Summary: Axis Bank’s domestic fixed deposit is a bank term-deposit product with tenures ranging from 7 days to 10 years, cumulative and payout choices, premature-withdrawal facilities subject to conditions, nomination, renewal and loan/overdraft options. Axis Bank’s official rate page, accessed on 4 October 2026, states that its displayed rates are applicable for 3 October 2026 and identifies 10 September 2026 as the effective date for the current domestic FD rate schedule. For deposits below ₹3 crore, the highlighted rates include 6.25% p.a. for 1 year to 1 year 10 days and 6.50% p.a. for 18 months to below 2 years for general customers; corresponding senior-citizen rates are 6.75% and 7.00%. Interest is taxable even where no TDS is deducted. From Tax Year 2026-27, bank-interest TDS is governed by section 393 of the Income-tax Act, 2025, with thresholds of ₹50,000 for other residents and ₹1,00,000 for senior citizens. Eligible declarations previously made through Forms 15G/15H are now made through Form 121 under section 393(6) read with Rule 211.
- Axis Bank FD Rates Applicable in October 2026
- Tenure, Minimum Deposit and Eligibility
- Cumulative and Interest-Payout Options
- Premature Withdrawal and Penalty
- Renewal and Auto-Rollover
- Nomination
- Loan and Overdraft Against FD
- DICGC Insurance: ₹5 Lakh Is Not Per FD
- Income-tax Treatment of FD Interest for Tax Year 2026-27
- TDS under Section 393
- Form 121 Replaces Forms 15G and 15H
- Senior Citizens: Interest Deduction
- PAN and Tax Compliance
- Frequently Asked Questions
- Key Takeaways
Axis Bank FD Rates Applicable in October 2026
Axis Bank’s current official FD page states that the rates displayed are applicable for 3 October 2026 and that the current domestic FD schedule is effective from 10 September 2026. Rates are subject to change without prior notice. The following are key rates specifically highlighted by the bank for callable domestic deposits:
| Deposit / tenure | General | Senior citizen |
|---|---|---|
| Below ₹3 crore — 1 year to 1 year 10 days | 6.25% | 6.75% |
| Below ₹3 crore — 18 months to below 2 years | 6.50% | 7.00% |
| ₹3 crore to below ₹5 crore — 1 year to 1 year 10 days | 5.90% | 6.40% |
| ₹3 crore to below ₹5 crore — 18 months to below 2 years | 5.90% | 6.40% |
The rate applicable to an actual deposit depends on the precise tenure, deposit amount, customer category and rate prevailing on the booking/renewal date. A depositor should therefore verify the bank’s live rate card immediately before booking.
Tenure, Minimum Deposit and Eligibility
Axis Bank offers regular fixed deposits with tenures from 7 days to 10 years. The bank states a minimum of ₹5,000 where an FD is booked through Internet Banking or Mobile Banking and ₹10,000 when booked through a branch. Resident individuals, HUFs, sole proprietorships, partnership firms, limited companies and trusts are among the categories listed as eligible, subject to KYC and product conditions.
Cumulative and Interest-Payout Options
For deposits of six months and above, Axis Bank states that interest is generally calculated quarterly. Under the cumulative/reinvestment structure, interest earned during a quarter is added to principal for the next quarter’s calculation. Deposits below six months are generally calculated on simple interest based on days. Quarterly payout is available, while monthly payout uses a discounted rate relative to the standard rate. This distinction matters because the headline annual rate should not be confused with the actual cash payout under every option.
Premature Withdrawal and Penalty
For rupee term deposits below ₹5 crore opened or renewed on or after 1 May 2014, Axis Bank states that premature encashment generally results in interest being paid at 1 percentage point below the applicable card rate for the period the deposit actually remained with the bank, subject to the bank’s detailed terms. The bank may apply different rules to specific products and large deposits. Domestic Fixed Deposit Plus is expressly non-callable and does not permit premature withdrawal.
Premature closure therefore has two possible economic effects: the deposit may lose the originally contracted tenure rate, and the applicable premature-withdrawal adjustment may further reduce interest. Depositors should check the exact premature-closure clause for the deposit receipt before relying on a projected maturity amount.
Renewal and Auto-Rollover
Axis Bank permits automatic rollover choices for eligible regular deposits. Depending on the mandate, only principal may be rolled over with interest paid out, or both principal and accrued interest may be renewed for the same tenure at the rate applicable on the maturity date. Auto-renewal is not available for certain products including Fixed Deposit Plus and Tax Saver deposits.
Nomination
Nomination is important for operational settlement on death of the depositor. Axis Bank’s current product information states that nomination in the FD application enables the nominee to claim the deposit after the account holder’s death upon furnishing valid death proof, subject to banking law, succession rights and the bank’s documentation requirements. A nominee ordinarily receives the money as nominee; nomination does not necessarily determine ultimate beneficial succession rights.
Loan and Overdraft Against FD
Axis Bank offers loan/overdraft facilities against eligible fixed deposits, enabling liquidity without immediate premature closure. The bank states that the borrowing rate is generally above the FD rate. Availability, margin, pricing and eligibility depend on the deposit and customer profile. Borrowing against an FD should therefore be compared with premature closure based on actual interest cost and liquidity needs rather than assuming it is always cheaper.
DICGC Insurance: ₹5 Lakh Is Not Per FD
Eligible deposits with an insured bank are covered by the Deposit Insurance and Credit Guarantee Corporation up to ₹5 lakh per depositor per bank in the same right and same capacity, including principal and accrued interest. Savings, current, recurring and fixed deposits at different branches of the same bank are aggregated for this purpose. Separate accounts or multiple FDs in the same capacity do not multiply the ₹5 lakh cover. Deposits with different insured banks are separately covered subject to DICGC rules. TaxGuru’s guide to DICGC deposit insurance explains the coverage framework, while its analysis of protection available to bank FD investors discusses the ₹5 lakh ceiling.
Income-tax Treatment of FD Interest for Tax Year 2026-27
Fixed-deposit interest is taxable income. The TDS threshold is not an exemption from income-tax. Interest must generally be offered under the applicable head and taxed at the taxpayer’s applicable rates even if the bank deducts no tax. TaxGuru’s analysis of tax implications of fixed deposits explains this distinction.
TDS under Section 393
From 1 April 2026, the Income-tax Act, 2025 applies. Bank interest corresponding to former section 194A is covered by section 393(1), Table Sl. No. 5(ii). For Tax Year 2026-27, the threshold is ₹50,000 for a resident other than a senior citizen and ₹1,00,000 for a senior citizen. The applicable resident interest withholding rate is generally 10%, subject to PAN and other statutory rules. TaxGuru’s TDS/TCS guide from 1 April 2026 sets out the new section mapping and thresholds.
| Resident depositor | Bank-interest TDS threshold | General rate where applicable |
|---|---|---|
| Below 60 years / other resident | ₹50,000 | 10% |
| Senior citizen | ₹1,00,000 | 10% |
TDS is merely tax collected at source. Crossing the threshold does not mean only the excess interest is taxable, and remaining below it does not make interest tax-free.
Form 121 Replaces Forms 15G and 15H
For Tax Year 2026-27, eligible no-deduction declarations are governed by section 393(6) of the Income-tax Act, 2025 read with Rule 211 of the Income-tax Rules, 2026. Form 121 replaces the earlier Forms 15G and 15H. TaxGuru’s Form 121 guidance note and FD-interest TDS guide explain the eligibility conditions.
Form 121 should not be filed merely because a depositor prefers not to suffer TDS. The statutory eligibility conditions, including estimated tax liability and additional restrictions applicable to non-senior citizens, must be satisfied. A false declaration can have serious consequences.
Senior Citizens: Interest Deduction
The Income-tax Act, 2025 reorganises the earlier section 80TTB benefit under section 153. Subject to the applicable tax regime and statutory conditions, a resident senior citizen can claim the prescribed deduction for eligible deposit interest up to ₹50,000. TaxGuru’s comparison of deductions under the Income-tax Act, 2025 maps old section 80TTB to section 153, while its deposit-interest deduction FAQs explain the underlying rules.
The ₹50,000 deduction and ₹1,00,000 TDS threshold are different concepts. One determines a deduction in computing taxable income; the other determines whether the bank must withhold tax.
PAN and Tax Compliance
PAN/KYC information should be correctly recorded with the bank. A missing or invalid PAN can affect withholding and reporting. Depositors should reconcile interest certificates, AIS/TIS information, Form 26AS and books/records where applicable. For cumulative deposits, taxability should not be assumed to arise only on final maturity merely because cash is received later; the applicable method and annual credit/accrual must be considered.
Frequently Asked Questions
1. What is the current highlighted Axis Bank FD rate for deposits below ₹3 crore?
For rates applicable on 3 October 2026, Axis Bank highlights 6.25% for 1 year to 1 year 10 days and 6.50% for 18 months to below 2 years for general customers. Corresponding senior-citizen rates are 6.75% and 7.00%.
2. From when is the current rate schedule effective?
Axis Bank’s current rate page identifies 10 September 2026 as the effective date for domestic fixed-deposit rates. Rates remain subject to change.
3. Is FD interest tax-free if no TDS is deducted?
No. The TDS threshold only determines withholding. Taxability of the full interest is determined separately under the Income-tax Act.
4. What are the TDS thresholds for Tax Year 2026-27?
For bank interest, the threshold is ₹50,000 for other residents and ₹1,00,000 for senior citizens under section 393, subject to the statutory conditions.
5. Can Forms 15G/15H still be used?
Under the Income-tax Act, 2025 framework effective from 1 April 2026, the relevant declaration is Form 121 under section 393(6) read with Rule 211, subject to eligibility.
6. Is every Axis Bank FD fully insured?
No. DICGC insurance is capped at ₹5 lakh per depositor per insured bank in the same right and same capacity, including principal and interest, after aggregating eligible deposits.
7. Can an Axis Bank FD be closed before maturity?
Regular callable deposits generally permit premature closure subject to the applicable interest adjustment and terms. Fixed Deposit Plus is non-callable.
8. Can a depositor borrow against an FD?
Axis Bank offers loan/overdraft facilities against eligible FDs, subject to margin, pricing and product conditions.
Key Takeaways
Axis Bank’s domestic regular FD provides tenures from 7 days to 10 years, multiple payout structures, premature withdrawal for callable deposits, nomination, renewal and borrowing facilities. The official current rate page shows rates applicable on 3 October 2026 under the schedule effective 10 September 2026. For deposits below ₹3 crore, highlighted rates reach 6.50% for general customers and 7.00% for senior citizens for the 18-month-to-below-2-year bucket.
FD interest remains taxable regardless of whether TDS is deducted. For Tax Year 2026-27, section 393 governs bank-interest withholding, with ₹50,000 and ₹1,00,000 thresholds for other residents and senior citizens respectively. Form 121 has replaced Forms 15G/15H for eligible declarations. DICGC protection is limited to ₹5 lakh per depositor per bank in the same right and same capacity, including principal and interest.
Disclaimer: This article is for general educational and informational purposes only and reflects publicly available information and law considered as of 4 October 2026. It is not investment, financial, legal, tax, accounting or banking advice and does not constitute a recommendation, ranking, solicitation or endorsement of Axis Bank or any deposit product. Interest rates, deposit slabs, eligibility, senior-citizen benefits, premature-withdrawal terms, renewal options, loan/overdraft margins and operational conditions can change without prior notice. Readers should verify the latest official bank rate card and deposit terms immediately before opening or renewing an FD. DICGC insurance is subject to the DICGC Act and applicable rules and does not guarantee amounts beyond the statutory insured limit. Tax treatment depends on residential status, age, tax regime, method of accounting, aggregate interest, PAN status and individual facts. TDS is not the final tax liability. Form 121 should be furnished only where statutory eligibility conditions are satisfied. Readers should independently verify current law and obtain professional advice where appropriate.
