Axis Bank has removed the penalty on premature closure of all new retail term deposits booked on or after December 15, 2020 for tenure of 2 years or more.
The new feature will be applicable on all new fixed deposits and recurring deposits. For new deposits booked for tenure above 2 years, there will be nil premature penalty if the entire deposit is prematurely withdrawn post 15 months of booking. The new feature also offers no penalty on first withdrawal of up to 25 percent of term deposit principal value.
“The objective of this customer-friendly feature is to inculcate and encourage retail customers to go for long-term savings without worrying about the sudden need for liquidity,” the bank said in a press statement.