India Markets closed

Good To Know: Axis Bank To Not Penalise Premature FD Closures

Team BankBazaar
·3-min read
Photo by maitree rimthong from Pexels
Photo by maitree rimthong from Pexels

In news that will cheer up its depositors, Axis Bank has announced the removal of premature closure penalty on new retail term deposits booked on or after 15 December 2020 for a tenure of 2 years or more.

As per media reports, with the no-penalty term deposit, the bank’s objective is to inculcate and encourage retail customers to go for long-term savings without worrying about the sudden need for liquidity. The new rule applies to all fixed and recurring deposits.

The new feature will be applicable on all new fixed deposits and recurring deposits. As per the bank, for new deposits booked for a tenure above 2 years, there will be no premature penalty if the entire deposit is prematurely withdrawn after 15 months of booking.

The bank also said that the new feature also offers no penalty on first withdrawal of up to 25 per cent of term deposit principal value. Axis Bank, the third-largest bank in the country, also provides attractive interest rates and multiple options like cumulative, monthly or quarterly pay-out of interest on its fixed and recurring deposits.

In a press statement, Praveen Bhatt, EVP – Retail Liabilities and Direct Banking Products, Axis Bank, said, “To stay ahead of the curve, we have waived off the penalty on all term deposits closed after 15 months. This new feature is in line with our objective to introduce customer-centric benefits by offering flexibility and convenience, while also improving our book quality.”

If you are planning to invest in term deposits of any of the private banks, here are their latest interest rates.

Bank

<1
year

1 to 2
years

2 to 3
years

3 to 5
years

w.e.f

Axis Bank

5.15

5.4

5.4

5.5

Jan 04

Bandhan Bank

5.25

6

6

5.65

Jan 04

Catholic Syrian

4.25

5

5.25

5.25

Dec 01

City Union Bank

5

5.75

5.75

5.5

Dec 16

DCB Bank

6.1

6.7

6.75

6.75

Jan 07

Dhanlaxmi Bank

4.5

5.3

5.4

5.5

Sep 01

Federal Bank

4.4

5.35

5.35

5.5

Dec 17

HDFC Bank

4.4

4.9

5.15

5.3

Nov 13

ICICI Bank

4.4

5

5.15

5.35

Oct 21

IDFC First Bank

5.25

6

5.75

5.75

Sep 15

IndusInd Bank

5.75

6.5

6.5

6.5

Dec 30

J & K Bank

4.5

5.1

5.2

5.3

Oct 11

Karnataka Bank

5.2

5.3

5.55

5.55

Nov 30

Kotak Bank

4.4

4.75

4.75

4.75

Dec 19

Karur Vysya Bank

5

5.5

5.65

6

Nov 16

RBL Bank

6

6.5

6.5

6.75

Jan 01

South Indian Bank

5

5.4

5.4

5.5

Dec 18

Tamilnad Mercantile Bank

5.25

5.75

5.65

5.5

Sep 01

TNSC Bank

5.75

6

5.85

6

Dec 09

Yes Bank

5.75

6.5

6.75

6.75

Dec 08

Disclaimer: Data compiled by Bankbazaar.com as on respective banks’ website on Jan 08, 2021; For each year range, the maximum offered interest rate is considered; interest rate is for a normal fixed deposit amount below ₹1 crore.