Private sector lender Axis Bank has recently unveiled a new ‘Express FD' scheme. Express FD is a digital fixed deposit product which allows customers to open a fixed deposit account online without investing in a savings account in Axis Bank. Currently, more than 62% of total Axis Bank’s FD accounts are created digitally, said the private lender. To woo non-Axis Bank customers, Axis Bank offers this new short term online fixed deposit investment option.
Customers can open an Express FD account with Axis Bank by investing a minimum of ₹5,000. The investment can go up to ₹90,000, said India's third largest private lender. For Express FD, the bank is offering a short tenure of 6 to 12 months. The interest rate for the Axis Bank Express FD will be the same which is applicable to the regular FD accounts of the same tenure, said Axis Bank in a press release. The private sector bank usually offers an interest of 6.25% to 6.70% for the tenure of 6 months to 12 months.
"Fixed deposit still remains the most preferred choice for many first time savers," believes Praveen Bhatt, EVP, Retail Liabilities & Direct Banking Channel Products, Axis Bank. In FY 18-19, Axis Bank witnessed 45% growth in its fixed deposit book while the industry grew at 9%, the bank said.
How to open an Express FD?
Customers can invest in Express FD using any savings account from any bank in India. The funds can be deposited in Express FD account through net banking, debit card or via UPI. A valid PAN and Aadhaar number are required to open Axis Express FD account online. The customer's Aadhaar number must be linked with their mobile numbers as Aadhaar-based OTP is essential to invest in the Axis Express FD. On successful completion of KYC, the customer can opt for additional benefits like personal loans, credit cards, forex card offerings from the bank, the lender said in a press release.
Axis Bank is offering free withdrawal of up to 25% of the fixed deposit amount without any penalty charges. Customers will also have the option of auto-renewing the Express FD before maturity. Once the fixed deposit matures, the entire amount, the initial investments plus the interest, will be credited to customer's bank account within three days, said Axis Bank.
"With the launch of Express FD, we are offering enhanced online services to our new to bank younger customers who are digitally savvy and are looking for short term investment in FDs," says Praveen Bhatt.