short-term FDs range from 7 days to 1 year.

Axis Bank Short Term FD Interest Rates

Below are the updated interest rates for Axis Bank’s Short Term FDs, applicable to retail deposits below ₹3 crore:

Axis Bank Short Term FD rates w.e.f. 20 December 2025.

Features of Axis Bank Short Term FD

Axis Bank short term FDs have a number of benefits that make them a favourite investment option in the short term. These features include:

• Flexible Tenure: Axis Bank enables investors to select short-term tenures of 7 days to 1 year and be flexible in case of various financial needs.
• Premature Withdrawal: You can withdraw Axis Bank short-term FD prematurely. Nevertheless, Axis Bank FD premature withdrawal may imply a certain penalty of 1% of the interest gained in case of early closure.
• Loan Facility: You can borrow a loan against your Short term FD at Axis Bank in times of an emergency. The loan will carry an extra 2% interest on the interest rate on your FD.
• Axis Bank Sweep-in FD: In Axis Bank Sweep in FD, any excess amount on top of ₹25,000 in your savings account is automatically swept into a Short Term FD in ₹5,000 multiples. This option enables you to get better interest rates on your additional money and, at the same time, have it readily available when you need.
• Auto-Renewal Facility: Axis Bank is offering an auto-renewal facility whereby your FD is automatically renewed at new rates as long as you do not withdraw the entire amount.

How to Open an Axis Bank Short Term FD?

Opening Short Term FD in Axis Bank is easy and can be done both online and offline. Below is the process for both options:

Online Process

To open an Axis Bank Short term FD online, it is fast and simple. Follow these simple steps:

• Visit Online Portal: Sign in to the Axis Bank online banking platform or mobile application.
• Discover FD Options: Learn about the tenures and available interest rates and choose the one that you want.
• Check Interest Rates: Check the prevailing rates for general citizens or those of senior citizens.
• Enter Amount to be deposited: The amount to be deposited has to be ₹5,000 or above, but there is no maximum.
• Complete the Booking: Enter the mandatory information, including tenure, interest payment frequency and nominee information.
• Track and Manage: You can monitor, renew or shut down your FD at any time, either using the online platform or using the mobile application.

Offline Process

Opening an Axis Bank Short Term FD offline is simple. Follow these steps:

• Visit the Nearest Axis Bank Branch: Go to the nearest branch with the required KYC documents.
• Collect the FD Application Form: Request the FD form from the bank representative.
• Discuss Available Options: Consult the representative to explore tenure options, interest rates, and other benefits.
• Fill Out the Application Form: Complete the form with your deposit amount, tenure, interest payout preference, and nominee details.
• Submit and Deposit Funds: Submit the form along with your deposit amount via cash, cheque, or transfer.
• Collect FD Receipt: After submission, receive the FD receipt as proof of your investment.

Eligibility Criteria for Axis Bank Short Term FD

Most investors can get Axis Bank Short Term FDs. The eligibility requirements are as follows:

• Eligible Customers: Indian residents are allowed to open an Axis Bank short term FD. The senior citizens get preferential interest rates of 0.50%.
• KYC Compliance: The depositors are required to do so and adhere to Axis Bank KYC requirements by providing valid evidence of identity and address. In the case of FD opened online, KYC records are required to be updated.
• Type of account: To open an FD, an Axis Bank savings account or a current account in Axis Bank is needed. The customers who do not have an account with Axis Bank will be required to open an account to access this service.

Taxation on Axis Bank Short Term FD

Interest earned on Axis Bank Short Term FDs is taxable under the Income Tax Act. Axis Bank deducts Tax Deducted at Source (TDS) if the interest income exceeds the prescribed threshold. For the financial year 2025-26, the TDS threshold is ₹50,000 for general citizens and ₹1,00,000 for senior citizens. If your total income is below the taxable limit, you can submit Form 15G/15H to avoid TDS deductions. The interest earned will be added to your total taxable income and taxed as per your applicable income tax slab.

Key Takeaways

Axis Bank Short Term FD is a safe and convenient method to get guaranteed returns on investments that are made over a short period of time. Short term FD offers general citizens a range of 3.00% to 6.25% and senior citizens receive 3.50% to 6.75% Axis Bank FD interest rates, making the FD an easy way to save money in the short term. The deposit amount is ₹5,000 minimum and a customer can open an FD easily online or at any branch of Axis Bank. It is an easy and risk-free investment option because of its liquidity options, like early withdrawal or borrowing from the FD.