Axis Bank has launched a pioneering feature that allows customers to open Fixed Deposits (FDs) using funds from non-Axis Bank accounts. This marks a significant step in India's digital banking evolution, as Axis Bank becomes the first private sector bank to enable FD creation through UPI and Net Banking without requiring customers to transfer money into an Axis Bank account first.
How Does It Work?
Until now, customers had to move funds into their Axis Bank savings accounts before starting an FD. With this new feature, Existing-To-Bank (ETB) customers with valid KYC can invest in an FD directly from their other bank accounts via the Axis Mobile app. The process is simple:
- Select the FD option in the app
- Choose the preferred tenure and amount
- Complete the payment via UPI or Net Banking
Once the transaction is successful, the FD is opened instantly—eliminating the hassle of adding payees or making separate fund transfers.
Why Is This Important?
Axis Bank’s move aligns with the principles of open banking, removing traditional barriers and making FD investments more accessible and seamless. Customers no longer need to maintain a balance in their Axis Bank savings account to start an FD, making it easier to take advantage of competitive interest rates and maximise returns.
Interest Rates & FD Options
Axis Bank offers multiple FD options, including regular FDs, digital FDs, tax-saver FDs and auto FDs. Interest rates vary based on tenure and deposit amount. For deposits under ₹3 crores, general citizens can earn between 3.00% and 7.25% interest, while senior citizens enjoy even higher rates. Some key rates include:
- 4.75% for FDs between 88 days and 6 months
- 5.75% for 6 months to less than 7 months
- 7.25% for deposits of 15 months to less than 2 years
