Axis Bank announces no penalty on premature closure of fixed deposits1 min read . Updated: 11 Jan 2021, 01:16 PM IST
- Axis Bank said the objective of this customer-friendly feature is to inculcate and encourage retail customers to go for long-term savings
- Axis Bank gives an interest rate ranging from 2.5% to 5.50% on deposits maturing in 7 days to 10 years
In a first-of-its-kind offer for retail customers, private lender Axis Bank today announced the removal of penalty on premature closure of all new retail term deposits booked on or after 15 December 2020 for a tenure of 2 years or more.
The objective of this customer-friendly feature is to inculcate and encourage retail customers to go for long-term savings without worrying about the sudden need for liquidity, Axis Bank said. The new feature will be applicable on all new fixed deposits and recurring deposits. For new deposits booked for a tenure above 2 years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking.
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“We at Axis Bank are continuously working on bringing new and exciting features to meet the changing needs of our customers. Thus, 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," said Praveen Bhatt, EVP - Retail Liabilities and Direct Banking Products, Axis Bank.
The new feature also offers no penalty on first withdrawal of up to 25 per cent of term deposit principal value. Additionally, Axis Bank provides attractive interest rates and multiple options like cumulative, monthly or quarterly pay-out of interest on its fixed and recurring deposits.
Axis Bank, the third-largest private sector bank in India, gives an interest rate ranging from 2.5% to 5.50% on deposits maturing in 7 days to 10 years to the general public and 2.5% to 6.05% to senior citizens on these FDs.