AU Bank is a small finance bank which started its operation as a commercial bank in 2019. It offers a variety of fixed deposit options to its customers at a lucrative interest rate. Fixed deposits are one of the most popular investment avenues as they provide a stable return on the principal with minimal risk. AU Bank FD comes with different tenures ranging from a week to 10 years. The interest rates are also very competitive compared to their counterparts.
Let’s discuss in detail all aspects of the fixed deposits offered by AU Bank, including the FD rates of AU Bank.
Why Choose AU Bank FD?
Here are different reasons why you should consider investing in AU Bank FD:
AU Bank offers a very lucrative interest rate, which can be as high as 8% for general citizens. For senior citizens, AU Bank offers an additional 0.50% across all FD options. Hence, the highest interest rate for a senior citizen investor can be as high as 8.50%. Higher AU Small Finance Bank FD rates automatically translate into higher incomes for the depositors.
The AU Bank FD comes with flexible tenures. It ranges from seven days to ten years. One can choose the tenure as per their financial objectives and investment market outlook. However, while deciding the tenure, one must remember that longer tenure usually means higher interest rates.
The AU Bank FD also comes with the loan against FD facility that can be accessed by all depositors. One can use this option to overcome their immediate financial emergencies and avoid making a premature withdrawal, which would incur penalties and other charges.
Another reason why one should opt for AU Bank FD is the safety associated with it. AU Small Finance Bank is a registered commercial bank and comes under the Deposit Insurance Credit Guarantee Corporation; hence, all fixed deposits have insurance coverage of up to ₹5,00,000.
The fixed deposits of the AU Bank come with the option of auto-renewal. By availing this option, your fixed deposits will be renewed again for the same period after the maturity. You do not have to run behind renewing your FD once again. However, the FD will be renewed at the prevailing market interest rates and not at the interest rate of the matured FD.
AU Bank FD Interest Rates
The AU Bank FD rates for deposit amounts less than ₹2 crores are as follows:
|7 Days to 1 Month 15 Days||3.75%|
|1 Month 16 Days to 3 Months||4.25%|
|3 Months 1 Day to 6 Months||5.00%|
|6 Months 1 Day to 12 Months||6.75%|
|12 Months 1 Day to 15 Months||7.75%|
|15 Months 1 Day to 18 Months||7.50%|
|18 Months 1 Day to 24 Months||7.50%|
|24 Months 1 Day to 36 Months||8.00%|
|36 Months 1 Day to 45 Months||7.75%|
|45 Months 1 Day to less than 60 Months||7.25%|
|60 Months to 120 Months||7.25%|
*Effective from 16th August, 2023.
Please note that the interest rates mentioned above are for citizens aged less than 60 years. For senior citizens, the interest rate will be 0.50% higher for each FD tenure.
AU FD Interest Rate for Senior Citizens
|Tenure Bucket||Interest Rates|
|7 Days to 1 Month 15 Days||4.25%|
|1 Month 16 Days to 3 Months||4.75%|
|3 Months 1 Day to 6 Months||5.50%|
|6 Months 1 Day to 12 Months||7.25%|
|12 Months 1 Day to 15 Months||8.25%|
|15 Months 1 Day to 18 Months||8.00%|
|18 Months 1 Day to 24 Months||8.00%|
|24 Months 1 Day to 36 Months||8.50%|
|36 Months 1 Day to 45 Months||8.25%|
|45 Months 1 Day to less than 60 Months||7.75%|
|60 Months to 120 Months||7.75%|
NRE/NRO/Domestic AU Small Finance Bank FD rates for less than Rs.2 crores
|Tenure||Resident / NRE / NRO Interest Rates|
for Monthly payout p.a.(%)
|Senior Citizen Interest Rates|
for Monthly payout p.a.(%)
|7 Days to 1 Month 15 Days||–||–|
|1 Month 16 Days to 3 Months||–||–|
|3 Month 1 Day to 6 Months||4.98%||5.47%|
|6 Months 1 Day to 12 Months||6.71%||7.21%|
|12 Months 1 Day to 15 Months||7.70%||8.19%|
|15 Months 1 Day to 18 Months||7.45%||7.95%|
|18 Months 1 Day to 24 Months||7.45%||7.95%|
|24 Months 1 Day to 36 Months||7.95%||8.44%|
|36 Months 1 Day to 45 Months||7.70%||8.19%|
|45 Months 1 Day to less than 60 Months||7.21%||7.70%|
|60 Months to 120 Months||7.21%||7.70%|
How to Use the AU Bank FD Calculator?
You can follow the steps below to effectively use the AU Bank FD calculator:
Step 1: Navigate to the AU Bank FD Calculator.
Step 2: Enter the principal amount, AU small bank FD rate and tenure. You might also be asked whether you are a senior citizen or not.
Step 3: After this, select the type of interest payout option.
Step 4: Click on the “Proceed” option.
Step 6: The maturity amount will be shown on your screen.
The AU Bank FD is one of the best fixed deposits currently available in the market. The various benefits of the FD, apart from the attractive interest rates (0.50% additional interest rate for senior citizens), will help investors cushion the burgeoning inflation. However, before making any decision regarding investing your money in an AU Bank fixed deposit, you should thoroughly analyse your investment objectives and see how this investment instrument aligns with the same.
Yes, you can withdraw any amount from your FD before its maturity; however, you cannot prematurely withdraw from your tax savings fixed deposit as it has a lock-in period. It should be noted that the bank will charge a 1% penalty for premature withdrawal.
The minimum amount required for opening an AU Bank FD account is ₹2,000. However, there is no limit on the maximum amount that you can invest in the same.
Yes, AU Small Finance Bank also allows NRE and NRO account holders, i.e., non-resident Indians, to deposit their money in a fixed deposit account. However, the interest rates will not be what is offered to Indian residents.