NEW DELHI: Private sector lender Axis Bank on Monday announced the waiving of penalties on premature closure of all new retail term deposits booked on or after December 15, 2020, for a tenure of two years or more.
The move is the first of its kind, the lender said, adding that it aims to encourage retail customers to opt 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.
According to the bank, for new deposits booked for a tenure above two years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking.
“… to stay ahead of the curve, we have waived off the penalty on all term deposits closed after 15 months,” said Praveen Bhatt, EVP – Retail Liabilities and Direct Banking Products, Axis Bank.
The feature also offers no penalty on first withdrawals of up to 25 per cent of the term deposit’s principal value. Axis Bank offers interest rates of 2.5-5.5 per cent on deposits maturing from 7 days-10 years.