Offering customers with easy investment option in the form of fixed deposit, AU Small Finance Bank provides safety of one’s saving while maximizing the same. Along with flexible tenure, the AU Small Finance Bank FD rates come with guarantee of return on the money invested in the bank’s FD schemes.
AU Small Finance Bank FD Rates 2020
|Tenure||Interest Rates (p.a.)|
|Regular Citizens||Senior Citizens|
|7 days – 1 month 15 days||5.25%||5.75%|
|1 month 16 days – 3 months||6.00%||6.50%|
|3 months 1 day – 6 months||6.50%||7.00%|
|6 months 1 day – 12 months||7.00%||7.50%|
|12 months 1 day – 15 months||7.63%||8.13%|
|15 months 1 day – 18 months||7.50%||8.00%|
|18 months 1 day – 24 months||7.50%||8.00%|
|24 months 1 day – 36 months||7.77%||8.27%|
|36 months 1 day – 45 months||7.50%||8.00%|
|45 months 1 day – 60 months||7.50%||8.00%|
|60 months 1 day – 120 months||7.25%||7.75%|
Note: The above-mentioned AU Bank FD rates are applicable to domestic and NRE/NRO deposits below Rs. 2 crore; effective from October 1st, 2019.
NRE/NRO deposits are available for tenure ranging from 12 months 1 day and above.
Types of FD Schemes Offered by AU Small Finance Bank
AU Small Finance Bank provides two distinct types of FD schemes. While the first one is designed solely to provide investment solution, the other one helps tax payers in saving income tax. These schemes are:
1. Regular Fixed Deposit
With high AU Bank FD rates coupled with flexibility, the regular fixed deposit scheme proves to be a good investment option for risk-averse investors. Resident Indians, HUFs, sole proprietorship firms, trusts, etc. can deposit in this scheme and earn good returns as per the prevailing AU Finance FD rates. Refer to the table below for detailed information on the stated scheme:
|Tenure||7 days – 120 months|
|Min. Deposit Amount||Rs. 1,000|
|Interest Treatment||Annual compounding and payout|
|Rates for Senior Citizens||Additional 0.50% interest rate over applicable rates for regular citizens|
|Premature Withdrawal||Available; penalty of 1% on applicable fixed deposit rate|
2. 5-Year Tax Saving Fixed Deposit
The 5-Year Tax Saving Fixed Deposit Scheme provides customers with benefit of tax-saving in addition to maximizing their savings. This product can be availed individually or jointly (individuals or HUFs) however in case of joint account, tax benefit on the interest earned shall be extended only to the primary account holder. Investors can claim deductions u/s 80C for up to Rs. 1.5 lakh.
|Tenure||5 years (fixed)|
|Min. Deposit Amount||Rs. 1,000|
|Rates for Senior Citizens||Additional interest at 0.50% rate|
|Loan against FD||Not Available|
|Premature Withdrawal||Not Available|
Premature Withdrawal Facility
AU Small Finance Bank extends the facility to prematurely withdraw funds from its regular fixed deposit account. There can be multiple reasons of practising this like some financial emergency, expenses to be incurred in a wedding ceremony or an unexpected travel excursion. However, when one withdraws prematurely, they shall be required to pay a penalty of 1% on the applicable rate of interest.
AU Small Finance Bank FD Calculator
An FD calculator is a tool using which customers can know the potential maturity amount on investing in a fixed deposit. Before investing in a fixed deposit with AU Bank, it is suggested to use the FD Calculator available at Paisabazaar.com which is a free tool and can be used multiple times. Customers need basic information like the deposit amount and tenure along with the prevailing AU Bank FD rates for the respective term.
Documents Required to Apply for AU Small Finance Bank FD
To open a fixed deposit account with AU Small Finance Bank, it is imperative to keep the following list of documents in check:
- KYC Documents (Aadhaar card, PAN card, voter ID card, utility bills, etc. for photo ID verification, residence proof and age proof)
- Passport-sized photograph of depositor and nominee, if any
Note: This is not an exhaustive list.
Frequently Asked Questions
Q. What is the highest that a senior citizens can earn on investing in FD with the bank?
A. Senior citizens can earn returns at 8.27% (24 months 1 day – 36 months) as per the prevailing AU Small Finance Bank FD rates.
Q. Does investing in fixed deposits by AU Bank help in saving tax?
A. Investing in 5 year tax saving fixed deposit scheme shall aid investors in saving on income tax.
Q. What benefit does one get on investing in small finance banks over leading commercial banks?
A. Highlight of investing in a small finance bank is chance to earn returns at higher fixed deposit rates but before deciding, investors must check the financial health of the lender along with its credit rating to ensure safety.