Axis Bank RD Interest Rate

What is Axis Bank Recurring Deposit?

Axis Bank Recurring Deposit (RD) offers a structured savings option with fixed monthly instalments over a predetermined tenure. The minimum deposit amount is ₹500, with no upper limit. Interest is deposited quarterly, helping your fixed monthly savings grow steadily. RD interest rates depend on the tenure and customer type, whether regular or senior citizen.

With timely contributions, you can experience improved financial well-being. However, a small penalty is levied for delayed or missed instalments, motivating customers to stay on track with their deposits.

Axis Bank RD Interest Rates

Below are the RD interest rates of Axis Bank for deposits below ₹3 crore across various tenures:

*Axis Bank RD Rates w.e.f 22 December, 2025

Types of Axis Bank Recurring Deposit

Axis Bank provides different kinds of Recurring Deposit accounts for its customers. These are:

1.  Regular RD Accounts

   Regular RD accounts are the most common types of RD schemes offered by Axis Bank. Anyone above the age of 18 can have access to them. Customers need to select a fixed term and amount, usually ranging from 6 months to 10 years, with regular monthly instalments.

   The rate of interest is fixed throughout the tenure, and the account holders can easily calculate the interest. In this account, only the fixed monthly deposits can be deposited, and no other extra amount can be added. 

2.  RD Accounts for Senior Citizens

   Senior citizens enjoy higher Axis Bank Senior Citizen RD rates compared to regular schemes. This offers enhanced financial security for those over 60, allowing them to earn the maximum interest. These RDs compound the interest, which helps the invested sum grow steadily over time.

3.  RD Accounts for Minors

   Axis Bank allows parents and guardians to open RD accounts for minors under 18. It helps set aside money for the child’s future requirements, like education, wedding, or other expenses. The maturity sum adds security for the child.

4.  NRE Recurring Account

   NRIs can open RD accounts to save in Indian currency and earn interest. Axis Bank's NRE RD allows monthly instalments starting at ₹500, with flexible options. The NRE RD is classified into two categories:

   • NRE RD: You can have both interest and principal fully credited to your bank account, including cross-border transfers with no restrictions. Start with a ₹1,000 minimum monthly deposit, adding ₹500 increments to grow your investment. Consider longer-term options, where the time frame runs from 1 to 10 years for planning purposes.
   • NRO RD: You can transfer the principal amount outside the country, but the interest earned is subject to Indian tax. You can fund your deposit conveniently through monthly transfers from your NRO Savings Account. Choose a minimum monthly instalment of ₹1,000, adding ₹500 increments to grow your investment. Thus, you benefit through long-term plans, with tenure periods starting at 6 months and extending to 10 years, as needed.

5.  Tax Saving RD Account

   Though rare, some banks allow Tax Saving RD Accounts that help their customers save under Section 80C of the Income Tax Act, 1961. Interest amount exceeding ₹10,000 is taxable. They typically have a lock-in period, with interest rates generally lower than Regular RD. 

Key Features of Axis Bank RD 

The Axis Bank Recurring Deposit includes simple features that allow you to save consistently every month during a fixed chosen period.

• Attractive Interest Rate and Compounding: The compounding of interest on RD helps money grow faster than simple interest accounts. Axis Bank has a competitive rate with more returns compared to a regular savings account.
• Premature Withdrawal Facility: The RD is designed to be for a full tenure, however, with Axis Bank RD premature withdrawal customers can close the RD before maturity or completion of the tenure, subject to nominal penalties. There is a penalty of 1% below the interest rate applicable for the period the deposit remained with the bank. 
• Flexible Tenure Options: Customers have the flexibility to choose a tenure from 6 months to 10 years. This gives an option for both long-term and short-term saving goals. 
• Penalty on Delayed Instalments: For RDs after August 2016, for every missed or delayed monthly instalment, a penalty of ₹10 per ₹1,000 per month applies. This established discipline encourages timely deposits.

How to Open Axis Bank RD

Axis Bank RD allows online and offline account opening. Both procedures are simple and easy, helping customers have a hassle-free account opening.

Online Method

An Axis Bank RD account can be opened online from the comfort of home.

• Opening a Savings Account: If you do not have an existing Axis Bank savings account, start by opening one and enrolling for Net or Mobile Banking.
• Sign in to Internet Banking: Open the Axis Bank App or visit the online portal, then log in with your Customer ID, Username, and Password.
• Pick Deposit Type: Go to the deposit section and select ‘Create Recurring Deposit’ to open a fresh RD account easily.
• Fill in the Details: Enter the required details such as the monthly instalment amount, tenure, and nominee details.
• Link Savings Account: Connect your Axis Bank Savings Account for easy automatic monthly instalment debits.
• Set Up the Nomination: Add a nominee's details.
• Submit the Application and Debit Account: Please see that the application details are checked fully before you proceed to the final submission.

Offline Method

These are the steps for the offline process via Axis Bank’s branch:

• Visit the Bank Branch: Opening an RD account offline involves going to the nearest Axis Bank branch located close to you nearby area.
• Fill Out the Application Form: After arriving at the bank branch, complete the application form for opening a Recurring Deposit account as required.
• Provide an Instalment Cheque: Write a cheque covering the initial instalment amount and duly submit it with the application form.
• Attach Required Documents: Make sure you bring essential documents like your PAN card, Aadhaar card, and bank account details.
• Pay First Instalment: Send the first instalment via cheque or debit from your savings bank account.
• Receive RD Certificate: After successful processing, the bank will provide you with an RD certificate containing all relevant details.

Axis Bank RD Eligibility Criteria

Individual investors and firms meeting certain conditions can open a Recurring Deposit. The key criteria include:

• Individuals: Indian residents, Hindu Undivided Families (HUFs), and Non-Resident Indians (NRIs) are eligible to open Recurring Deposit accounts; NRIs can do so only through their NRE or NRO accounts.
• Minors: Minors can open a recurring deposit account under the guardianship of an adult.
• Joint Accounts: Joint RD accounts are available for up to two account holders.
• Institutions: Companies, trusts, and clubs can also open RD accounts, subject to the approval of the bank.

Documents Required for Axis Bank RD

To set up a recurring deposit account, you must submit the listed documents:

• Proof of identity: PAN Card, Aadhaar Card, Passport, Driving Licence, or Voter ID.
• Proof of address: Aadhaar Card, Utility Bill, Passport, or Driving Licence.
• Photographs: Recent passport-sized photographs.
• Application form: Duly filled RD application form available online or at the bank branch.

Key Takeaways

With an Axis Bank Recurring Deposit, you can build savings by putting in money for a duration of 6 months to 10 years. The minimum deposit amount is ₹500 and its multiples. The interest rate varies from 5.50% to 6.45% per annum for general citizens, and senior citizens receive higher rates, ranging from 6.00% to 7.20% per annum, for deposits below ₹3 crore. An RD calculator can also be used to estimate your returns for a particular tenure.