A Fixed Deposit lets you grow your wealth for various purposes, including a comfortable retirement or children’s higher education. While different banks offer attractive interest rates on Fixed Deposits, it will be immensely beneficial to find the one offering the highest interest rate. At AU Small Finance Bank, the general public can enjoy FD interest rates of 3.75% to 8% p.a.
For senior citizens, the Fixed Deposit interest rate ranges between 4.25% to 8.50% p.a. The interest rate offered on tax-saving FDs is 7.20% p.a. for the general public and 7.70% p.a. for senior citizens. Scroll through this article to gather more knowledge about the Fixed Deposit interest rates from AU Small Finance Bank.
Type of FD Schemes from AU Small Finance Bank
The different types of Fixed Deposits offered by AU Small Finance Bank are as follows:
- Regular Fixed Deposits
In a regular Fixed Deposit account of AU Small Finance Bank, the minimum deposit amount is Rs 1000. The tenure of a regular Fixed Deposit account can range between 7 days to 10 years. The regular Fixed Deposit rates are up to 0.75% higher for senior citizens than the general public.
Depositors can choose between a monthly or quarterly payout option. You also have the option of withdrawing interest income upon maturity. Partial or premature withdrawal is eligible from the regular FDs.
You can also avail of nomination and overdraft facilities on regular FD schemes from AU Small Finance Bank. Depositors are allowed to open an FD account via video banking, AU 0101 app, net banking or by going to the nearest branch.
- AU 5-Year Tax Saving Fixed Deposit
Deposits in a five-year tax saving FD are entitled to tax deductions of up to Rs 1.5 lakhs in a financial year. The tax-saving FDs come with a lock-in period of 5 years.
The minimum deposit in the FD is Rs 1000, and the maximum deposit is Rs 1.5 lakhs every financial year. Senior citizens are eligible for an additional up to 0.75% per annum on the FDs.
Premature withdrawal is not supported by the five years tax-saving FDs. You can open a five-year tax saving FD by visiting the nearest AU Small Finance Bank branch or through video banking or net banking.
- Fixed Deposit Sweep-In Facility
The scheme enables current and savings account holders to gain high interest rates on FD without sacrificing liquidity. Under this scheme, the savings or current account can be linked to multiple Fixed Deposits. When the savings or current accounts have insufficient balance for a transaction, the deficit amount can be liquidated from the linked FDs. The insufficient balance gets credited to the savings or current account without breaking the entire FD.
AU Small Finance Bank FD Interest Rates According to Tenure
The AU Small Finance Bank FD interest rates vary according to the term. The interest rates for deposits of different tenures are as follows:
- Short-Term Fixed Deposits
Fixed Deposits ranging from 7 days to a year or less are for the short term. The interest rates on short-term FDs range between 3.5% to 5% for general depositors. For senior citizens, the short-term deposit interest rate ranges between 4% to 5.5%.
- Medium-Term Fixed Deposits
Medium-term Fixed Deposits have a tenure of 1 year to 5 years. Their interest rate is 6% for the general public and 6.5% for senior citizens, according to the lock-in period.
- Long-Term Fixed Deposits
Long-term Fixed Deposits can have a tenure of 5 to 10 years. The interest rate on long-term FDs is 6.25% and 6.75% for the general public and senior citizens, respectively.
Depositors can enjoy lucrative AU Small Finance Bank FD rates according to their tenure and principal amount. Apart from high interest rates, AU Small Finance Bank also offers a lot of convenience in opening an FD account. Moreover, you can choose between different types of payout like monthly, quarterly, or at maturity. So open your Fixed Deposit account today and get ready to increase your savings effortlessly.
What are the advantages of investing in small finance banks over leading commercial banks?
A major advantage of investing in small finance banks is a high interest Fixed Deposit. But before making any investment, depositors should compare the different interest rates.
Can I enjoy tax benefits by investing in Fixed Deposit schemes from AU Small Finance Bank?
AU Small Finance Bank offers a five-year tax saving Fixed Deposit scheme. It offers tax deductions of up to Rs 1.5 lakhs in a financial year.
Can I get a loan an overdraft against AU Small Finance Bank Fixed Deposits?
Yes, you can avail of overdrafts against AU Small Finance Bank Fixed Deposits.
What is the penalty for premature closure of AU Small Finance Bank Fixed Deposits?
AU Small Finance Bank charges a penalty fee of 1% on premature withdrawal of FDs, irrespective of tenure.
Is it possible to change the term of an existing Fixed Deposit?
No, you cannot change the term of your existing Fixed Deposit account.