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AU Small Finance Bank Fixed Deposit

Updated 06 Dec 2023

In India, fixed deposits have been a tried and tested investment option for ages. Amongst many banks offering FD schemes, AU Small Finance Bank stands out, with its roots tracing back to its establishment in 1996 as an NBFC.

Today, as a scheduled bank, it serves many clients, offering varied fixed deposit schemes tailored to meet different investment objectives. In this blog, let's delve deep into what AU Small Finance Bank FDs offer.

Types of FDs in AU Small Finance Bank

  • Regular Fixed Deposit
  • 5-Year Tax Saving Fixed Deposit
  • Sweep-in facility for FD
  • Covid Shield Deposit

Benefits of Investing in AU Small Finance Bank Fixed Deposits

  • Period: FD ranges from 7 days to a maximum of 10 years
  • Convenient: Easy FD opening and liquidation for account holders
  • DICGC insurance: Investments up to ₹5 lakhs are covered.
  • Minimum amount: Commence an FD with just ₹1,000.
  • Preference to senior citizens: An extra interest of up to 0.75% p.a.
  • Tax benefits: Deductions under Section 80C of the Income Tax Act of 1961
  • Auto-renewal option: Hassle-free renewal at maturity.
  • Nomination facility: Appoint beneficiaries for your investments.
  • Video KYC Facility: Provides easy 2 min video KYC for account opening.

Features of AU Small Finance Bank FDs

Regular Fixed Deposit:

  • Reinvestment or monthly/quarterly interest payouts
  • Tenure from 7 days to 10 years
  • Minimum deposit of ₹1,000. No maximum limit
  • 1% penalty on premature withdrawals. An overdraft facility is available.
  • TDS is applicable under conditions.
  • Based on tenor, the interest rate for this scheme ranges from 3.75% to 8.00% for the general public and 4.25% to 8.50% for senior citizens.

5-Year Tax Saving Fixed Deposit:

  • Tax benefits for depositors
  • Minimum deposit of ₹1,000 and maximum of ₹1.5 lakhs p.a
  • No premature withdrawal
  • Various application methods.
  • Based on tenor, the interest rate for this scheme ranges from 3.75% to 8.00% for the general public and 4.25% to 8.50% for senior citizens.

Sweep-in facility for FD:

  • Linking savings/current account with FD.
  • Multiple FD accounts can be linked with the savings and current account.
  • Use partial FD funds without breaking the entire deposit.
  • It helps in meeting the urgent fund requirement such as EMI payment or cheque disbursal by sweep in the cash in your savings or current account.
  • No extra costs for overdrafts.
  • Based on tenor, the interest rate for this scheme ranges from 3.75% to 8.00% for the general public and 4.25% to 8.50% for senior citizens.

About COVID Shield Deposit:

  • Designed to provide financial stability during emergencies like COVID-19.
  • Aims to support both personal expenses and family needs.

Features of COVID Shield Deposits:

  • High interest rates on deposits.
  • Loyalty vouchers upon renewal: 0.20% for 2-year terms and 0.30% for 3 years or more (awarded only once based on initial booking tenure).
  • Account conversion feature: Automatic conversion of maturing COVID Shield Deposits to standard FDs during renewal.
  • Life insurance coverage up to INR 5,00,000; option to book under relatives' names for increased coverage.
  • Insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
  • Additional perks: Preferential loan rates, pre-approved loans post a year of plan completion, and more.

Benefits of COVID Shield Deposits:

  • Acts as an emergency fund for unforeseen expenses such as rent and school fees.
  • Provides dual advantages: high interest and capital safety.
  • Life insurance coverage on the Fixed Deposit.
  • Senior citizens earn up to 0.50% additional interest.
  • Accessible banking services even during emergencies

Eligibility Criteria

  • Resident Indians
  • Persons of Indian origin
  • Overseas citizens & non-resident Indians
  • Individuals aged 18 and above
  • Minors
  • NRIs
  • HUF members
  • Partnership firms
  • Sole proprietorship firms
  • Limited companies
  • Trust accounts

Documents Required

Identity proofs:

  • PAN card
  • Aadhar card
  • Driving license
  • Voter ID
  • Passport

Address proofs:

  • Aadhar card
  • Voter ID
  • Electricity bill
  • Telephone bill

How To Open An FD Account with AU Small Finance Bank?

Fixed deposit accounts can be opened in both online and offline methods:

Online Method (Via APP and Net Banking)

For non-AU Small Finance Bank customers with no current or savings account:

Step 1: Select the FD option on the AU 0101 App.
Step 2: Enter PAN Aadhar details and proceed for E-KYC
Step 3: Confirm income and personal details and submit the FATCA declaration  
Step 4: Choose your Fixed Deposit Type; enter the Amount, Tenure, Bank Account Details and branch.
Step 5: Confirm and proceed to fund your account.
Step 6: Select ‘Complete your KYC over Video Call now’ or ‘Schedule a Video Call’ later.
Step 7: Confirm your details with our Video Banking Officer. Then, display your PAN card on the camera and sign on a blank piece of paper & display your signature on the camera.
Step 8: Tap on FD and select Open FD.

For AU Small Finance Bank Customer:

Step 1: Log in to AU 0101 App
Step 2: Select Product, then enter the Deposit Amount. Now select Interest Payout Frequency, then Deposit Period and Debit Account.
Step 3: Click on Next.
Step 4: Set Maturity Instructions and also choose to select a Nominee.
Step 5: Proceed to book your FD.

Offline Method

Step 1: Visit the bank branch.
Step 2: Take the FD application form. 
Step 3: Fill in the required details and submit the necessary documents. 
Step 4: Submit the form to the branch.

AU Small Finance Bank FD Premature Withdrawal

AU Small Finance Bank allows premature withdrawal of all its FDs, except for tax-saving FDs. For premature withdrawals, there's a penalty of 1% on the earned interest.

FAQs

Can investors get a loan against AU Small Finance Bank FD?

Yes, the investor can get a loan in the form of an overdraft facility on an FD.

Is the ₹5 lakhs DICGC insurance cover applicable on AU Small Finance Bank FD?

Yes. ₹5 lakhs Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance cover applies to AU Small Finance Bank FD

Can investors increase the amount of FD once made?

Once an AU Small Finance Bank FD has been initiated, investors cannot deposit any additional amount into that particular FD. However, they can open a fresh FD with the additional amount if they wish to invest more.

Can investors check the amount of FD in AU Small Finance Bank?

You can check your AU Small Finance Bank FD balance online by logging into the internet banking portal. For an offline check, update your passbook by visiting the nearest branch of AU Small Finance Bank.

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AU Small Finance Bank

Calculate AU Small Finance Bank FD Returns

₹1,00,000
6%
365
days
daysmonthsyears
Maturity Amount₹1,06,000

Understanding Fixed Deposit

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