Good news for customers! Axis Bank launches short-term online fixed deposits

Axis Bank, India’s third-largest private sector bank, on Monday announced the launch of ‘Express FD’, a digital fixed deposit (FD) product that allows a customer to open an FD account in three minutes through the digital mode without opening a savings account with the bank.
‘Express FD’ offers attractive interest rates, zero issuance fees and no penalty on pre-mature withdrawal of up to 25% of the amount, the bank said. A customer can open an Express FD account by investing a minimum Rs 5,000 up to Rs 90,000, for a tenure of 6 to 12 months. The funds can be deposited in Express FD account through net-banking, debit card or via UPI. After completion of KYC, the customer can opt for additional benefits like personal loans, credit cards, forex card offerings, lifestyle benefits.

This launch is in line with the bank’s proposition for new-to-banking customers, to offer them a quick and convenient way to save money for short-term goals.

Praveen Bhatt, EVP — Retail Liabilities & Direct Banking Channel Products, Axis Bank, said, “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.’’

In FY19, Axis Bank witnessed 45% growth in its FD book while the industry grew at 9%. Driven by digital initiatives, the share of private banks in FDs has gone up from 22% in March 2017 to 29% in March 2019. For Q4FY19, it witnessed 100% y-o-y growth in its digitally booked FDs.