Axis Bank offers you simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 10,000. You can make additions to your deposit in multiples of Rs 1,000 each. The tenure of your deposit must be for a minimum period of 6 months.
Fixed Deposit schemes with Axis Bank:
In a reinvestment deposit with Axis Bank, the interest accrued to your deposit at the end of each quarter is invested along with the principal. The tenure of your deposit must be for a minimum period of 6 months. At the end of the quarter, the interest and the principal are both rolled over, and the interest is calculated on the total sum. Income tax is deducted at source.
As a Fixed Deposit holder with Axis Bank, you can avail of the facility for automatic rollovers on maturity (for both the principal and interest). You can select this option in the Account Opening Document (AOD). The options available are:
Rollover only Principal
Only the principal amount will be rolled over. The interest will be either credited to your designated account or paid out.
Rollover Principal and Interest accrued in Reinvestment Deposit
This will rollover both the deposit and the interest accrued for the same tenure at the interest rate applicable on the maturity date.
On or before the maturity date, you can make the following changes in the rollover instructions of the deposit:
- Change in tenure
- Change in maturity instructions
- Change in payment instructions
- Change in principal (only reduced amount)
- Change rollover of Principal to rollover of Principal + Interest, or vice versa.
All encashment or withdrawals of Fixed Deposits can only be made at the branch where the deposit is booked.