Fixed deposits are considered the first step towards building a corpus where the hard-earned money is safely locked-in for a certain period and comes with reasonable returns. But, falling interest rates and penalty for premature withdrawal was a concern for many.

Axis Bank account holders have some good news to cheer for. The lender announced waiver of penalty levied on premature redemption of fixed deposits that were booked or renewed on or after December 15 last year. This is valid for fixed deposits with tenure of two or more years.

Axis Bank Fixed Deposit Term wise Interest Rates Axis Bank Short-term FDs range between 7 days and 1 year. For short-term deposits, you can earn returns on your investments anywhere between 2.50% and 5.20% (regular FDs) Senior citizens can earn investment returns between 2.50% and 5.45% on their deposits (lesser than Rs 5 crore). Fixed Deposits (FD) Axis Bank's Fixed Deposit (FD) is a safe and convenient way to see your savings grow. Open a Fixed Deposit online with Axis Bank and save a minimum of Rs. 5,000 for a flexible tenure starting from a minimum of 7 days to a maximum of 10 years. To open a Fixed Deposit with Axis Bank, you will have to submit a duly filled Fixed Deposit application form. Download the Fixed Deposit application form, below. Fixed Deposit Account Opening Form (For Existing Customers) Fixed Deposit Account Opening Form (For New Customers).

Now, customers will be able to withdraw their fixed deposits after 15 months without having to pay any penalty. Axis Bank is the first leading private bank to introduce such a rule for its retail customers, non-senior and senior citizens holding FDs with the bank.

Fixed deposits allow you to access your money at any time but only after paying a penalty.

Other banks that levy charges on early withdrawals are the State Bank of India, ICICI Bank, HDFC Bank and Kotak Mahindra bank. They charge a penalty of 0.5-1 percent for early closure of fixed deposits. SBI charges 0.50 percent penalty across all tenures of investments of up to Rs 5 lakh. If a FD is withdrawn within seven days, then the bank does not pay any interest.

For instance, you hold a Rs 4 lakh FD with SBI then the bank will charge Rs 2000 as penalty from your deposit amount for early withdrawal. If the FD amount is Rs 20 lakh, then the bank will deduct Rs 20,000 as penalty.

One can avail the premature withdrawal facility offline as well as online. For offline, one can visit the bank branch with FD receipt, premature withdrawal form and other documents. Alternatively, one avail internet banking or mobile banking facility to withdraw the FD.

How to Renew Axis Bank Fixed Deposit Account?: Bank Fixed Deposit or Term Deposit is a deposit scheme where you can invest money in lump sum for a fixed pre-decided tenure at a given rate of interest. Axis Bank offers Fixed Deposit (FD) products of multiple tenures at competitive interest rates and with many other benefits like loan or overdraft facility against Fixed Deposit.

After the FD gets matured either the it has to be renewed, if you want to continue it, or, it has to be withdrawn.

There can be a situation when you do not want to withdraw the amount of FD on its maturity and want to renew it for some more time say 1 year or 2 years. It is to be remembered that the renewal or extension of FD happens at the prevailing interest rate at the time of renewal of FD.

There could be multiple reasons to renew or extend a bank Fixed Deposit Account after its maturity such as:

• No requirement of funds presently
• Better rate of interest being offered by the bank
• You would be going out for long duration so want to withdraw after your return
• Want to save funds through FD to accomplish your financial goals

Axis Bank Fixed Deposit Form

In order to renew your Fixed Deposit Account, you may be interested to know how to renew bank Fixed Deposit Account? It seems tedious but it's very easy to get your FD account renewed, you just need to follow a few steps for the same.