TERM DEPOSIT

Axis Bank Product

Presentation By:
Manish kumar Giri
Watan Kumar
Tanya Jain
Shweta Semwal
Vikrant Venkatesh
 TERM DEPOSIT
• A time deposit or term deposit is a deposit
with a specified period of maturity and earns
interest
• Types
• FD
• RD
• Interest is higher than Demand Deposit
 Product of Axis Bank Term Deposit

• Fixed Deposits
• Fixed Deposits Plus
• Tax Saver Fixed Deposits
• Recurring Deposits
• Encash 24 Flexi Deposits
 Axis Fixed Deposits
• Investment Amount
• Minimum - Rs. 5,000 -Booked via Internet or Mobile Banking
- Rs. 10,000- by visting branch
• Maximum - No Maximum Limit
• Tenure
• Minimum - 7 days
Maximum - 10 years
• Seamless Transfers
• Transfer funds easily from a Savings Account to a Fixed Deposit to earn higher interest
• Hassle-Free Opening
• Open fixed deposits from home/office
• Avail automatic rollover facility
• Only on principal: Only principal is rolled over and interest is credited to a designated
account or paid out
• Method of calculation of interest rates on your Fixed
Deposits
• For Fixed Deposits with tenure of 6 months and above,
interest is calculated on a quarterly basis.
• Interest earned during the previous quarter is added to the
principal for calculation of interest. Fixed deposit interest
rate on this amount is calculated every quarter.
• For fixed deposits schemes with a tenure below 6 months,
interest is calculated at simple interest. Please note that
the period of the Fixed Deposit is considered in number
of days.
 Premature Penalties
• For Rupee Term Deposits of a contracted amount less than Rs. 5 crores opened/renewed on or
after May 1, 2014 (including Flexi Deposits), interest rate will be 1.00% below the card rate,
prevailing as on the date of deposit, as applicable for the period the deposit has remained with
the bank or 1.00% below the contracted rate, whichever is lower. However, for Rupee Term
Deposits closing within 14 days from the date of booking of the deposit, the interest rate will
be the rate applicable for the period the deposit has remained with the bank or the contracted
rate, whichever is lower.
• For Rupee Term Deposits of a contracted amount less than Rs. 5 crores opened/renewed on or
after December 15, 2017 (including Flexi Deposits), for the first partial withdrawal with value
<= 25% of the Term Deposit’s original principal value, Premature Closure Penalty Rate will
not be applicable. For subsequent partial withdrawals, Premature Closure Penalty Rate will be
applicable on the entire withdrawal amount. For the partial withdrawal with value > 25% of
Term Deposit original principal value, Premature Closure Penalty Rate will be applicable for
the entire withdrawal amount. However, for Rupee Term Deposits closing within 14 days
from the date of booking of the deposit, the interest rate shall be the rate applicable for the
period the deposit has remained with the bank or the contracted rate, whichever is lower.
• For Rupee Term Deposits of a contracted amount of Rs. 5 Crores and above, the interest rate
shall be 1% below the card rate prevailing as on the date of deposit, as applicable for the
period the deposit has remained with the bank or 1% below the contracted rate, whichever is
lower. This would also be applicable to Rupee Term Deposits closing within 14 days from the
date of booking of the deposit.
 Eligibility
• Eligibility for Fixed Deposits
• Below are the individuals and groups eligible for
a Regular Fixed Deposit:
• Residents
• Hindu Undivided Families
• Sole proprietorship firms
• Partnership firms
• Limited companies
• Trust accounts
 Documentation
• An individual, HUF , SP Concern
• A valid passport or a valid driving license
• An introduction by any other bank or an introdcution by an Axis
bank savings accountholder for alst six months
• A photograph
• Trusts
• Copy of the Trust Deed
• Copy of the Registration certificate
• Copy of the resolution of the trustee
• Authorising the members concern to open and operate the
account
• Photographs of the members operating the account
 How to Open FD
• Internet Banking
• Mobile Banking
• Visiting near by Branch
 Fixed Deposit Plus
• Axis Bank’s Fixed Deposit Plus gives you a
higher rate of return compared to regular FDs
and the option is available to all NRI and
domestic customers. The interest rate is
available on a simple or compounding basis
for a minimum amount of Rs. 15,00,001.
 AXIS Bank Fixed Deposit Plus:
Interest Rates
The interest rates offered by the bank have a
competitive edge and can go up to 7.10% p.a.,
making it a well-paying investment scheme.
All senior citizens have the right to get an
additional rate of interest. The highest rate paid
here is 7.75% p.a.
For 30 months to 10 years, the rate paid is
7.00% p.a., and for senior citizens, the rate is
7.50% p.a.
 Features & Benefits
 High-value investment: When compared to the
regular time-deposit scheme, the minimum
investment amount is comparatively much higher.
This in turn, will only result in higher returns on the
investment that is made, giving you a lucrative
maturity amount.
 Choose deposit type: The investor has the
complete freedom to choose the type of deposit plus
plan such as short-term FDs, reinvestment plans, or
quarterly and monthly payout options.
 Select interest computation method: If the
deposit holder chooses to keep the FD for more
than 6 months, interest is computed on a quarterly
basis. Simple interest will be applicable for those
term deposits that are held for less than 6 months.
 Customised deposit plans: This type of FD plan
will allow the customer to create a tailor-made
deposit scheme by choosing a convenient tenure
and type of deposit option as per individual
financial needs and goals.
 Eligibility
Axis Bank’s Fixed Deposit Plus is available for NRIs as well as
domestic customers. Submit a duly filled application form and
necessary documents as per your eligibility to be able to open a
Fixed Deposit Plus account with Axis Bank.
Eligibility to Open a FD
• Individuals
• Joint account but not exceeding 4 applicants
• Minor with a guardian
• Partnership
• Company (Limited)
• Trusts
• NRIs
• Hindu Undivided Families (HUF)
 Documents required to open FD
Axis Bank Application Form
Depositor’s photograph (2 copies)
Identity proof & Address proof as per KYC
Norms
PAN Card copy/ Form 60 or 61
Aadhaar Card Details
 Other highlights of Axis Bank
Deposit Plus FD
Nomination facility
Automatic renewal option after maturity
Part withdrawal facility on the deposits
Avail loan upto 90% of the deposit amount
Online operation for the FD account.
 TAX SAVER
FIXED DEPOSIT

Special type of FD
Can be made by any resident or HUF
To save tax u/s 80C of Income Tax Act.
 Features & Benefits
• Investment from a minimum amount of Rs. 100 to a
maximum of Rs. 1,50,000.
• Five year tenure u/s 80c of IT Act ,1961
• Choose from 3 options:
Tax Saving - Reinvestment Deposit,
Tax Saving - Quarterly Interest Payout or
Tax Saving – Monthly Interest Payout
• Minimum lock-in period of 5 years is stipulated to
enable the deposit to be assessed as exempt from
taxable income u/s 80C of the Income Tax Act. No term
deposit will be encashed before the expiry of 5 years
from the date of receipt.
• Bank will issue a FD receipt that shall be the basis of
claiming tax benefit.
• Maturity period – Calculated from date of receipt.
• Fixed Deposit with the bank shall be subject to tax
deduction at source as per income tax act 1961.
• Interest on these term deposits shall be liable to tax
under the act, on the basis of annual accrual or receipt,
depending upon the method of accounting followed by
the assesse.
• Tax on such interest shall be deducted in accordance
with the provisions of section 194A or section 195 of
the IT act.
 Eligibility
Apply for Axis Bank’s Tax Saver Fixed Deposit
online by fulfillng the eligibility criteria.
Here are the individuals and entities eligible for
this:
• Residents
• Hindu undivided families (HUF).
 Documentation
Documents required from individuals and Hindu
Undivided Families when applying for a Fixed
Deposit:
• A valid passport or a valid driving license
• An introduction by any other bank or an
introduction by an Axis Bank Savings Account
holder for the last six months
• A photograph
RECURRING DEPOSITS
 Features
 Recurring deposits are accepted in equal monthly
installments of minimum Rs 500 and above in multiples of
Rs 500 thereafter.
 Recurring Deposit accounts can be opened for a minimum
period of 6 months and in multiples of 12 months
thereafter, upto a maximum of 10 Years.
 The amount of instalment once fixed, cannot be changed.
 Instalment for any calendar month is to be paid on or
before the last working day of the month. Where there is
delay in payment of instalment, customer will be levied a
penalty @ PLR plus 4 % for the period of delay. Fraction of
a month will be treated as full month for the purpose of
calculating the penalty.
 The total amount repayable to a depositor, inclusive of
interest, depends on the amount of monthly installments
and the period of deposit.
 For Rupee Term Deposits of a contracted amount less than Rs 5 Crores
opened/renewed on or after May 1, 2014 (including Flexi deposits),
interest rate shall be 1.00% below the card rate, prevailing as on the date
of deposit, as applicable for the period the deposit has remained with
the bank or 1.00% below the contracted rate, whichever is lower.
 However, for Rupee Term Deposits closed within 14 days from the date of
booking of the deposit interest rate shall be rate applicable for the period
the deposit has remained with the bank or the contracted rate,
whichever is lower.
 For Rupee Term Deposits of a contracted amount of Rs 5 Crores and
above, interest rate shall be 1% below the card rate prevailing as on the
date of deposit, as applicable for the period the deposit has remained
with the bank or 1% below the contracted rate, whichever is lower. This
would also be applicable on Rupee Term Deposits closed within 14 days
from the date of booking of the deposit.
 There would be no premature withdrawal penalty on NRE Term Deposits.
 Points to be noted
 Avoid delayed payments.
 For Recurring Deposits opened on or after 9th August,2016, in
case of delay in payment of any installment/s beyond the
calendar month, the depositor /s shall be liable to pay a
penalty at Rs. 10 per Rs. 1000 per month for the period of
delay.
 For Existing Recurring Deposit Customers, in case of delay in
payment of any installment/s beyond the calendar month, the
depositor /s shall be liable to pay a penalty at the existing
Business Prime Lending Rate +4% for the period of delay.

 Fraction of a month will be treated as full month for the

purpose of calculating such penalty i. e. if the installment due
on 31.05.2011, is paid on 02.06.2011 the delay shall be
treated as one month.
Encash 24 Flexi
Deposit
 Flexi Deposit
• The Encash 24 (Flexi Deposit) gives you the liquidity of a Savings
Account coupled with high earnings of a Fixed Deposit.
• This is achieved by creating a Fixed Deposit linked to your Savings
Account providing you the following unique facilities:
• Maximum Returns:
• Your money is no longer idle. As soon as the balance in your
Savings Account crosses over Rs 25,000, the excess, in multiples of
Rs 5,000 will be transferred automatically to a higher interest
earning Fixed Deposit Account.
• The maturity of fixed or term deposits formed as a result of transfer
of money from the Savings Bank account will be for a minimum
period 6 months upto a maximum of 5 years.
• Maximum Liquidity:
• The money parked in Fixed Deposits as a result of the
above mentioned sweep out from your Savings account can
be easily accessed by issuing a cheque, withdrawing
through ATM etc
• This amount is automatically reverse swept from the most
recently formed Fixed Deposit in units of Rs 5,000 to the
Savings account whenever the balance in your Savings
account falls below Rs 25,000.
• The amount broken form your Fixed Deposit will earn
interest rates at the applicable rate for the period that the
deposit was held with the Bank.
• The remaining amount of Fixed Deposit will continue to
earn the contracted rate of interest.
offered on Axis Bank Encash 24 Flexi
Deposits with effect from June 1,
2018, for regular and senior citizen
FDs:
 Calculation of TDS in respect of
Interest
• TDS in respect of interest earned on fixed deposits,
is deducted on the basis of thetotal interest
projected on the aggregate of fixed deposits of the
customer, for the financial year.
• Thus, if the total projected interest in a financial
year crosses the threshold limit which is presently
Rs.10,000/-, TDS is deducted proportionately from
the existing fixed deposits at the time of interest
application.
• This is in accordance with Section 194 A 3 (i) (a) of
the Income Tax Act.
 Features & Benefits
• Earn more interest on your investment
• Enjoy the benefits of easy liquidation
• Get the benefit of holding a savings account
and a fixed deposit simultaneously
• Get sweep-in facility on a 24/hour basis
• Flexibility of withdrawal of funds
• Encash without any hassles
Eligibility Criteria of Encash 24 Flexi Deposit
 Axis Bank Encash 24 Flexi Deposit:
How to Apply
• Those who have access to online or mobile
banking facilities will be able to open an flexi
deposit in a matter of minutes
• You can also download the
form https://www.axisbank.com/docs/default
-source/default-document-library/enash-24-
form.pdf?sfvrsn=e5b6df55_0 , fill in the
relevant details and submit it to the nearest
branch.