Axis Bank removes penalty on premature closure of term deposits

By: |
January 11, 2021 2:52 PM

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deposits booked for a tenure above 2 years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking.

axis bank, term deposit, premature withdrawal, ITR filing, income tax return filing, income tax return filing for AY 2020-21, taxable income, gross total income, basic exemption limit, financial year, electricity expenses of Rs 1 lakh, foreign travel of 2 lakh, deposited a sum of more than Rs 1 crore, Form ITR-1 saralThe new feature will be applicable on all new fixed deposits and recurring deposits.

Axis Bank has announced the removal of penalty on premature closure of all new retail term deposits booked on or after December 15, 2020, for a tenure of 2 years or more. The objective of this feature is to inculcate and encourage retail customers to go for long-term savings without worrying about the sudden need for liquidity.

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deposits booked for a tenure above 2 years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking.

The bank said in a continued focus to put its customers’ interests at the forefront, this benefit will be applicable on all new term deposits booked or renewed on or after December 15, 2020.

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.

Praveen Bhatt, EVP – Retail Liabilities and Direct Banking Products, Axis Bank, said, “At Axis Bank, we 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.”

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